The Economic and Financial Crimes Commission, EFCC, has issued a stern warning to players in the extractive industry to comply with Know Your Customer, KYC, regulations or face severe consequences.
The warning is part of the commission’s efforts to combat fraud and corruption in the extractive industry and ensure compliance with relevant regulations.
Addressing the 117th edition of ‘EFCC Connect,’ an open forum with the public held on Wednesday in Abuja on X Spaces, ACE II Ahmed Lawal, Head of Proceeds of Crime Management at the EFCC’s Maiduguri Zonal Command, provided a detailed overview of various fraud schemes plaguing the extractive industry.
Lawal explained that fraud in the industry spans different segments, including upstream, midstream, and downstream sectors, resulting in significant revenue loss for the government and individuals.
He emphasized the importance of KYC compliance in preventing fraud and corruption, noting that the lack of due diligence on customers and suppliers can lead to illicit activities such as money laundering and terrorism financing.
The EFCC urged companies in the industry to obtain necessary permits and licenses and to conduct thorough due diligence on their customers and suppliers.
Lawal said, “The extractive industry is particularly vulnerable to fraud and corruption, with schemes spanning different segments, including upstream, midstream, and downstream. This can result in significant revenue loss for the government and individuals.
Know Your Customer (KYC) compliance is critical in preventing fraud and corruption. Companies must conduct thorough due diligence on their customers and suppliers to prevent illicit activities such as money laundering and terrorism financing.”
Source: Vanguard
