Login Register
feel free to call 09056000005

EFCC Targets Real Estate Investors Over Money Laundering

The Economic and Financial Crimes Commission (EFCC) is tightening regulations on estate surveying and valuation firms, mandating them to subscribe to an alert system and conduct thorough customer screenings. This increased scrutiny aims to curb money laundering, but it is also affecting transactions in the commercial real estate market, reports CHINEDUM UWAEGBULAM.
 
The heightened vigilance by security agencies has dampened the demand for real estate in major cities, particularly high-end properties. The situation escalated when the EFCC notified the president of the Nigerian Institution of Estate Surveyors and Valuers (NIESV) about enforcing regulations for targeted financial sanctions related to terrorism financing and other measures. This enforcement is part of the Terrorism Prevention and Prohibition Act, 2022.
 
A letter signed by SCUML Director, Daniel Isei, highlighted the obligation of Designated Non-Financial Business and Profession (DNFBP) entities to implement these sanctions. The regulations require estate surveying and valuation firms to subscribe to the Nigeria Sanction Committee alert system and conduct sanction screenings before onboarding new customers.
 
EFCC Acting Director of the Lagos Zonal Command, Michael Wetkas, emphasized the necessity of registering with SCUML to monitor and mitigate the risk of real estate operators being exploited by money launderers and terrorism financiers. The law provides a robust framework to support the fight against these crimes.
 
The Guardian reports that the EFCC's Special Control Unit Against Money Laundering (SCUML) has caused a slowdown in the market as prospective investors and Nigerians abroad avoid unnecessary encounters with the economic watchdog.
EFCC clamps down on real estate investors over money laundering
 
 
A recent report revealed that after the Nigerian government reached an agreement with the United Arab Emirates (UAE) on looted funds, there were allegations of war profiteers and terror financiers investing in Dubai’s real estate. The report identified suspicious purchases worth $100 million and traced over 800 properties valued at $400 million to Politically Exposed Persons (PEPs) in Nigeria.
 
Matthew Page, an associate fellow at Chatham House, highlighted the significant real estate holdings of former Nigerian officials in Dubai and the UK. He urged investigators to compare these investments to their known assets and incomes and scrutinize third-party payments.
 
A report by the Civil Society Legislative Advocacy Centre (CISLAC) exposed high-level money laundering in Nigeria's real estate sector. It noted that corrupt individuals use estate firms to conceal illicit funds. The report indicated that over 95% of the market is controlled by informal agents, some of whom operate in foreign jurisdictions or tax havens.
CISLAC’s report called for improved transparency and enforcement in the sector to address these issues, including the imposition of property taxes on unoccupied properties in major cities like Abuja, Lagos, and Port-Harcourt. The report also pointed out that inflated real estate prices due to laundered money have made Lagos one of the most expensive cities in Africa.
 
Estate surveyors and valuers acknowledge that EFCC’s oversight has impacted the sector. Mr. Gbenga Ismail, Chairman of the Lagos branch of NIESV, noted that the scrutiny has particularly affected high-priced real estate assets, leading to a slowdown in investment-related transactions.
Ultimately, while the increased regulation may temporarily slow down deals, it could enhance compliance, credibility, and stability in the long run. The luxury and high-end property segments, which involve larger transactions, are likely to feel the most significant impact due to their susceptibility to irregularities and heightened regulatory attention.

Similar Topics

The Lagos State Government, through the Lagos State Physical Planning Permit Authority (LASPPPA),...

5 days ago Read More

The Federal Government has expanded the Abuja-Kaduna-Kano Road project to incorporate a direct...

11 days ago Read More

The Federal Capital Territory Administration (FCTA) has taken possession of Wadata Plaza, the...

19 days ago Read More

Defaulters on FCT ground rent now have 14 days grace to pay up what they owe the FCT Administration...

19 days ago Read More

Unprofessional practices by estate agents in major cities are significantly influencing the spike...

a month ago Read More

A Real estate development firm, Lifecard International Investment Company, has revealed that many...

a month ago Read More

Despite a fall in investment volumes from the 2021 peak, there is an ongoing desire for property...

a month ago Read More

The Lagos State government has advised the leadership of the Nigerian Institution of Estate...

a month ago Read More

Real estate market dynamics such as construction cost, land, finance, government policies and taxes...

a month ago Read More

Event Set to Celebrate Managers Who Shape Careers and Drive Organizational Growth   Business...

2 months ago Read More

Global Leaders to Converge in Lagos for Landmark Event Driving Urban Innovation and...

2 months ago Read More

In a bold move to redefine affordable luxury housing, Nigerian real estate giant Gtext Holdings has...

3 months ago Read More

Industry Experts Urge Anti-Corruption Measures, Innovative Financing to Address Crisis By: Oche...

3 months ago Read More

LAGOS, NIGERIA – Global real estate consultancy Knight Frank and UK developer Mount Anvil...

3 months ago Read More

By Oche Onum Lagos, Nigeria As Nigeria’s real estate sector braces for 2025, rapid...

3 months ago Read More

By Oche Onum Abuja, Nigeria In a landmark move to combat climate vulnerabilities in urban...

3 months ago Read More

LAGOS, NIGERIA The Federal Government announced plans Wednesday to establish a Real Estate...

3 months ago Read More

According to The Guardian's investigation, 70% of Nigerian states rely on manual land...

3 months ago Read More

What is the Initiative? The Federal Government of Nigeria has unveiled an N100 billion private...

4 months ago Read More

Abuja, Nigeria’s gleaming administrative capital, has long symbolized hope for migrants...

4 months ago Read More