KEY POINTS
- Chairman warns developers could forfeit proceeds of crime.
- Calls for KYC and compliance to curb illicit transactions.
- EFCC Flags Money Laundering Surge in Nigeria’s Real Estate Sector
Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, has raised concerns over the rising incidence of money laundering in Nigeria’s real estate sector, calling out estate developers as key enablers due to their failure to conduct proper background checks on investors.
In a speech titled “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents” delivered Wednesday in Abuja, Olukoyede warned that the EFCC had identified a pattern of illicit funds being funneled through property transactions.
“Based on what we’ve gathered empirical data, field reports, and investigations money laundering is rampant among real estate stakeholders,” Olukoyede said. “Developers must start doing Know Your Customer (KYC) checks, even if it’s not legally mandatory yet.”
EFCC warns of asset recovery for illegal deals
The EFCC boss cautioned that developers who fail to verify the sources of their clients’ income risk serious repercussions, including asset seizures.
“If someone launders money through your property and we trace the funds to you, we’ll recover it from you. You can’t sit on criminal proceeds,” he warned.
Olukoyede argued that Nigeria’s lack of regulatory compliance remains a major factor enabling financial crimes. “The difference between our country and developed ones is simple: they follow the rules. We don’t,” he added.
EFCC offers support to legitimate developers
Despite the stern warning, Olukoyede assured real estate players that the commission would support legitimate business operations. “Our job isn’t to shut down your business it’s to help you succeed. Because when you grow, you create jobs, and fewer Nigerians turn to crime,” he said.
He called on developers to cooperate with the EFCC, promising open-door access and support from the agency. “We’re not out to destroy your business. Work with us,” he concluded.
