What's SCUML? How to apply and get SCUML Certificate
Posted: May 6th, 2023, 6:16 pm
Financial crimes are becoming more complicated and sophisticated as the globe continues to digitalize. Money laundering is a serious crime often associated with illegal activities such as fraud, corruption, and drug trafficking. It has significant economic and social impacts, such as damaging the reputation of financial institutions, corrupting markets, and supporting terrorist activities. Governments worldwide have enacted laws and regulations to prevent and combat money laundering and terrorist financing.The Nigerian government has established many institutions to combat money laundering and terrorism funding in order to tackle these crimes. The Special Control Unit Against Money Laundering (SCUML) is one of these organisations.
What is SCUML?
SCUML is an acronym for The Special Control Unit Against Money Laundering, it was established as a governmental body in compliance with the Money Laundering (Prohibition) Act 2004, which is now known as the Money Laundering (Prohibition) Act 2011. Its function is to supervise, regulate, and monitor the operations of Designated Non-Financial Institutions (DNFIs).
The EFCC offers the SCUML certificate to an organisation as confirmation of its validity and to guarantee that its bank account is not involved in any money laundering operations. Failure to register with SCUML may prevent DNFIs from opening bank accounts with any financial institution. As a result, the SCUML certificate is critical for DNFIs that want to conduct financial transactions smoothly.
Do I need SCUML certificate?
The necessity of acquiring SCUML registration and certification is contingent on whether your business is classified as a Designated Non-Financial Institution (DNFI) in Nigeria. DNFI entities are required by law to undergo registration with SCUML and obtain certification to demonstrate conformity with anti-money laundering and counter-terrorism financing regulations. Consequently, if your business falls under any of the DNFI classifications, it is imperative to obtain SCUML registration and certification to prevent non-compliance penalties and uphold your business reputation.
Who are DNFI's?
The individuals and businesses categorized as DNFIs, according to Section 25 of the Money Laundry Act, include the following:
1. Dealers in jewellery
2. Dealers in cars and luxury goods
3. Dealers in precious stones and metals
4. Real estate agents
5. Estate developers
6. Estate surveyors and valuers
7. Estate agents
8. Chartered accountants
9. Audit firms
10. Tax consultants
11. Clearing and settlement companies
12. Hotels
13. Casinos
14. Supermarkets
15. Dealers in mechanized farming equipment and machinery
16. Practitioners of mechanized farming
17. Non-governmental organizations (NGOs)
Required Documents for SCUML certificate registration
To register for the SCUML (Special Control Unit Against Money Laundering) certificate in Nigeria, you will need to provide the following documents:
1. Certificate of Incorporation or Registration of Business Name (for corporate entities)
2. Form CAC 2A (for corporate entities)
3. Form CAC 7 (for corporate entities)
4. Evidence of address of the registered office (for corporate entities)
5. TIN (Tax Identification Number) certificate
6. Evidence of identity (national ID card, international passport, or driver's license) of the directors, shareholders, and beneficial owners of the company
7. Business plan, detailing the nature of the business, expected turnover, and target market
8. Audited Financial Report
9. Authorized Operational License (Not Applicable to NGOs).
10. Company/Organization Profile
11. Board resolution to comply with SCUML guidelines and appoint a compliance officer
12. Completed SCUML registration form (obtained from the SCUML website or their office)
13. Constitution (For NGOs Only)
It is important to note that the specific requirements may vary depending on the institution/business; NGOs, companies, Association /Clubs/Societies, Religious Organisation, businesses.
Steps by step guide on how to apply for SCUML Certificate
To apply for the SCUML certificate in Nigeria, follow these steps:
1. Go to the SCUML website at https://scuml.org/.
2. Click on the "Registration" tab located on the top menu bar.
3. Choose between individual or corporate registration.
4. If applying for corporate registration, select your entity type (e.g., Limited Liability Company, Partnership, Trust, etc.).
5. Carefully read the "Guidelines for SCUML Registration" and "Guidelines for Money Laundering Risk Assessment" documents.
6. Gather all the necessary documents as listed in the previous answer.
7. Fill out the SCUML registration form online or download a hard copy to complete manually.
8. Attach all required supporting documents and submit the form online or in-person at the SCUML office.
9. Submit the payment receipt to the SCUML office for verification.
10. The SCUML will review your application and, if approved, issue the SCUML certificate.
Upon the approval of the application, the firm will receive notification to collect the SCUML certificate as evidence of registration. Verification of the original copy of the Certificate of Incorporation is necessary before the certificate is issued. DNFI should appoint a Compliance Officer at the management level to coordinate AML/CFT activities and liaise with SCUML to comply with anti-money laundering and counter-terrorism financing regulations.
