By Muyideen Aliyu
The Special Control Unit Against Money Laundering (SCUML) of the Economic and Financial Crimes Commission (EFCC) has charged Non-Profit Organizations (NPOs) and Civil Society Organizations (CSOs) to prevent the misuse of their platforms for terrorism financing and money laundering.
This charge was delivered by Tope Erinlomo, the Technical Adviser to the Director of SCUML, during a sensitization programme held in Ilorin for members of various NPOs and CSOs.
Erinlomo noted that because these organizations occupy strategic positions in society, they must remain vigilant against individuals with ulterior motives who seek to exploit them for illicit activities.
He explained that the programme was specifically designed to equip these groups with the necessary knowledge to identify and prevent financial crimes.
He further emphasized that the Money Laundering (Prevention and Prohibition) Act 2022 underscores the importance of proper record-keeping. Under Section 8 of the Act, financial institutions and Designated Non-Financial Businesses and Professions (DNFBPs), including NGOs, are mandated to preserve transaction records and customer identification documents for a minimum of five years to ensure transparency and regulatory accessibility.
Participants were urged to conduct thorough identification of donors and personnel as part of their Know Your Customer (KYC) obligations.
Erinlomo explained that NGOs and NPOs must verify the identities of donors, beneficiaries, and partners using reliable documentation, such as valid identification and proof of address.
He also stressed the necessity of performing due diligence on employees and volunteers to ensure they are not linked to criminal financial networks. By maintaining accurate records and monitoring internal operations, organizations can better protect themselves from internal and external abuse.
The SCUML official further encouraged organizations to conduct regular risk assessments to detect attempts by criminal elements to exploit their platforms.
He noted that enhanced due diligence is particularly necessary in cases involving large or unusual donations, foreign contributors, or politically exposed persons.
One participant, Musa Aliyu, commended the EFCC for the initiative, noting that the fight against terrorism financing requires collective effort and active collaboration between stakeholders and the commission to curb the menace effectively.