LIVE UPDATES
ABUJA, Nigeria - The Economic and Financial Crimes Commission (EFCC) has raised concerns about the prevalent issue of money laundering in Nigeria's real estate sector, identifying estate developers as major enablers due to insufficient customer vetting.
In a press release shared on the EFCC's social media on Wednesday, Chairman Ola Olukoyede urged real estate developers to conduct background checks on investors to verify the legitimacy of their income sources.
He made this statement during a speech titled "Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents," at an event in Abuja.
Olukoyede stated, "Based on empirical data and various reports we've gathered, we have found that money laundering is quite common among real estate developers and industry stakeholders."
He encouraged developers to prioritize Know Your Customer (KYC) checks and stressed, "As a developer, your foremost consideration should be to implement KYC. Even if the law doesn't require it, it is vital for your business's longevity."
He cautioned that neglecting this could lead to serious repercussions, stating, "If someone steals money and uses it to purchase property from you, and we trace that money back to you, we will seize it, as you cannot profit from the proceeds of crime."
Olukoyede also pointed out the significance of adhering to regulations, noting, "The key distinction between our nation and developed countries where systems function effectively is the obedience to regulations, which we lack here."
He criticized the approach of some developers who operate without a clear understanding of existing regulations and urged them to comply to achieve success in their businesses.
While delivering strong warnings, Olukoyede also offered support to legitimate enterprises. He said, "Our aim is to help you thrive.
That’s my mission, because your success translates to more job opportunities for Nigerians, thereby reducing the likelihood of them engaging in financial crime."
Olukoyede encouraged developers to partner with the EFCC and assured them of full support, stating, "You can reach out to the EFCC; we are here to assist you.
Rest assured, we do not aim to undermine your business."