In conclusion, the Special Control Unit Against Money Laundering (SCUML) plays a crucial role in combatting financial crimes, particularly money laundering and financing of terrorism in Nigeria. Through its registration and regulatory processes, SCUML ensures that Designated Non-Financial Institutions (DNFIs) comply with established laws and regulations to prevent and control financial crimes. It is essential for DNFIs to adhere to the SCUML guidelines and requirements to maintain the integrity of the Nigerian financial system and safeguard against financial crimes. With the continuous efforts of SCUML and the cooperation of DNFIs, Nigeria can continue to make progress towards a more secure and transparent financial environment.
SCUML is an acronym for The Special Control Unit Against Money Laundering, it was established as a governmental body in compliance with the Money Laundering (Prohibition) Act 2004, which is now known as the Money Laundering (Prohibition) Act 2011. Its function is to supervise, regulate, and monitor the operations of Designated Non-Financial Institutions (DNFIs).
The EFCC offers the SCUML certificate to an organisation as confirmation of its validity and to guarantee that its bank account is not involved in any money laundering operations. Failure to register with SCUML may prevent DNFIs from opening bank accounts with any financial institution. As a result, the SCUML certificate is critical for DNFIs that want to conduct financial transactions smoothly.
Do I need SCUML certificate?
The necessity of acquiring SCUML registration and certification is contingent on whether your business is classified as a Designated Non-Financial Institution (DNFI) in Nigeria. DNFI entities are required by law to undergo registration with SCUML and obtain certification to demonstrate conformity with anti-money laundering and counter-terrorism financing regulations. Consequently, if your business falls under any of the DNFI classifications, it is imperative to obtain SCUML registration and certification to prevent non-compliance penalties and uphold your business reputation.
Who are DNFI's?
The individuals and businesses categorized as DNFIs, according to Section 25 of the Money Laundry Act, include the following:
1. Dealers in jewellery
2. Dealers in cars and luxury goods
3. Dealers in precious stones and metals
4. Real estate agents
5. Estate developers
6. Estate surveyors and valuers
7. Estate agents
8. Chartered accountants
9. Audit firms
10. Tax consultants
11. Clearing and settlement companies
12. Hotels
13. Casinos
14. Supermarkets
15. Dealers in mechanized farming equipment and machinery
16. Practitioners of mechanized farming
17. Non-governmental organizations (NGOs)
Required Documents for SCUML certificate registration
To register for the SCUML (Special Control Unit Against Money Laundering) certificate in Nigeria, you will need to provide the following documents:
1. Certificate of Incorporation or Registration of Business Name (for corporate entities)
2. Form CAC 2A (for corporate entities)
3. Form CAC 7 (for corporate entities)
4. Evidence of address of the registered office (for corporate entities)
5. TIN (Tax Identification Number) certificate
6. Evidence of identity (national ID card, international passport, or driver's license) of the directors, shareholders, and beneficial owners of the company
7. Business plan, detailing the nature of the business, expected turnover, and target market
8. Audited Financial Report
9. Authorized Operational License (Not Applicable to NGOs).
10. Company/Organization Profile
11. Board resolution to comply with SCUML guidelines and appoint a compliance officer
12. Completed SCUML registration form (obtained from the SCUML website or their office)
13. Constitution (For NGOs Only)
It is important to note that the specific requirements may vary depending on the institution/business; NGOs, companies, Association /Clubs/Societies, Religious Organisation, businesses.
Steps by step guide on how to apply for SCUML Certificate
To apply for the SCUML certificate in Nigeria, follow these steps:
1. Go to the SCUML website at https://scuml.org/.
2. Click on the "Registration" tab located on the top menu bar.
3. Choose between individual or corporate registration.
4. If applying for corporate registration, select your entity type (e.g., Limited Liability Company, Partnership, Trust, etc.).
5. Carefully read the "Guidelines for SCUML Registration" and "Guidelines for Money Laundering Risk Assessment" documents.
6. Gather all the necessary documents as listed in the previous answer.
7. Fill out the SCUML registration form online or download a hard copy to complete manually.
8. Attach all required supporting documents and submit the form online or in-person at the SCUML office.
9. Submit the payment receipt to the SCUML office for verification.
10. The SCUML will review your application and, if approved, issue the SCUML certificate.
In conclusion, the Special Control Unit Against Money Laundering (SCUML) plays a crucial role in combatting financial crimes, particularly money laundering and financing of terrorism in Nigeria. Through its registration and regulatory processes, SCUML ensures that Designated Non-Financial Institutions (DNFIs) comply with established laws and regulations to prevent and control financial crimes. It is essential for DNFIs to adhere to the SCUML guidelines and requirements to maintain the integrity of the Nigerian financial system and safeguard against financial crimes. With the continuous efforts of SCUML and the cooperation of DNFIs, Nigeria can continue to make progress towards a more secure and transparent financial environment.
