The SCUML certificate is a way for small businesses to understand the business environment in which they operate. The SCUML process helps small businesses understand their business environment to reduce the risk of being involved in money laundering activities.
Special Control Unit against Money Laundering (SCUML) is charged with the responsibility of monitoring, supervising, and regulating the activities of Designated Non-Financial Institutions (DNFIs) in line with the Money Laundering (Prohibition) Act ML(P)Act 2011 and the Prevention of Terrorism Act (PTA) 2011.
SCUML was established by the Federal Government in September 2005 in compliance with the provisions of the Money Laundering (Prohibition) Act, 2004, which was subsequently repealed and amended to the Money Laundering (Prohibition) Act 2011(as amended). A SCUML certificate is the Special Control Unit against Money Laundering certificate issued to organizations in compliance with the provisions of the Act.
What is Money Laundering?
Money laundering is the process of converting illegal proceeds into legitimate assets. This can be done by a number of means, including:
- Converting currency from illicit sources into more accepted forms.
- Using companies and other instruments to hide the origin of money or assets.
Money laundering techniques include:
Buying or selling securities in order to launder assets through the stock market. This method is called “smurfing” or “pump and dump.” The goal here is to create false demand for a company’s stock so that it appears popular among investors when really its value has plummeted due to fraud by management (or simply because no one wanted it anymore).
Why is a SCUML certificate needed?
A SCUML certificate is needed because of the risk of being involved in money laundering activities.
It will help you understand your business environment, including customers and suppliers. This can help you find out about a suspicious activity or criminal behavior that may be occurring at your company.
A SCUML certificate will also help you understand what the laws are in each state where you operate so that when something happens like a lawsuit or criminal investigation, everyone has access to information they need immediately without having to rely on Google searches alone (which sometimes leads people down incorrect paths).
Which type of business requires a SCUML certificate?
SCUML was created in response to the evolving techniques used by money launderers and financial criminals in order to counter their strategies. It is charged with monitoring, supervising, and regulating the designated non-financial institutions (DNFIs).
The regulation specifies that the following businesses and professions exist as Designated Non-Financial Institutions for the purpose of registration, reporting, and conduct of customer due diligence:
- Dealers in Jewelleries
- Dealers in Luxury Goods
- Chartered/Professional Accountants
- Audit Firms
- Tax Consultants
- Clearing and Settlement Companies
- Legal Practitioners
- Trust and Company Service Providers
- Estate Surveyors and Valuers
- Hotels and Hospitality industry
- Dealers and Miners of Precious Stones and Metals
- Pool Betting
- Casino and Lottery
- Non-Governmental Organizations
- Consultants and Consulting companies
- Construction Companies
- Estate Agents
- Dealers in Real Estate
- Importers and Dealers in cars and vehicles
- Dealers in Mechanized farming equipment and machinery.
- Practitioners of mechanized farming
The businesses listed above and any other business(es) that may be designated from time to time by the Federal Ministry of Trade and Investment or SCUML are required to register.
Also read: What do I need to open an account with Lenco
How do I get the SCUML certificate?
To get a SCUML certificate, Registration can be done on the SCUML website at NO COST. Visit the SCUML registration portal
The requirements for getting a SCUML certificate are clearly stated here – SCUML requirements
If you need more information visit https://www.scuml.org/ for more details.
SCUML is a process by which you can get your business certificate. It will help protect your business from potential money laundering activities and show the government that you are legitimate. SCUML certification is an important step toward becoming a legitimate business owner!