EFCC warns miners against money laundering, demands strict customer checks

Stanley Ihedigbo

Economic and Financial Crimes Commission (EFCC) has urged operators in Nigeria’s solid minerals sector to strengthen customer verification, comply with anti-money laundering regulations and report transactions involving Politically Exposed Persons (PEPs), regardless of the transaction threshold.

The EFCC Chairman, Ola Olukoyede, gave the charge at the maiden edition of the Rivers State Mining Summit, themed “Repositioning the Mining Sector in Rivers State for Optimal Beneficiation of All Stakeholders.”

Olukoyede, who was represented by the Head of the Special Control Unit Against Money Laundering (SCUML), Port Harcourt Zonal Directorate, Chief Superintendent of the EFCC, Audu Suji, said strict compliance with regulatory requirements would help curb corruption and other financial crimes in the mining industry.

He warned that businesses that failed to comply with the relevant regulations could face penalties, stressing the need for miners to verify the identities of their customers and maintain adequate transaction records.

“The law wants Designated Non-Financial Businesses and Professions (DNFBPs) to begin to do Know Your Customer (KYC), just like financial institutions do. The purpose is to verify your identity with valid identity cards,” he said.

According to him, miners must establish the identities of their customers before conducting business and ensure they can provide relevant information about them whenever required by the authorities.

He cautioned operators against dealing carelessly with customers without conducting the necessary checks, noting that regulatory compliance was essential to preventing the mining sector from being exploited for illicit financial activities.

Miners urged to exercise caution in PEP transactions

The EFCC chairman particularly advised miners to exercise enhanced due diligence when dealing with Politically Exposed Persons, explaining that the category extends beyond elected politicians to include individuals occupying prominent public positions.

He said government appointees, elected public officeholders, their family members and close associates could fall within the PEP category under applicable regulatory requirements.

Olukoyede noted that such individuals required additional scrutiny because of their potential access to public funds and the associated risks of abuse.

“Anybody holding a prominent government position is also a PEP. From the President down to councillor, all the appointees are all PEPs, including their family members and close associates,” he said.

He urged miners to conduct enhanced due diligence on such customers and report transactions involving them, irrespective of the applicable threshold.

The EFCC boss explained that the commission’s SCUML unit was among the agencies legally mandated to monitor and supervise Designated Non-Financial Businesses and Professions, including operators in the mining sector.

He said the unit was responsible for ensuring that businesses within its regulatory remit were duly registered and complied with applicable anti-money laundering and counter-terrorism financing regulations.

According to him, effective monitoring of the mining sector, alongside the contributions of other relevant agencies, formed part of the efforts that led to Nigeria’s removal from the Financial Action Task Force (FATF) Grey List in 2025.

“Our duty is to ensure that all these businesses are monitored and duly registered with SCUML and are in compliance with the provisions of the AML/CFT regulations,” he said.

He attributed Nigeria’s removal from the list to the collective efforts of the EFCC, the Nigerian Financial Intelligence Unit (NFIU) and other intelligence agencies.

Miners’ Association condemns illegal mining

In his remarks, the Chairman of the Miners Association of Nigeria, His Royal Highness Hope D.D. Opusingi, condemned illegal mining activities, lamenting the loss of revenue arising from the unauthorised extraction and exportation of the country’s mineral resources.

Opusingi said mineral resources worth billions of naira were allegedly being mined illegally and exported daily, depriving the federal, state and local governments of revenue.

He added that the activities also negatively affected local communities and the association, while undermining efforts to develop a properly regulated mining industry.

The association chairman expressed appreciation to the EFCC and other regulatory agencies for their interventions and called for stronger collaboration to tackle illegal mining.

He stressed the need for sustained cooperation among miners, government agencies and other stakeholders to protect the country’s mineral resources, improve revenue generation and ensure that the benefits of mining reached host communities.

The summit provided a platform for discussions on regulatory compliance, accountability, sustainable mining practices and the need to maximise the economic benefits of Rivers State’s solid mineral resources.