SCUML: Comprehensive Overview and Compliance Requirements

SCUML is an acronym for Special Control Unit against Money Laundering, a department of the Economic and Financial Crimes Commission (EFCC). In order to deal with situations in which businesses were used as conduits for carrying out financial crimes and sponsoring terrorist activities, SCUML was established and charged with the responsibility of registering, monitoring, and supervising the activities of Designated Non-Financial Businesses and Professions (DNFBPs) in accordance with the Money Laundering (Prevention and Prohibition) Act, 2022, and the Economic and Financial Crimes Commission (Anti-Money Laundering, Combating and Financing of Terrorism and Proliferation of Weapons of Mass Destruction for Designated Non-Financial Businesses and Professions and Other Related Matters) Regulation, 2022.

Designated Non-Financial Businesses and Professions (DNFBPs) refer to dealers in jewellery, precious metals and stones, cars and luxury goods, audit firms, tax consultants, clearing and settlement companies, notaries, and chartered accountants, trust and company service providers (who provide services to third parties), hotels, casinos (including internet and ship-based casinos), supermarkets, real estate agents, non-profit organisations, or such other businesses or professions as the Federal Ministry of Trade and Investments or appropriate regulatory authorities may, from time to time, designate.

FUNCTIONS OF SCUML

According to the SCUML website and Section 17(2), SCUML has ten major functions, which are:

1. Registration and certification of Designated Non-Financial Businesses and Professions (DNFBPs) in Nigeria.
2. Sensitization of DNFBPs in Nigeria on their compliance obligations under the Money Laundering Prevention and Prohibition Act, 2022, and the implementation guidelines.
3. Monitoring and supervision of the activities of DNFBPs as it relates to Anti-Money Laundering (AML) and Combating and Financing of Terrorism (CFT).
4. Conducting off-site, on-site, and spot checks inspection of DNFBPs.
5. Taking necessary enforcement actions to ensure compliance with the AML/CFT Laws and Regulations.
6. Collection of statutory reports: Cash-based Transaction Reports (CBTRs) and Currency Transaction Reports (CTRs) for onward forwarding to the Nigeria Financial Intelligence Unit (NFIU).
7. Establishment and maintenance of a comprehensive database of DNFBPs and their financial transactions to support tactical, operational, and strategic analysis as well as policy options in combating ML/FT.
8. Strategic analysis using available data to identify emerging trends and patterns in money laundering and terrorist financing.
9. Provision of vital information relating to DNFBPs' money trails to assist criminal investigations by Law Enforcement Agencies in order to boost the fight against economic and financial crimes within the DNFBPs sector in Nigeria.
10. Collaboration with stakeholders to ensure compliance with AML/CFT measures within the DNFBP sector in Nigeria.

The SCUML certificate is used as proof that a business is not a conduit for money laundering or sponsoring terrorist activities. Since designated non-financial institutions frequently conduct commercial transactions involving cash, money laundering schemes can easily use them as conduits.

HOW TO GET A SCUML CERTIFICATE

Registered companies can obtain their SCUML certificate through the following steps:

1. Fill out the SCUML registration form online by logging into the SCUML website: https://www.scuml.org.
2. The page redirects to a registration page where the form is located. The form is to be duly filled with correct and up-to-date information: https://portal1.scuml.net/registrationguideline.php.
3. The required documents are then uploaded to the portal, and the application is complete. Some of the required documents are:

Upon successful application by the DNFI, a soft copy of the certificate will be sent to the company by email as evidence that the business or institution has been duly registered with SCUML.

HOW LONG DOES IT TAKE TO OBTAIN A SCUML CERTIFICATE?

Following the application's submission, the registration process is completed, and a certificate is typically obtained within 14 to 21 days; however, it may take longer.

CAN A BUSINESS LOSE ITS SCUML CERTIFICATION?

A business in Nigeria can lose its certification under the Special Control Unit against Money Laundering (SCUML). Businesses that are subject to SCUML regulations, such as Designated Non-Financial Institutions (DNFIs), are required to adhere to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) requirements. These requirements include disclosing certain financial transactions, performing customer due diligence, and maintaining records in accordance with the law.

