EFCC Launches Major Probe Into Money Laundering in Nigeria's Real Estate Sector
The Economic and Financial Crimes Commission (EFCC) has announced a comprehensive probe into Nigeria's real estate sector, which it has identified as a significant hub for money laundering. The announcement was made by EFCC Chairman Ola Olukoyede during a recent policy dialogue in Abuja. The investigation is part of a renewed effort to combat corruption and illicit financial flows within the country.
Key Details of the Investigation:
Initial Focus: The probe will begin in the Federal Capital Territory (FCT), Abuja, where a large number of suspicious, abandoned properties have been identified. The objective is to identify the true owners of these properties and trace the sources of their funding to determine if they were acquired with illicit funds.
The Problem: Chairman Olukoyede highlighted that many unfinished estates in Abuja are the result of corrupt civil servants who used stolen public funds to finance their construction. When these officials lose their positions or their illegal income is cut off, the projects are left abandoned.
Warning to Developers and Agents: The EFCC Chairman issued a strong warning to real estate developers and agents, stating that they must conduct thorough "Know Your Customer" (KYC) checks on their clients. He emphasized that ignorance will not be a defense; if a property is traced to stolen funds, the EFCC will seize it from the developer, even if the developer claims no prior knowledge of the illicit origin of the money.
Legal and Regulatory Framework: The EFCC is reinforcing the enforcement of the Money Laundering (Prevention and Prohibition) Act, 2022. This includes working closely with the Special Control Unit Against Money Laundering (SCUML), which has been granted full regulatory and enforcement powers to sanction non-compliant businesses.
New Enforcement Measures: To tackle the issue head-on, the EFCC is implementing new measures:
Monitoring Team: A dedicated team will be set up to visit estates across the country to collect data on ownership and funding.
Property Ownership Register: The agency plans to create a comprehensive, centralized register of property owners to increase transparency in the sector.
Beneficial Ownership Register: The EFCC will collaborate with the Corporate Affairs Commission (CAC) to activate the Beneficial Ownership Register, which will help unmask the real owners of properties acquired through shell companies.
Reassurance for Legitimate Businesses: While promising stern action against criminals, Chairman Olukoyede also provided reassurance to legitimate developers and investors. He clarified that the EFCC's goal is to sanitize the sector and create a transparent, secure environment that protects the economy from criminal infiltration, rather than stifling legitimate business growth.
