SCUML and REDAN tighten anti-money laundering rules for Nigerian property developers

Real estate operators in Nigeria have been told to strengthen their anti-money laundering safeguards as the Special Control Unit Against Money Laundering (SCUML) and the Real Estate Developers Association of Nigeria (REDAN) move to tighten compliance across the sector.

SCUML warned that registration with regulatory authorities alone was not sufficient, insisting that operators must integrate anti-money laundering compliance into day-to-day business activities amid concerns over the sector's vulnerability to financial crimes.

The position was canvassed at a stakeholders' engagement between SCUML and REDAN focused on Nigeria's Mutual Evaluation readiness, risk-based supervision, beneficial ownership transparency and customer due diligence.

Speaking for SCUML, Assistant Commander of the Economic and Financial Crimes Commission, Ibinabo Amachree, said real estate operators carry a strategic responsibility to protect the integrity of Nigeria's financial system because of the sector's exposure to money laundering and other financial crime risks. She listed institutional risk assessment, customer and beneficial ownership checks, identification of politically exposed persons, sanctions screening, effective internal controls and timely reporting among the obligations operators must observe.

The Chairman of REDAN's Lagos State chapter, Tony Kolawole, pledged the association's support for SCUML's efforts to ensure compliance with Anti-Money Laundering, Counter Financing of Terrorism and Counter Proliferation Financing requirements. The engagement also gave operators a chance to raise regulatory and operational challenges, with participants calling for sustained dialogue between regulators and the industry as Nigeria prepares for its Mutual Evaluation.