The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to Non-Governmental Organizations (NGOs) across the country, urging them to comply strictly with Nigeria’s Anti-Money Laundering (AML) and Terrorism Financing (CFT) regulations as outlined in the 2022 Act.
During a regulatory compliance seminar organised by Global Rights for civil society groups and NGOs in Ogun State on Tuesday, Monye Ekene, an Assistant Inspector with the EFCC, highlighted that NGOs must register with the Corporate Affairs Commission (CAC) and acquire the Special Control Unit Against Money Laundering (SCUML) certificate. Ekene emphasised that this certification, which can be obtained at no cost, is essential for NGOs to fully align with national security and anti-crime efforts.
“NGOs are required by law to maintain detailed records of their donations, operations, and personnel,” Ekene noted, stressing the importance of screening donors, staff, and board members to prevent any associations with criminal or terrorist organisations. The law also mandates NGOs to report suspicious transactions and submit comprehensive quarterly and annual reports to the EFCC.
The EFCC representative also clarified that these legal requirements are designed to ensure transparency and prevent illicit financial activities within the NGO sector. He further cautioned that any organisation found lacking in due diligence may face severe penalties.
Meanwhile, Mr. Damilola Decker, Programme Manager at Global Rights, spoke about the regulatory challenges facing civil society organisations. He pointed out that while the government’s oversight is crucial, the current landscape is fraught with complications as multiple agencies impose overlapping regulations on NGOs.
“It’s essential for government regulations to create an environment where NGOs can thrive,” Decker said. “While regulation is necessary, the current situation often leads to confusion and duplication of efforts, which can hinder the vital work these organizations are doing to improve lives across the country.”
Decker, whose organisation is supported by the European Union, also emphasised the need for clearer guidelines to reduce bureaucratic obstacles for civil society groups. The ongoing training program, which spans multiple states including Ogun, Oyo, Osun, Ebonyi, Anambra, Akwa Ibom, and Cross Rivers, intends to enhance NGOs’ understanding of the legal framework and ensure their compliance with national laws.
“We want NGOs to be fully informed about the regulations governing their operations so they can stay compliant and continue their important work without falling into legal trouble,” Decker concluded.
