Mkpoikana UdomaPort Harcourt — The Economic and Financial Crimes Commission, EFCC, has warned dealers in precious metals and stones to operate strictly within the law, citing the increasing link between illicit mining, gold smuggling, and the financing of criminal activities in Nigeria’s solid minerals sector.
Speaking during a one-day capacity-building workshop organised in collaboration with the German Agency for International Cooperation, GIZ, the Sokoto Zonal Coordinator of the Special Control Unit against Money Laundering, SCUML, Ahmadu Bello, said the Commission is intensifying oversight of dealers in the sector to curb the misuse of mineral wealth for illicit financial flows.
“The solid minerals sector is becoming a high-risk channel for money laundering and terrorism financing,” Bello stated.
“Dealers in Precious Metals and Stones, DPMS, must understand that they trade in transferable items of great value, which makes them attractive to criminal networks. We expect full compliance with the Anti-Money Laundering and Countering Financing of Terrorism laws.”
Bello expressed concern over the growing wave of illegal mining in parts of northern Nigeria, particularly Zamfara, Kebbi, and Niger States, describing it as one of the underlying drivers of insecurity in the region.
“Illegal gold mining has been identified as one of the underlying drivers of conflict in the North, especially in Zamfara and recently Niger states,” he said. “When these activities go unchecked, they not only rob the nation of revenue but also fund banditry and terrorism.”
He warned that any dealer found violating the Money Laundering (Prevention and Prohibition) Act, 2022, would face severe sanctions, including prosecution, revocation of licenses, and forfeiture of assets linked to unlawful trade.
The Zonal Coordinator reminded participants — drawn from Sokoto, Zamfara, and Kebbi states — of their obligations as Designated Non-Financial Businesses and Professions under the law.
“Every dealer must establish internal policies, procedures, and control mechanisms to identify, monitor, and report suspicious transactions,” Bello explained.
“You must conduct proper customer due diligence proportional to the risk level and render Cash Transaction Reports, CTRs, and Suspicious Transaction Reports, STRs, to SCUML as required.”
He added that compliance is not only a legal duty but also a safeguard against reputational and financial damage. “If you operate transparently, you will not only avoid sanctions but also strengthen investor confidence in the solid minerals sector,” he noted.
During the workshop, participants were taken through the objectives of the Money Laundering (Prevention and Prohibition) Act, 2022, offences and penalties, and the functions of SCUML offices nationwide. The session also highlighted key limitations on cash payments, customer identification standards, and the importance of reporting suspicious transactions promptly.
Bello commended the German development agency, GIZ, for partnering with SCUML to raise awareness and build capacity among dealers in the solid minerals trade. He said such collaborations were critical in sanitising Nigeria’s extractive industries and ensuring compliance with international financial standards.
“We are building a culture of accountability in the solid minerals value chain,” Bello affirmed. “Transparency and compliance must be the hallmark of every legitimate dealer operating in this country.”
The workshop, which drew participants from across the North-West region, is part of EFCC’s ongoing efforts to curb illicit financial flows linked to gold and other mineral exports, while positioning the sector as a credible revenue earner for Nigeria’s economy.
