SCUML registration is important and necessary for certain kind of businesses in Nigeria. SCUML stands for Special Control Unit Against Money Laundering. It is a unit under the Economic and Financial Crimes Commission (EFCC) established to monitor, register, and regulate certain categories of businesses in Nigeria. If you have tried to open a corporate bank account or register a business in Nigeria recently, you must have heard or encountered the term SCUML. But what exactly is SCUML, and why are banks and regulatory bodies insisting on it? The reason for the insistence is simple. This is to ensure that businesses in certain sectors are not used to launder money, finance terrorism or conduct suspicious transactions.
The SCUML certificate has now become a mandatory requirement for Opening or operating a corporate bank account, applying for licenses or regulatory approvals and or ensuring compliance with financial laws
In this blog, we will break down what SCUML means, who needs it and how to get it.
Who Needs SCUML Registration?
SCUML registration is not for all businesses. It is specifically required for Designated Non-Financial Businesses and Professions (DNFBPs) as listed under the Money Laundering (Prevention and Prohibition) Act, 2022 and SCUML guidelines.
Businesses and professions that need SCUML include:
- Real estate agents and property developers
- Dealers in jewelry, luxury goods, and precious metals/stones
- Car dealers (automobile sellers)
- Legal practitioners (when involved in financial or property transactions on behalf of clients)
- Accountants and auditors
- Hotels, casinos, and nightclubs
- NGOs (Non-Governmental Organizations)
- Consulting and investment advisory firms
- Supermarkets and businesses that engage in high-value cash transactions
If your business handles significant cash or facilitates financial transactions, chances are it qualifies under SCUML registration.
Who Does not Need SCUML?
- Businesses that are already regulated by the Central Bank of Nigeria (CBN) such as commercial banks, Fintech companies and licensed financial institutions
- Small retail traders or artisans not involved in large cash or property transactions
- Companies not operating in Nigeria or without physical presence
However, note that some banks may still request SCUML certificates from companies outside the list often as part of their internal compliance policies. So even if you think you are exempted, it is worth confirming with your bank.
How to Register for SCUML (Step-by-Step)
Getting your SCUML certificate is free and can now be done online:
- Visit the SCUML Portal
- Create an account and log in
- compile the required documents:
- Certificate of Incorporation (CAC)
- CAC Status Report
- Memorandum and Articles of Association
- Valid means of ID (for Directors or Proprietor) depending on the type of Business
- Utility bill or proof of business address
- Tax Identification Number (TIN)
- Company profile or business description
- Submit the application and wait for verification
Once your documents are verified, your SCUML certificate will be issued electronically. This can take a few days or a couple of weeks depending on processing times.
What Happens After Getting SCUML? SCUML is not a one-time registration. As a regulated entity, you are expected to Keep proper records of transactions, file Suspicious Transaction Reports (STRs) if you detect anything unusual, comply with Know Your Customer (KYC) guidelines, undergo occasional Audits or monitoring by EFCC or SCUML officials. Non-compliance can result in penalties, business restrictions, or in serious cases, criminal prosecution.
In conclusion, many Nigerian businesses have been denied access to bank accounts or government contracts simply because they failed to register with SCUML. If your business is in any of the categories listed above, it is not just good practice it is a legal requirement. Ignorance of the Law is not an excuse. Understanding what SCUML is and whether your business falls under it can save you a lot of stress. With increased scrutiny by banks and financial regulators, SCUML compliance gives your business more credibility, access to finance, and ensures you are not caught in unnecessary legal or regulatory problems. If you are unsure of whether your business falls within the frame work of SCUML speak to a consultant or a lawyer.
For further enquiries
Email: info@verazadvocates.com.ng
Call/WhatsApp: +234 811 648 6356
