EFCC Warns Extractive Industry to Comply with KYC Regulations

 ABUJA – The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to entities within the extractive industry to adhere to Know Your Customer (KYC) regulations or face severe penalties. This directive is part of the commission’s broader efforts to combat fraud and corruption and ensure regulatory compliance within the sector.

Speaking at the 117th edition of ‘EFCC Connect,’ a public forum held on Wednesday night in Abuja on X Spaces, ACE II Ahmed Lawal, Head of Proceeds of Crime Management at the EFCC’s Maiduguri Zonal Command, detailed the various fraud schemes affecting the extractive industry. Lawal explained that fraud is prevalent across the industry’s upstream, midstream, and downstream sectors, leading to substantial revenue losses for both the government and individuals.

“KYC compliance is essential in preventing fraud and corruption,” Lawal stated. “Failure to conduct due diligence on customers and suppliers can facilitate illicit activities such as money laundering and terrorism financing.”

The EFCC urged companies to secure the necessary permits and licenses and to perform comprehensive due diligence on their customers and suppliers. The commission emphasized its commitment to combating fraud and corruption within the extractive industry and warned that any company or individual found violating KYC regulations would face swift and decisive action.

A spokesperson for the EFCC explained that the commission has established a dedicated unit focused on fraud prevention and whistleblower protection within the extractive industry. This unit is tasked with ensuring compliance with relevant regulations and providing confidentiality and protection to whistleblowers under the Whistleblower Protection Bill.

“Fraud prevention and whistleblower protection are crucial in the extractive industry,” the spokesperson said. “We encourage the public to report any crimes related to this sector, assuring them of confidentiality and protection.”

Other speakers at the forum described the EFCC’s initiative as a significant step towards addressing the pervasive fraud and corruption in the extractive industry, which has resulted in significant revenue losses. They expressed hope that these efforts would restore transparency and accountability within the industry.

By reinforcing KYC compliance and encouraging public participation, the EFCC aims to restore integrity and prevent further revenue losses in the extractive sector.