• Account opening course of irritating – Enterprise house owners

• ‘Banks reject purposes’

• SCUML process not cumbersome – EFCC

Stakeholders, enterprise house owners and consultants have decried the issue in opening company/enterprise accounts owing to the anti-money laundering certificates required from the Financial and Monetary Crimes Fee (EFCC).

The certificates, referred to as the SCUML certificates, is obtained from the EFCC as a part of necessities to open an account by Designated Non-Monetary Companies and Professions (DNFBPs) in Nigeria.

SCUML, referred to as the Particular Management Unit In opposition to Cash Laundering, was established by the Federal Authorities in September 2005 in compliance with the Cash Laundering (Prohibition) Act 2004 which was repealed and amended to Cash Laundering (Prohibition) Act 2011(as amended) and most just lately, to the Cash Laundering Prevention and Prohibition Act, 2022.

SCUML was created as a part of measures for the implementation of the Monetary Motion Job Pressure (FATF) Suggestions on Anti- Cash Laundering /Combating the Financing of Terrorism (AML/CFT) in Nigeria.

The Central Financial institution of Nigeria (CBN) had, in August 2012, issued a round FPR/CIR/GEN/Vol.1/028 directing DNFBPs, who’re current monetary establishments’ prospects, to replace their account data with proof of registration for SCUML.

Since then, any new DNFBP is required to amass the SCUML certificates along with different Know-Your-Buyer Certificates (KYC) necessities for opening an account and any financial institution that defaults could be fined N2m per account.

Checks on the web site of SCUML reveal that companies being regulated by SCUML embrace sellers in jewelries, luxurious items, chartered/skilled accountants, audit corporations, tax consultants, clearing and settlement corporations, authorized practitioners, belief and firm service suppliers, property surveyors and valuers, lodges and hospitality business, sellers and miners of valuable stones and metals, pool betting, on line casino and lottery, supermarkets, consultants and consulting corporations, development corporations, property brokers, sellers in actual property, importers and sellers in vehicles and autos sellers in mechanized farming tools and equipment.

Additionally, it’s required for a basis and nongovernmental organisation though this isn’t listed on the SCUML web site.

The EFCC believes that billions of naira are being laundered by means of a few of these companies and the authorized backing acquired by SCUML will assist in tackling that. 

Confusion amongst SMEs over SCUML 

Findings by Every day Belief reveal that many small companies have been struggling to open enterprise accounts over the SCUML certificates.

As an illustration, step one to open a enterprise account is to register the enterprise identify with the Company Affairs Fee adopted by a Tax Identification Quantity (TIN) obtained from the Federal Inland Income Service.

However regardless of that SCUML has listed a number of the companies that require the certificates, there’s confusion amongst SME house owners as banks insist on SCUML for nearly all enterprise account names and within the course of many companies find yourself abandoning company account over the method of acquiring SCUML certificates which they describe as “irritating.”

Whereas the method for registration is stipulated on the web site of SCUML, some companies say they discover it troublesome to do it on-line and need to depend on a 3rd celebration to hold out the registration.

Whereas SCUML utility is free, going by means of a 3rd celebration is just not. These concerned cost between N10,000 and N50,000 for fast-track with a view to get the SCUML.

“I’ve been on this since January this 12 months,” stated an SME proprietor who wouldn’t need his identify in public.

The businessman instructed our correspondent that he’s concerned in bricklaying work, however he fell underneath the SCUML entice as a result of he used the phrase, “enterprise.”

One other enterprise additionally expressed frustration over the troublesome course of concerned in acquiring the SCUML certificates.

Banks reject purposes

An official of one of many industrial banks said that his financial institution had rejected many purchasers’ purposes and insisted on getting the SCUML earlier than something so as to not circumvent the CBN guideline or open an unfunded account.

He stated, “Once you get pissed off, you’ll depart it. For every account that’s opened, you pay for it. That’s the reason we have now low tolerance for an unfunded account.

Many enterprise house owners, who spoke to correspondent, stated acquiring SCUML is just not a problem, however the lengthy course of it takes.

“I’ve tried to register it a number of occasions however it didn’t go. It’s not one thing you are able to do by yourself as a enterprise proprietor and you need to pay some individuals to do it for you and earlier than it individuals will flip it right into a racket.”

SCUML course of irritating companies – Stakeholders

Stakeholders say whereas the intention of the certification is to mitigate monetary fraud and nationwide and transnational cash laundering, the method should be simplified. Additionally they referred to as for harmonisation of knowledge since a lot of the paperwork required for SCUML have been submitted to both CAC or FIRS.

The President and Chairman of the Governing Council of NASME, Abdulrashid Yerima, recalled how he confronted an analogous problem in getting the SCUML certificates.

He referred to as for a stakeholders’ engagement to iron out the gray areas in getting SCUML certification.  

Human Rights lawyer, Tomi Vincent, described the issue in acquiring SCUML as “a typical Nigerian syndrome.”  

“I’ll advise that folks in cost ought to rethink the method of getting it,” he stated. 

On his half, the Chief Govt Officer of Centre for Non-public Enterprises, Muda Yusuf, urged authorities to make enterprise registration as seamless as attainable.

It’s an easy course of – EFCC 

Every day Belief stories that the Nigerian Bar Affiliation (NBA) had challenged the federal authorities over the designations of authorized practitioners as DNFIs required to acquire the SCUML certificates and had gained at each the Excessive Courtroom and the Attraction Courtroom; whereas the case has been moved to the Supreme Courtroom.

Reacting, EFCC spokesperson, stated the SCUML registration is simple on-line and profitable candidates get prompt acknowledgement.

He stated: “Those that expertise problem with the method are largely individuals who fail to submit the required documentation. After all, till all required paperwork are submitted, your utility can’t be processed. As soon as the appliance is full, “it’s assessed and you might be knowledgeable whether or not you might be profitable or not.”

“This course of doesn’t require any direct interface with employees of SCUML. It’s not inside the remit of SCUML to find out the place candidates go to fill out their purposes. 

“With web providers obtainable to anybody with a cell machine, it doesn’t make sense to counsel that candidates are shepherded to a selected cyber cafe to use for SCUML certificates.”