EFCC Urges DNFBPs to Align Operations with Newly Enacted Money Laundering Prohibition and Prevention Act 2022

Richard Marley
August 18, 2022
3 minutes read
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EFCC has called on designated non-financial businesses and professions to conduct their dealings in line with the provisions of the newly enacted Money Laundering Prohibition and Prevention Act 2022

Ahmed Ghali, the Lagos Zonal Commander of the EFCC, gave the charge during the sensitization program organised by the Special Control Unit against Money Laundering (SCUML), for the implementation of the recently passed AML/CFT legislation.

According to Ghali, ”this sensitization is important because we do not want friction between the EFCC and DNFBPs, as we have seen in recent times. All that we are saying to you at this workshop is to comply with the requirements of the money laundering laws so that you will be able to transact your businesses with ease and not experience any sanctions from the EFCC.”

Ghali also availed the opportunity to urge them to cooperate with the EFCC and support the Commission in its sustained fight against terrorism financing and corruption in Nigeria.

“We want you, the non-financial business operators, to join us in sanitising the systems, eliminate any form of fraud and criminality and make sure that you are not being used as tools for money laundering,” he added.

As per the coordinator, SCUML, Lagos, Paschal Samu, said in his opening remarks that the program focused on refining the various DNFBPs such as hoteliers supermart operators, luxury product providers, casino operators, and car dealers on their roles in complying with Anti-money laundering law. He added that the EFFC must not hesitate on taking action against erring DNFBPs in line with provisions of the law.

According to EFCC Head Media and Publicity, Mr Wilson Uwujaren: Also speaking at a similar forum in Ilorin, the Zonal Commander, Michael Nzekwe, called on automobile dealers in Ilorin, the Kwara State Capital to ensure compliance with extant laws and regulations requiring registration and certification of their businesses by the Special Control Unit against Money Laundering, SCUML.

The Commander who was addressing members of the Kwara State Motor Dealers Association led by its President, Alhaji Ahmed Dare Abdul said, “apart from enforcing compliance with SCUML regulations, the EFCC under the new Money Laundering Act, MLA, has a legal responsibility in safeguarding the investment of stakeholders in the Non-Designated Financial Institutions, NDFIs, from the activities of fraudsters.”

Providing more insights on the operations of SCUML, the Zonal Commander stated, “Under the new MLA, SCUML is now to be fully under the EFCC”. He said part of its responsibilities was “to ensure compliance of DNFBPs including but not limited to car dealers, jewellery dealers, real estate managers, hoteliers and other stakeholders with the provisions of the law”.

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ASIC Expands its Team to Enhance Cryptocurrency Regulations
Australia’s financial regulator has enhanced the size of its crypto team. The crypto regulatory measures include their application for financial services licenses and show that specific crypto platforms have particular liquidity in reserve.

After shifting popular blockchain from a proof-of-work (PoW) to a proof-of-stake (PoS) system, ASIC, Australia’s financial regulator, has increased the size of its crypto team.

U.S. Security and Exchange Commission Chairman Gary Gensler stated that PoS-based tokens might be classified as securities.

The decision of ASIC to keep PoS tokens for example Ethereum, Cardano and Solana under its remit will further clarify the situation and enable crypto regulations to be more effective. To cope with the latest regulatory reforms, the crypto exchange must either delist the tokens or start complying with robust crypto laws.

Such moves may force a few crypto firms to manage their operating models. Even the largest stablecoin of the crypto market, Tether, has been caught in a controversy created over the failure of holding enough dollar reserves to back the stablecoin.

The crypto regulatory measures include their application for financial services licenses and show that these platforms have particular liquidity in reserve.

The final decision by the regulator has not been issued yet. Greg Yanco, the executive director for marketers, said that ASIC won’t be a “cheerleader for crypto assets.”

SEC Newgate carried out research the last November. It showed that 44% of Australian retail investors reported holding crypto. Out of these investors, only 20% viewed crypto as high-risk.

