EFCC Cautions Real Estate Players on Rising Money Laundering Risks

The Economic and Financial Crimes Commission (EFCC) has identified real estate as a growing avenue for laundering illicit funds, calling on developers to improve due diligence before engaging with clients.

Speaking in Abuja during a recent industry-focused forum, EFCC Chairman Ola Olukoyede emphasised that property transactions have become a convenient tool for hiding the origins of illegally acquired wealth. He noted that lax verification processes in the sector are enabling financial crimes to go undetected.

Without naming specific cases, Olukoyede said intelligence gathered by the commission shows that a significant number of suspicious property deals have taken place due to developers neglecting background checks on buyers.

He urged industry stakeholders to adopt Know Your Customer (KYC) practices as a basic safeguard, even in the absence of legal compulsion.

“Doing KYC shouldn’t be about ticking a legal box. It’s a business survival strategy,” he said, adding that firms that fail to verify sources of payment could be drawn into legal battles when properties are linked to criminal investigations.

According to him, any asset proven to have been purchased with stolen funds may be recovered, regardless of the seller’s awareness.

“Holding onto assets paid for with dirty money is not just bad for your business reputation, it could also have legal consequences,” he said.

Olukoyede also stressed the need for a culture shift towards regulatory compliance, describing it as a major factor that separates thriving economies from those in decline.

While warning of stricter enforcement, he reassured genuine developers that the EFCC’s role is not to stifle business, but to support clean practices that foster long-term growth and job creation.