Many businesses encounter hurdles when opening a corporate bank account in Nigeria. This is usually caused by the absence of a crucial compliance documentation – SCUML certificate.
This certificate is very often requested by banks when opening certain business corporate accounts. It is also requested when processing certain compliance documentations. The nature of a business determines if SCUML is a compliance requirement or not.
This article breaks down in understandable bits a complete guide to SCUML Certificate Registration in Nigeria. By the end of this article, you will understand what SCUML is, who issues and who must obtain SCUML, why it is important and how to obtain SCUML in Nigeria.
Table of Contents
WHAT IS SCUML?
Special Control Unit Against Money Laundering (SCUML) is a regulatory agency under the Economic and Financial Crime Commission (EFCC) established in line with Section 17(1) of the Money Laundering (Prevention and Prohibition) Act, 2022.
SCUML is responsible for monitoring, supervising, and regulating Designated Non-Financial Businesses and Professions (DNFBPs) to ensure they are not used as tools for money laundering or terrorism financing.
WHO ISSUES SCUML CERTIFICATE?
SCUML Certificate is issued by the Economic and Financial Crime Commission (EFCC) through SCUML. In a bid to prevent and monitor money laundering and other illicit financial activities and as part of Nigeria’s anti-money laundering and counter-terrorismfinancing framework, the EFCC mandates that DNFBPs register with the unit and obtain a SCUML Certificate.
WHO NEEDS SCUML CERTIFICATE?
SCUML certificate must be obtained by Designated Non-financial Businesses and Professions (DNFBPs), and section 30 of the Act provides in details the businesses and professions falling under this category. They are:
- i. automotive dealers
- ii. businesses involved in the hospitality industry
- iii. casinos
- iv. clearing and settlement companies
- v. consultants and consulting companies
- vi. dealers in jewelries
- vii. dealers in mechanised farming equipment, farming equipment and machineries
- viii. dealers in precious metals and precious stones
- ix. dealers in real estate, estate developers, estate agents and brokers
- x. high value dealers
- xi. hotels
- xii. legal practitioners and notaries
- xiii. licensed professional accountants
- xiv. mortgage brokers
- xv. practitioners of mechanised farming
- xvi. supermarkets
- xvii. tax consultants
- xviii. trust and company service providers
- xix. pools betting
The above listed businesses and professionals must register with SCUML and obtain the certificate of registration.
WHAT IS DNFBPS IN SCUML REGISTRATION?
Designated Non-Financial Businesses and Professions are non-banking sectors classified by the EFCC as businesses easily prone to be used for money laundering activities and terrorism financing. To reduce the risk of such occurrence or prevent it totally, such business must be registered with SCUML, large transactions must be reported and audits must be conducted as when due.
WHY IS SCUML REGISTRATION IMPORTANT?
It is a compliance requirement for businesses categorized as DNFBPs therefore failure to comply will limit the scope of operation. For example, a DNFBP cannot open a corporate bank account without evidence of SCUML registration.
There is an assumption, to the credit of the organization, that a compliant business cannot be used for money laundering activities once it has gotten it’s SCUML certificate. However, the reverse is the case where there is a failure to obtain certificate.
Compliance strengthens a business credibility amongst stakeholders, investors, employees and partners.
HOW TO GET SCUML CERTIFICATE?
The process for SCUML registration is a straight forward one with no cost from the agency.
1. Fill the online SCUML Registration form.
The form will require information such as company’s name, RC number, address, director’s bio data, bank details of the company or its directors etc.
2. Upload the relevant documents
It is required to upload documentations such as certificate of registration, status report or FORM CAC 2 and 7, Memart, ID cards of the directors etc Once application is completed and submitted, SCUML does its verifications, and if satisfied, the certificate will be issued.
HOW TO VERIFY SCUML CERTIFICATE
The following are the steps
1. Go to SCUML website at https://scuml.efcc.gov.ng/
2. Click on Verify Scuml Certificate
3. Insert SCUML number as found on the top right of the certificate
4. Click Search
HOW TO CHECK SCUML REGISTRATION STATUS
The following are the steps
- Go to SCUML website at https://scuml.efcc.gov.ng/
- Click on Check Registration Status
- Insert the name of the company or the registered no
- Click Search
HOW MUCH IS SCUML CERTIFICATE
SCUML Certificate is issued free of charge. The process of registration can only be completed on the SCUML website with no cost of filing attached.
CONCLUSION
SCUML certificate registration is a crucial compliance requirement for businesses categorized as DNFIs operating in Nigeria. Compliance is therefore mandatory for continued and seamless operations.
FREQUENTLY ASKED QUESTIONS
1. Can a business not categorized as DNFBP obtain SCUML registration certificate?
Yes. A business not categorized as DNFBP can obtain scuml.
2. Is SCUML registration certificate issued yearly?
No. Scuml registration certificate is obtained once. It is not subject to renewal.
3. Asides getting SCUML certificate, what are other steps to take to remain compliant
with anti-money laundering laws Amongst others include:
• Implement robust Customer Due Diligence (CDD) and Know Your Customer
(KYC) vetting for all clients.
• File Currency Transaction Reports (CTRs) and Suspicious Transaction Reports (STRs) exclusively through the SCUML portal
• Appoint a qualified internal compliance officer to manage all regulatory filings.
Disclaimer: This publication is for general informational purposes only. It does not constitute legal advice. For specific guidance, contact a qualified lawyer.
Written by:
Ogheneyoma E. Ibuje, ACIS
Legal Associate
Phone: 0806 234 8867, 0908 011 9975, 0908 011 9980
Email: info@tcorporatelegaladvisory.com
Website: www.tcorporatelegaladvisory.com
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