The chairperson of ASIC responded and said that the regulators were “concerned that there are limited protections for crypto-asset investments given they have become increasingly mainstream and are heavily advertised and promoted. There is a strong case for regulating crypto-assets to better protect investors.”

According to Yanco, until the last year, cryptocurrency was not such a high priority. Still, due to the decline of cryptocurrency in the previous few years and investors wiped out around the globe, ASIC expanded its team. It made crypto one of its “core strategic projects.”

Suggested Read: Regulatory Authorities to File a New Bill to Secure the Citizens from Cyber Criminal Activities

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The emerging technologies have not only helped businesses to secure their operations but also encouraged fraudsters to use more advanced techniques of exploiting loopholes in systems. The majority of digital service providers like Payoneer, Paypal, Amazon, Walmart, and many others have implemented stringent regulations to verify the documents of their users but traditional methods are not serving the purpose of authenticating the true identities of customers. In the UK alone, consumers lost £1.3 billion in 2021 which is 27% more compared to the previous year. Undoubtedly, it can be established that prevailing document verification measures are not efficient enough to curb sophisticated fraud methods used by criminals. The whole system is in dire need of forensic authentication which is more advanced and has all capacity to counter scammers.

All the digital service providers particularly financial companies, educational institutions, and immigration departments are at high risk of document fraud. The criminals use forged documents to claim funds, admissions to universities, or entry to foreign countries. By implementing standards of forensic forgery detection, all online businesses can secure their onboarding system with very less risks of scams. The forensic authentication of documents involves scientific techniques to verify the identities of users leaving no room for criminals.

How Forensic Document Verification is Carried Out?

Forensic document verification involves incorporation of scientific rules in examining the authenticity of records. There are experts in this field who carry out all the operations using specialized methods. Nowadays, the use of forensics is rising, especially in courts where no document is accepted without authentication. By using several techniques like handwriting identification, ultraviolet light sources, microscopes, photography, and infrared imaging in the laboratories, a document is verified. All the major jurisdictions have formed dedicated institutions which overlook the process of document verification. The American Board of Forensic Document Examiners (ABFDE) is the primary authoritative body responsible for monitoring forensic operations in the US, and any person carrying out these activities anywhere in the country must be a member of this board.

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The prevailing traditional methods of document verification have encouraged criminals to exploit loopholes in systems inflicting financial losses on users. In the recent past, several cases have surfaced where scammers try to manipulate documents resulting in credit card fraud, illegal immigration, fake admissions to international universities, and many others. Let’s have a look at some of the high-profile cases of document fraud in different countries.

Gang Arrested for Printing Fake Documents in Greece

European Police conducted a raid this year dismantling a criminal network involved in forgery and dissemination of counterfeit documents. The gang was using fake identities and helping people to apply for immigration in several European countries. The Police have seized 362 forged documents including ID cards, residence permits, passports, and asylum papers which were used in carrying out illicit activities. The law enforcement authorities have stated that criminals had support from other countries and investigations are still going on to catch all culprits.

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Canada

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Australia

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What Shufti Pro Offers?

Shufti Pro’s state-of-the-art identity verification services can help online businesses implement a robust solution against document fraud. Combating financial crimes through efficient record authentication will secure the identities of users and ensure compliance with global regulatory standards. Powered by thousands of AI algorithms Shufti Pro’s KYC solution uses advanced techniques like OCR and forensic document examination to verify documents in real-time. It generates output in less than a second with 98.67% accuracy.

Want to know more about forensic forgery analysis of documents for digital businesses?

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EFCC Urges DNFBPs to Align Operations with Newly Enacted Money Laundering Prohibition and Prevention Act 2022

Forensic Document Verification – A New Standard

How Forensic Document Verification is Carried Out?

High-Profile Crime Cases of Document Fraud

Gang Arrested for Printing Fake Documents in Greece

Criminal Network Busted for Distributing Fake Documents

Regulatory Authorities Monitoring Document Fraud

Canada

Australia

Document Forgery Forensic Authentication – Ensuring KYC Compliance

What Shufti Pro Offers?

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Let’s prove your customer’s

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