Section 17(2)(a) of Nigeria’s Money Laundering (Prohibition) Act (MLPA) generally refers to the requirement for Designated Non-Financial Businesses and Professions (DNFBP) to register and get certified by the Special Control Unit against Money Laundering (SCUML) to comply with anti-money laundering laws, ensuring they implement customer due diligence (CDD) and report suspicious activities. This section mandates that these businesses (like accountants,consultants,lawyers, real estate agents, luxury dealers.Etc.) identify customers and monitor transactions, especially high-value ones, to prevent financial crimes.
SCUML is a unit of the Economic and Financial Crimes Commission (EFCC).
Key Aspects of Section 17(2)(a) & Related Provisions:
- Registration with SCUML: DNFBPs without their own regulatory bodies must register with SCUML for market control and background checks.
- Customer Due Diligence (CDD): They must verify customer identities and update info before establishing relationships or conducting transactions above set thresholds (e.g., $1,000).
- Suspicious Transaction Reports (STRs): Reporting transactions that seem unusual, complex, or lack clear lawful purpose to SCUML.
- Record Keeping: Maintaining transaction records for at least five years for potential audits.
- Scope: This applies to various DNFBPs, including lawyers, accountants, car dealers, hotels, casinos, and jewelers, as designated by regulators.
In essence, this section ensures DNFBPs act as gatekeepers, preventing illicit funds from entering the financial system by requiring them to follow strict identification and reporting rules.
