The Economic and Financial Crimes Commission (EFCC) has warned stakeholders in the extractive industry to comply with the Know Your Customer (KYC) regulations or face severe consequences.
These laws require financial institutions to verify the identity of their customers and, monitor transactions for suspicious activity.
The warning was part of the commission’s efforts to combat fraud and corruption in the extractive industry and ensure compliance with relevant regulations.
While addressing the 117th edition of ‘EFCC Connect,’ an open forum with the public held on Wednesday in Abuja on X Spaces, the Head of Proceeds of Crime Management at the EFCC’s Maiduguri Zonal Command, Ahmed Lawal, provided a detailed overview of various fraud schemes plaguing the extractive industry.
According to him, fraud in the industry spans different segments, including upstream, midstream, and downstream sectors, resulting in significant revenue loss for the government and individuals.
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 (KYC) 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.”
Lawal 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.