In a significant move to bolster the fight against financial crimes, the Economic and Financial Crimes Commission (EFCC) has called upon Designated Non-Financial Businesses and Professions (DNFBPs) in Benin City to enhance their compliance with anti-money laundering (AML) regulations. This call to action was prominently voiced by EFCC Executive Chairman Ola Olukoyede during a comprehensive workshop organized by the Special Control Unit against Money Laundering (SCUML) on March 6, 2025. Olukoyede underscored the critical need for DNFBPs to adhere stringently to the 2022 Anti-Money Laundering Act, advocating for transparency, collaboration, and proactive reporting as essential measures for effectively combating financial malpractices.
The Economic Role and Financial Risks of DNFBPs
Acting Zonal Director’s Address on Economic and Financial Implications
Acting Zonal Director Effa Okim, representing Olukoyede, highlighted the pivotal economic role played by DNFBPs and the considerable financial risks posed by non-compliance with AML regulations. He stressed that the sheer scale of the economic contributions made by DNFBPs makes their compliance a matter of national interest. Non-compliance, Okim noted, could severely undermine the integrity of the financial system, exposing it to the dangers of money laundering and terrorist financing. These threats, if unchecked, could destabilize the economic structure, making the adherence to regulatory frameworks an urgent necessity.
Okim’s address emphasized the need for DNFBPs to transition from mere awareness of AML requirements to tangible actions that demonstrate accountability. The workshop’s theme, “From Awareness to Action,” encapsulated this very essence, aiming to foster a culture where stakeholders actively implement AML protocols. By moving beyond awareness, DNFBPs can play a crucial role in fortifying the financial system against various forms of financial crime. Collaborative efforts and proactive engagements with regulatory bodies are pivotal to achieving a well-rounded and resilient financial environment.
SCUML’s Perspective on Global Threats
Pascal Samu from SCUML provided an insightful perspective on the global implications of illicit financing, underlining the need for unified action against both terrorism and money laundering. He argued that combating these global threats requires simultaneous efforts at the national and international levels. The escape of illicit funds from regulatory scrutiny not only diminishes national financial integrity but also contributes to global instability. Thus, a coordinated and cohesive approach involving all DNFBPs is essential for addressing the multifaceted challenges posed by financial crimes.
Samu articulated that establishing robust Know-Your-Customer (KYC) and Customer Due Diligence (CDD) protocols is vital in this context. These measures ensure a thorough understanding of customer profiles and the assessment of transaction legitimacy. By integrating KYC and CDD into their operations, DNFBPs can serve as the frontline defense against financial crimes. The emphasis on these protocols at the workshop was intended to guide participants in adopting practices that could decisively thwart unwholesome activities and contribute to a safer financial ecosystem.
Compliance and Enforcement Measures
Administrative Sanctions for Non-Compliance
Compliance and enforcement were key focal points of the workshop, with ACE II Morris Keiriama, Compliance and Enforcement Officer at SCUML, detailing the array of administrative sanctions for DNFBPs that fail to comply with AML regulations. Keiriama warned that non-compliant entities could face heavy fines, temporary or permanent suspensions, license revocations, or even warning letters, depending on the severity of the infraction. Such stringent measures are designed not just to punish but to deter and correct errant behaviors, ensuring a culture of compliance within the business ecosystem.
Keiriama further urged DNFBPs to be vigilant in identifying and reporting any suspicious transactions that might indicate potential links to money laundering, terrorism financing, or other related criminal activities. He highlighted that prompt and accurate reporting of suspicious activities is a critical component of an effective AML strategy. DNFBPs, according to Keiriama, hold a significant responsibility in the broader financial regulatory framework, and their proactive compliance efforts are indispensable for maintaining the integrity and security of Nigeria’s financial system.
Proactive Compliance and National Security
In a significant effort to combat financial crimes, the Economic and Financial Crimes Commission (EFCC) has urged Designated Non-Financial Businesses and Professions (DNFBPs) in Benin City to strengthen their compliance with anti-money laundering (AML) regulations. This appeal was strongly emphasized by EFCC Executive Chairman Ola Olukoyede at a workshop led by the Special Control Unit against Money Laundering (SCUML) on March 6, 2025. Olukoyede highlighted the essential need for DNFBPs to rigorously follow the 2022 Anti-Money Laundering Act, advocating for transparency, cooperation, and proactive reporting as key measures to effectively fight financial misconduct. He stressed that these entities play a crucial role in the broader battle against money laundering and must adhere to strict standards. Enhanced compliance will not only help in preventing financial offenses but also contribute to creating a fair and transparent economic environment, vital for sustaining both local and global financial systems.
