The Economic and Financial Crimes Commission (EFCC) has raised concerns over rampant money laundering in Nigeria’s real estate sector, citing estate developers as major enablers due to poor customer vetting.
According to a statement shared on the EFCC’s official social media platforms on Wednesday, Chairman Ola Olukoyede urged real estate developers to perform thorough background checks on investors to verify the legitimacy of their funds.
Speaking in Abuja at an event titled “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents,” Olukoyede emphasized the scale of the issue.
“Based on data and what we’ve observed, money laundering is alarmingly widespread among real estate developers and stakeholders,” he said.
He advised developers to prioritize Know Your Customer (KYC) protocols even if not legally mandated.
“Even if it’s not compulsory by law, do it for the survival of your business,” he stressed.
Olukoyede warned that developers who sell property to individuals using illicit funds could face serious consequences.
“If someone buys property from you with stolen money and we trace it to you, we will recover it. You can’t hold on to the proceeds of crime,” he cautioned.
He also pointed out that compliance with regulations is what separates functioning systems in developed countries from those in Nigeria.
“Many developers don’t even understand the regulations. But for your business to thrive, you must play by the rules.”
Despite the strong warnings, Olukoyede assured legitimate developers of the EFCC’s support.
“Our goal is to help your business succeed. A thriving business means more jobs for Nigerians, which reduces the temptation to commit financial crimes.”
He encouraged industry collaboration with the EFCC, promising openness and accessibility.
“Our doors are open. We’re not here to shut your business down,” he said.
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