Illegal Mining: EFCC Urges Miners to Strengthen Compliance, Report Suspicious Transactions
The Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukoyede, has charged operators in Nigeria’s solid minerals sector to strengthen due diligence, Know Your Customer (KYC) procedures and regulatory compliance in the conduct of their businesses.
Olukoyede also directed miners to report all transactions involving Politically Exposed Persons (PEPs), regardless of the applicable reporting threshold.
He gave the charge while speaking at the maiden edition of the Rivers State Mining Summit, themed: “Repositioning the Mining Sector in Rivers State for Optimal Beneficiation of All Stakeholders.”
The EFCC Chairman was represented at the event by the Head of the Special Control Unit Against Money Laundering (SCUML), Port Harcourt Zonal Directorate, Chief Superintendent of the EFCC, CSE Audu Suji.
Olukoyede explained that compliance with KYC requirements would enable miners to properly identify and verify their customers, thereby helping to prevent corruption, money laundering and other financial crimes within the mining sector.
He said failure to comply with the relevant regulations attracts penalties.
“The law wants DNFBPs to begin to do KYC, just like financial institutions do. The purpose is to verify your identity with valid identity cards. And when you are selling, you should be sure of whom you are selling to.
“We don’t want to hear that your clients did something wrong and you were not able to provide information on them. As a matter of fact, there are penalties,” he said.
The EFCC boss further urged miners to exercise greater caution when dealing with customers, particularly Politically Exposed Persons.
He clarified that PEPs are not limited to politicians, explaining that the category includes persons holding prominent government positions, elected political office holders, their family members and close associates.
“Anybody holding a prominent government position is also a PEP. From the President down to Councillor, all the appointees are all PEPs, including their family members and close associates.
“So, when dealing with a PEP, carry out enhanced due diligence, because it is believed that they have access to public funds and there is a likelihood of abuse. Ensure enhanced due diligence on them, and that a report is filed on them on any transaction that occurs, not minding the threshold,” he said.
Olukoyede disclosed that the EFCC’s SCUML is among the agencies mandated by law to monitor and supervise Designated Non-Financial Businesses and Professions (DNFBPs), which include operators in the mining sector.
He noted that the EFCC’s monitoring and compliance activities in the sector contributed to Nigeria’s exit from the Financial Action Task Force (FATF) Grey List in 2025.
“Our duty is to ensure that all these businesses are monitored and duly registered with SCUML and are in compliance with the provisions of the AML/CFT regulations.
“We all know of the country’s exit from FATF’s Grey List last year. Nigeria was delisted from this list through the efforts of the EFCC, NFIU and other intelligence agencies,” he said.
In his remarks, the Chairman of the Miners Association of Nigeria, His Royal Highness Hope D.D. Opusingi, condemned illegal mining activities in the country.
He said mineral resources worth billions of naira were being illegally mined and exported daily, resulting in significant revenue losses for the Federal Government, state governments, local communities and legitimate mining operators.
Opusingi expressed appreciation to the EFCC and other regulatory agencies for their efforts and called for stronger collaboration to tackle illegal mining and protect the nation’s mineral resources.
