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Conduct due diligence on your customers, EFCC urges firms

The Economic and Financial Crimes Commission has warned operators in the nation’s extractive industry to key into the Know Your Customer regulations or face the wrath of the law.

The warning is coming on the heels of the commission’s efforts aimed at combating fraud and corruption in the extractive industry while also ensuring compliance with relevant regulations.

The Head of Proceeds of Crime Management at the EFCC’s Maiduguri Zonal Command, Ahmed Lawal, gave the warning when he addressed the 117th edition of ‘EFCC Connect,’ an open forum with the public held in Abuja on X Spaces, ACE II.

Lawal said, “The extractive industry is particularly vulnerable to fraud and corruption, with schemes spanning different segments, including upstream, midstream, and downstream. This can result in significant revenue loss for the government and individuals.

“Know Your Customer compliance is critical in preventing fraud and corruption. Companies must conduct thorough due diligence on their customers and suppliers to prevent illicit activities such as money laundering and terrorism financing.”

He provided a detailed overview of various fraud schemes plaguing the extractive industry.

Lawal explained that fraud in the industry spans different segments, including upstream, midstream, and downstream sectors, resulting in significant revenue loss for the government and individuals.

He emphasised the importance of KYC compliance in preventing fraud and corruption, noting that the lack of due diligence on customers and suppliers can lead to illicit activities such as money laundering and terrorism financing.

The EFCC urged companies in the industry to obtain necessary permits and licences and to conduct thorough due diligence on their customers and suppliers.

Sourcepunch

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