The Executive Chairman of the Economic and Financial Crimes Commission, EFCC, Mr Ola Olukoyede, has charged solid minerals miners to enhance due diligence and Know Your Customer (KYC) compliance with regulations and report all transactions involving politically exposed persons (PEPs) in the conduct of their businesses.
He gave the charge a few days ago, while speaking at the maiden edition of Rivers State Mining Summit themed: “Repositioning the Mining Sector in Rivers State for Optimal Beneficiation of All Stakeholders.”
According to Olukoyede, who was represented by the Head, Special Control Unit Against Money Laundering, SCUML of the Port Harcourt Zonal Directorate of the EFCC, Chief Superintendent of the EFCC, CSE Audu Suji, these steps would ensure the mitigation of corruption and economic and financial crimes in the sector, adding that failure to comply attracts consequences.
“The law wants DNFBPs to begin to do KYC, just like financial institutions do. The purpose is to verify your identity with valid identity cards. And when you are selling, you should be sure of whom you are selling to. We don’t want to hear that your clients did something wrong and you were not able to provide information on them. As a matter of fact, there are penalties,” he said.
The EFCC boss observed that miners needed to exercise a great deal of caution, ensuring due diligence while dealing with their clients and customers and urged the association to be even more cautious, particularly when it comes to PEPs. Politically Exposed Persons, he said, do not necessarily mean politicians, but every government appointee and all those elected into political offices and their associates.
“Anybody holding a prominent government position is also a PEP. From the President down to Councillor, all the appointees are PEPs, including their family members and close associates. So, when dealing with a PEP, carry out enhanced due diligence, because it is believed that they have access to public funds and there is a likelihood of abuse, so ensure enhanced due diligence on them, and that a report is filed on them on any transaction that occurs, not minding the threshold,” he said.
He disclosed that EFCC’s SCUML is one of the agencies saddled by law with the responsibility to monitor and supervise activities related to Designated Non-financial Institutions, Businesses and Professions, DNFBPs, which comprise the mining sector. He further noted that adequate monitoring of the mining sector for compliance by the EFCC contributed to Nigeria’s exit 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. We all know of the country’s exit from FATF’s Grey list last year. Nigeria was delisted from this list through the efforts of the EFCC, NFIU and other intelligence agencies,” he said.
The Chairman, Miners Association of Nigeria, His Royal Highness Hope D.D Opusingi, in his remarks,s condemned illegal mining, noting that mineral resources worth billions of naira are being mined illegally and exported daily, which he regretted has led to loss of revenue for the government at all levels, the local communities and the Association.
He expressed gratitude to the EFCC and other regulatory agencies and called for enhanced collaboration to combat the activities of illegal miners.
