By Muhammad Mamman
The Economic and Financial Crimes Commission (EFCC) has issued a stern warning to automobile dealers across Nigeria, urging them to steer clear of transactions that could aid money laundering or the financing of terrorism.
In a statement released this week, the anti-graft agency reminded dealers that the luxury car market has increasingly become a target for criminals seeking to disguise the proceeds of illicit activities. The EFCC emphasised that ignorance of the law would not be accepted as an excuse, warning that any dealer found complicit in suspicious financial dealings could face prosecution, asset forfeiture, and revocation of business licences.
According to the Commission, some individuals and groups have attempted to exploit gaps in vehicle sales documentation and cash-based transactions to legitimise dirty money. The EFCC has therefore reiterated the requirement for all car dealers to comply with the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) regulations, including Know Your Customer (KYC) procedures and the proper reporting of large or unusual cash payments.
The agency further revealed that it is strengthening its collaboration with other regulatory bodies — including the Nigerian Financial Intelligence Unit (NFIU) and the Federal Inland Revenue Service (FIRS) — to trace suspicious purchases and clamp down on non-compliant businesses.
An EFCC spokesperson noted that the warning forms part of a broader national strategy to prevent the flow of illicit funds into the economy. “We urge all car dealers to ensure full compliance with the law. The era of turning a blind eye to shady transactions is over,” the statement read.
Industry observers say the EFCC’s latest move signals a more aggressive approach to financial transparency in the automobile sector — one that could reshape the way luxury vehicles are bought and sold in Nigeria.
