EFCC boss warns real estate developers against money laundering

The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ola Olukayode, has urged real estate developers in Nigeria to align their operations with the law, pay their taxes, and conduct due diligence on clients to contribute meaningfully to the country’s economic development and avoid being used for money laundering.

Speaking in Abuja on Wednesday during a policy dialogue on “Critical Issues Affecting Nigeria’s Real Estate Ecosystem” organised by the Law Corridor, Olukayode emphasised the need for compliance with legal and ethical standards in the real estate sector.

He noted that the EFCC views real estate as a strategic sector for stimulating economic growth—provided that industry players operate transparently and responsibly.

“There is no way the fight against corruption can succeed in the country if the economy is destroyed,” Olukayode stated. He decried the trend of individuals entering the real estate business without a proper understanding of legal obligations or business fundamentals, often resulting in abandoned projects or involvement in illegal financial dealings.

He expressed concern over the widespread use of real estate transactions to launder illicit funds, particularly by civil servants and politically exposed persons who use proxies, such as lawyers, to conceal ownership of high-value properties.

“We have seen properties worth billions bought by people whose earnings cannot justify such transactions,” he said. “As developers, you must conduct Know Your Customer (KYC) checks — even if not legally mandated, do it in the interest of your business. It could save you from being dragged into criminal investigations.”

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Olukayode stressed that developers who fail to verify the sources of funds used in transactions risk losing their investments. He warned, “If we trace criminal proceeds to your property, we will recover it.”

He also highlighted the issue of abandoned estates across the country, attributing many to illicit funds that dried up once the perpetrators left public office. He disclosed that the anti-graft agency would begin visiting estates nationwide to verify ownership and funding sources.

“Some estates have been abandoned for 10 to 20 years. We have discovered that many were funded with proceeds of crime. The developers disappear when the money stops coming. We are preparing to move against such estates,” he said.

Olukayode further urged developers to pay their taxes, including property and capital gains tax, and to guide their clients to comply with relevant tax obligations. He also cautioned against unrealistic borrowing from commercial banks at high-interest rates to fund real estate projects, advising developers to grow sustainably.

“Don’t bite more than you can chew. Start with what you can handle. Don’t let anybody use your name to launder money. We will find you and bust your profits,” he warned, adding that the commission is not out to stifle businesses but to protect the sector and ensure its integrity.

“We want your business to succeed. When you succeed, you employ more people and reduce the likelihood of financial crimes,” he said, calling on developers to approach the EFCC whenever they face challenges. He pledged that the commission is open and ready to partner with stakeholders for the growth and sanitisation of Nigeria’s real estate ecosystem.

NIGERIAN TRIBUNE