SCUML has the power to take a variety of steps against a company if it disobeys these requirements or is discovered to be engaging in money laundering or terrorist financing operations. These steps include:

1. Withdrawal or Revocation of SCUML Certification: According to the provisions of Section 18(4) of the MLA 2022, SCUML can withdraw or revoke the certification of a business that is found to be in violation of AML and CTF regulations and is involved in unlawful acts as provided for under Section 18(6). The unlawful acts referred to are:
2. Imprisonment or Payment of Fine: According to Section 18(2), any person or body corporate, in or outside Nigeria, who directly or indirectly conceals or disguises the origin of, converts or transfers, removes from the jurisdiction, or acquires, uses, retains, or takes possession or control of any fund or property, intentionally, knowingly or reasonably ought to have known that such fund or property is, or forms part of the proceeds of an unlawful act, commits an offence of money laundering under this Act. Subsection (3) states that a person who contravenes the provisions of subsection (2) is liable on conviction to imprisonment for a term of not less than four years but not more than fourteen years, or a fine not less than five times the value of the proceeds of the crime, or both, while Subsection (4) provides that a body corporate that contravenes the provisions of subsection (2) is liable on conviction to a fine of not less than five times the value of the funds or the properties acquired as a result of the offence committed.
3. Criminal Prosecution: In more serious cases of money laundering or terrorist financing, the business and its owners or operators may face criminal prosecution under Nigerian law.
4. Seizure of Assets: SCUML may also work with law enforcement agencies to seize assets linked to money laundering or terrorism financing activities.

LIST OF DNFIs AND THEIR REQUIREMENTS FOR REGISTRATION

DEALERS IN LUXURY GOODS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

DEALERS IN JEWELLERY

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Evidence of Registration with Jewellery Marketers Association of Nigeria (JMAN)

CAR DEALERS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

Evidence of Registration with Association of Motor Dealers of Nigeria (AMDON)

SUPERMARKETS

LIMITED LIABILITIES

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

HOTELS AND HOSPITALITY BUSINESSES

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Registration with Hotel Owners Association of various states of the Federation and the Nigeria Tourism Development Corporation (NTDC)

CASINOS, POOL BETTING & LOTTERY BUSINESSES

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)

ADDITIONAL REGISTRATION REQUIREMENT:

• Licence from either the National Lottery Commission or State Lotteries Board

AUDIT FIRMS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Professional certificate with ICAN, ANAN, or ACCA

TAX CONSULTANTS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Professional certificate with ICAN, ANAN, ACCA, or CITN

ACCOUNTING FIRMS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Professional certificate with ICAN, ANAN, or ACCA

ESTATE SURVEYORS AND VALUERS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Nigerian Institution of Estate Surveyors and Valuers (NIESVs) or Nigeria Institute of Quantity Surveyors Certificate (NIQS)

REAL ESTATE DEALERS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• REDAN Certificate

MECHANISED FARMING

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

CONSTRUCTION COMPANIES

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• COREN Membership Certificate or Nigerian Society of Engineers Membership Certificate, etc.

MORTGAGE BROKERS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

CONSULTING COMPANIES

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

Relevant Consulting certificate

CLEARING & FORWARDING COMPANIES

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Evidence of registration with the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN)

DEALERS IN PRECIOUS STONES AND METALS

LIMITED LIABILITIES:

• Certificate of Incorporation
• Memorandum and Articles of Association
• Form CAC 1.1 (CAC 2 and CAC 7 FOR OLD REGISTRATION)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

BUSINESS NAME:

• Certificate of Incorporation
• Form BN-01 (Proprietor’s Particulars)
• Tax Identification Number (TIN)
• BVN, Bank Name, and Account Number

ADDITIONAL REGISTRATION REQUIREMENT:

• Exploration License/Permit (Ministry of Solid Minerals); Licence from a Certified Geologist. For Exporting: Nigerian Export Promotion Council (NEPC); For Importing: Nigerian Investment Promotion Commission (NIPC).

NON-PROFIT ORGANISATIONS (NPOs)

NPOs are made up of:

1. Charitable/Humanitarian Organisations (a) International (b) Local
2. Religious Organisations
3. Associations/Clubs/Societies

TRUSTS/NGOs:

• Certificate of Incorporation/Registration
• Incorporation of Trustees or CAC7 and CAC2
• Identification of Trustees with a valid means of identification
• Constitution/Memorandum & Articles of Association
• Tax Identification Number (TIN) or Tax Exemption
• Particulars of Settlors

Particulars of Protector (if any)

Evidence of Registration with relevant regulatory bodies

ADDITIONAL REQUIREMENTS FOR NPOs

NPOs must also comply with the following requirements:

Financial Records: Maintain accurate financial records and accounts.

Annual Reports: Submit annual reports to the relevant authorities detailing activities and financial status.

Compliance with Local Laws: Ensure adherence to local laws governing non-profit operations, including tax obligations and reporting requirements.

CONCLUSION

Proper registration and adherence to the outlined SCUML requirements are essential for businesses and non-profit organisations to operate legally and contribute to the fight against financial crimes.