SCUML REGISTRATION IN NIGERIA
SCUML REGISTRATION IN NIGERIA
As a business owner in Nigeria, it is important to understand the legal requirements for operating in the country. One of these requirements is registering with the Special Control Unit Against Money Laundering (SCUML). In this article, we will explain what SCUML registration is, why it is important, and the steps you need to take to register your business.
SCUML is an Economic and Financial Crimes Commission (EFCC) unit in charge of monitoring and preventing money laundering and other financial crimes relating to the activities of Designated Non-Financial Institutions (DNFIs) in Nigeria. Designated Non-Financial Institutions (DNFIs) are defined by Section 25 of the Money Laundering (Prohibition) Act to include dealers in estate development, real estate, estate surveyors, estate valuers, estate agents, jewelry, precious stones and metals, cars, and luxury goods; Chartered Accountants, Audit Firms, Tax Consultants, Clearing and Settlement Companies, Hotels, Casinos, Supermarkets, Dealers in Mechanized Farming Equipment and Machineries, Practitioners of Mechanized Farming, Non-Governmental Organizations (NGOs); or such other businesses as the Federal Ministry of Trade and Investment or appropriate regulatory authorities may from time to time designate.
In order to operate legally in Nigeria, businesses that are DNFIs must register with SCUML and comply with the regulations.
Why is SCUML registration important?
SCUML registration is important for several reasons. Firstly, it is a legal requirement for businesses that are DNFIs operating in Nigeria. Failure to register with SCUML can result in fines and penalties. Also, any DNFI that fails to register with SCUML may be ineligible to maintain bank accounts in Nigeria.
In addition, SCUML registration helps protect your business from being used for money laundering or other financial crimes. By implementing internal controls and reporting suspicious activities, businesses can prevent themselves from being used as a conduit for illegal activities.
Furthermore, SCUML registration can also benefit your business in the long run. By demonstrating compliance with anti-money laundering regulations, your business can gain credibility and trust from customers, partners, and other stakeholders. This can lead to increased business opportunities and partnerships.
Businesses that require SCUML registration
- Dealers in jewelry, cars, and luxury goods, precious stones and metals,
- Real estate, Estate Developers, Estate Surveyors and Valuers, Estate Agents,
- Chartered Accountants, Audit Firms, Tax Consultants,
- Clearing and Settlement Companies,
- Hotels, Casinos, Supermarkets,
- Dealers in Mechanized Farming Equipment and Machineries,
- Practitioners of Mechanized Farming,
- Non-Governmental Organizations (NGOs) or such other businesses as the Federal Ministry of Trade and Investment or appropriate regulatory authorities may from time to time designate.
All DNFIs are mandated to register under SCUML so that their activities can be monitored as this is to prevent fraudulent activities. These activities are regarded as transactions, provided it is a service rendered and paid for, i.e. currency (cash transactions).
What documents are required for SCUML?
Before an applicant can proceed with registration with SCUML, certain documents should be scanned for upload depending on the kind of company the applicant operates. The documents are:
- Certificate of Incorporation
- Article and Memorandum of Association
- Tax Clearance Certificate (Not Applicable to NGOs).
- Audited Financial Report
- Authorized Operational License (Not Applicable to NGOs).
- Company/Organization Profile
- Constitution (For NGOs Only)
- Agreement Signed between the NGO and the National Planning Commission ( For International NGOs Only)
SCUML Registration
Registration for the Special Control Unit on Money Laundering Certificate is an online process.
How to Register with SCUML Online
The steps to be taken to complete registration with SCUML are:
Step One
Log on to the SCUML website and click the register online tab.
Step Two
The page redirects to a registration page where the form is. The form is to be duly filled with correct and up-to-date information. The registration form can be downloaded here.
Step Three
The required documents are then uploaded to the portal and the application is complete.
Obtaining the SCUML Certificate
Upon successful application by the DNFI, the company is contacted to that effect to pick up the SCUML certificate which is evidence that the business or institution has been duly registered with SCUML. The original copy of the Certificate of Incorporation is to be presented for scrutiny before the certificate can be obtained.
In compliance with the provisions of the various laws and regulations guiding money laundering and financing of terrorist activities, every DNFI is advised to have a Compliance Officer. A Compliance Officer is an officer at the management level who will coordinate AML/CFT activities within the DNFI and liaises with SCUML
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