The Economic and Financial Crimes Commission (EFCC) Has Issued a Warning To Stakeholders In The Extractive Industry, Urging Them To Comply With Know Your Customer (KYC) Regulations Or Face Severe Repercussions.
The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to stakeholders in the extractive industry to comply with Know Your Customer (KYC) regulations or face severe consequences. These regulations mandate financial institutions to verify their customers’ identities and monitor transactions for suspicious activity.
This warning is part of the EFCC’s broader efforts to combat fraud and corruption within the extractive industry and to ensure compliance with pertinent regulations. Speaking at the 117th edition of ‘EFCC Connect,’ an open forum held on Wednesday in Abuja via X Spaces, Ahmed Lawal, Head of Proceeds of Crime Management at the EFCC’s Maiduguri Zonal Command, outlined various fraud schemes affecting the extractive industry.
According to Lawal, fraud in this sector occurs across all segments—upstream, midstream, and downstream—resulting in significant revenue losses for both the government and individuals.
“The extractive industry is particularly susceptible to fraud and corruption, with schemes affecting all segments, including upstream, midstream, and downstream. This leads to substantial revenue losses for both the government and individuals,” Lawal said.
He stressed that KYC compliance is crucial in preventing fraud and corruption. Companies must perform thorough due diligence on their customers and suppliers to prevent illicit activities such as money laundering and terrorism financing.
Lawal emphasized, “Know Your Customer (KYC) compliance is vital in preventing fraud and corruption. Companies need to conduct comprehensive due diligence on their customers and suppliers to avoid illicit activities like money laundering and terrorism financing.”
The EFCC urged companies in the extractive industry to obtain the necessary permits and licenses and to rigorously verify their customers and suppliers.
