At the 117th edition of ‘EFCC Connect,’ an interactive public forum held on Wednesday in Abuja on X spaces, ACE II Ahmed Lawal highlighted the pervasive fraud schemes affecting the extractive industry. Lawal’s speech provided an extensive overview of fraudulent activities that infiltrate various sectors within it such as upstream, midstream and downstream operations which entail heavy financial losses for both government and private entities.
KYC compliance is extremely important in efforts to counteract fraud and corruption, according to Lawal. He cited underdeveloped due diligence on customers and suppliers as major risks towards getting involved in activities such as money laundering and financing terrorism.
It was obvious from the EFCC that companies in the extractive sector must ensure they have permits, licences and carefully screen their customers and suppliers.
“We know that all the sectors within the extractive industry are prone to frauds and corruption by working together. These vulnerabilities can cause massive revenue losses for governments as well as individuals,” according to Lawal.
He added, “However, KYC is one of the most critical factors in combating corruption and fraud so this should be followed. Companies need to conduct full due diligence on their customers and suppliers in order to prevent money laundering, terrorism financing among other illicit activities.”
IDMERIT: Leading the Fight Against Fraud with Advanced KYC Solutions
Given these challenges, extractive industries’ firms must implement reliable identity validation systems based on existing KYC guidelines to curb fraudulent practices. IDMERIT is a renowned provider of identity verification services whose solutions can meet this requirement specifically.
Among IDMERIT’s specific solutions is know your customer solutions. It integrates into its framework advanced technologies such as biometrics authentication, liveness detection, AI-driven analytics etc., which provide a comprehensive validation process on an ongoing basis.
To help prevent fraudulent activities, businesses can enhance their due diligence measures through the use of KYC solutions.
In the extractive sector, companies can no longer afford to ignore advanced KYC solutions since regulatory pressures have increased and fraudsters have become smarter.
With IDMERIT’s KYC solution, companies can meet KYC regulations while avoiding financial losses and reputational damage associated with corruption and fraud. IDMERIT will assist your business to stay ahead and secure your operations with our holistic identity checks.
