EFCC wants businesses to adhere to anti-money laundering laws 

The Economic and Financial Crimes Commission (EFCC) has called on Designated Non-Financial Businesses and Professions (DNFBPs) across the country to ensure compliance with the Money Laundering (Prohibition and Prevention) Act, 2022, in their operations.

The charge was delivered during a one-day sensitization programme organized by the Special Control Unit Against Money Laundering (SCUML) in Enugu, aimed at mobilizing DNFBPs in the South-East towards compliance with anti-money laundering regulations.

Speaking on the theme “From Awareness to Action: Mobilizing DNFBPs for Compliance”, Assistant Commander of the EFCC (ACE I), Korede Abdul-Aziz, emphasized the importance of Know Your Customer (KYC) and Customer Due Diligence (CDD) processes in preventing fraud and financial crimes.

She noted that these measures are particularly critical in scrutinizing Politically Exposed Persons (PEPs), who are considered high-risk due to their access to public funds.

“One of the pillars of strong and effective anti-money laundering programmes is the adoption and implementation of comprehensive Customer Due Diligence policies. These policies help establish customer identities and predict transaction patterns, particularly for high-risk clients such as PEPs,” Abdul-Aziz stated.

She outlined three levels of due diligence: Enhanced Due Diligence, Customer Due Diligence, and Simplified Due Diligence, urging businesses to set up regular transaction monitoring systems to detect and report suspicious activities.

Highlighting best practices for DNFBPs, Abdul-Aziz advised businesses to take several key steps.

She emphasized the importance of conducting regular staff training on Know Your Customer (KYC) and Customer Due Diligence (CDD) processes to ensure employees understand compliance requirements. She also urged businesses to stay updated on regulatory changes to adapt to evolving financial laws.

Additionally, Abdul-Aziz stressed the need to establish clear reporting channels for detecting and addressing suspicious transactions.

She encouraged businesses to collaborate with regulatory agencies to enhance compliance efforts.

She advised the implementation of robust KYC and CDD procedures to strengthen anti-money laundering measures and mitigate financial risks.

She further warned that non-compliance with the Money Laundering (Prohibition and Prevention) Act, 2022, could result in monetary fines, license suspension, mandatory compliance training, and regular audits.

Speaking on Targeted Financial Sanctions (TFS), Abdul-Aziz described these measures as critical in preventing the financing of terrorism and the proliferation of weapons of mass destruction.

“You must conduct daily checks on the sanctioned lists issued by the United Nations and the Nigerian government. If a match is found, all funds must be frozen immediately, without prior notice to the listed individual,” she stressed.

In his presentation, ACE II Promise Oluigbo, Head of SCUML at the Enugu Zonal Directorate, explained how to identify and report Suspicious Transaction Reports (STRs).

“A transaction is considered suspicious if it is unjustifiable, unreasonably frequent, overly complex, or lacks a clear economic or lawful purpose,” he said.

He emphasized the need for effective monitoring of unusual transactions, urging businesses to tailor their monitoring systems based on risk levels.

Oluigbo also detailed the Administrative Sanction Guidelines for DNFBPs, outlining penalties to include fines as well as suspension, revocation or withdrawal of licenses, and warning letters.

Earlier, in his opening remarks, Deputy Commander of the EFCC (DCE) Onjefu Obe, the Acting Zonal Director of the EFCC in Enugu, urged DNFBPs to strengthen compliance with SCUML’s regulatory frameworks.

The sensitization program witnessed a massive turnout of participants, reflecting growing awareness and commitment to combating financial crimes in Nigeria.