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The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr Ola Olukoyede, has charged operators in the solid minerals sector to strengthen due diligence, Know Your Customer (KYC) procedures and regulatory compliance, particularly when dealing with politically exposed persons (PEPs).
Olukoyede also directed miners to report all transactions involving PEPs, regardless of the transaction threshold, warning that failure to comply with the relevant anti-money laundering regulations would attract sanctions.
He 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 at the event by the Head of the Special Control Unit Against Money Laundering (SCUML), Port Harcourt Zonal Directorate of the EFCC, Chief Superintendent of the EFCC, CSE Audu Suji, said strict compliance with KYC and other regulatory requirements would help prevent corruption, money laundering and other economic and financial crimes in the sector.
He said: “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.”
The EFCC chairman urged miners to exercise greater caution and carry out enhanced due diligence when dealing with their clients and customers, particularly PEPs.
He explained that the classification of PEPs was not restricted to politicians, but included persons occupying prominent government positions, elected public officials, their family members and close 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.
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“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. Ensure enhanced due diligence on them, and that a report is filed on any transaction that occurs, not minding the threshold,” he said.
Olukoyede disclosed that SCUML was one of the agencies saddled by law with the responsibility of monitoring and supervising Designated Non-Financial Businesses and Professions (DNFBPs), which include operators in the mining sector.
He said effective monitoring of the sector and enforcement of compliance requirements by the EFCC contributed 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.
“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.
Also speaking, the Chairman of the Miners Association of Nigeria, Hope D.D. Opusingi, condemned illegal mining, saying mineral resources worth billions of naira were being illegally mined and exported daily.
He regretted that the development had resulted in huge revenue losses to the Federal Government, state governments, local communities and legitimate operators in the mining sector.
Opusingi expressed appreciation to the EFCC and other regulatory agencies for their efforts and called for stronger collaboration among stakeholders to tackle illegal mining and protect Nigeria’s mineral resources.
