EFCC Raises Alarm Over Money Laundering in Real Estate Sector

The Economic and Financial Crimes Commission (EFCC) has raised serious concerns over the growing use of Nigeria’s real estate sector as a conduit for money laundering, blaming the trend on poor due diligence by estate developers.

In a statement shared via the Commission’s official social media handles on Wednesday, EFCC Chairman, Ola Olukoyede, urged real estate developers to conduct thorough background checks on investors to verify the legitimacy of their funds.

Speaking in Abuja at an event themed “Tackling Illegal Property Sales, Fake Developers, and Unlicensed Agents” Olukoyede said intelligence and data gathered by the agency revealed that money laundering was “rampant” among players in the real estate space.

Citing the need for Know Your Customer (KYC) practices, he noted, “As a developer, KYC must be your first step. Even if the law doesn’t mandate it yet, it is critical for the protection and survival of your business.”

He warned that failure to vet investors could have legal consequences, stressing that developers could be held accountable if proceeds of crime are traced to them.

“If someone steals money and buys property from you, and we trace it to you, we will recover it because you cannot benefit from the proceeds of crime,” he said.

Olukoyede lamented that many developers operate without fully understanding regulatory frameworks, which he said contributes to systemic breakdowns. He emphasized that compliance with existing laws remains the key difference between developing nations and more structured economies.

While issuing stern warnings, the EFCC boss also reassured law-abiding developers of the agency’s support, saying, “Our role is to help you succeed. A thriving real estate sector creates jobs, and the more people are employed, the less likely they are to resort to financial crimes.”

He encouraged continued collaboration with the EFCC, adding, “Our doors are open. We are not out to ruin your business.”