Nigeria’s capital market regulator, the Securities and Exchange Commission Nigeria, has directed an immediate freeze on the assets of 13 individuals and entities over alleged links to terrorism financing.
The directive, which takes effect without delay, targets 10 individuals and three companies recently listed on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
In a circular issued to capital market operators, the Commission said the action is backed by provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which empowers authorities to block access to funds tied to designated persons or groups without prior notice.
The SEC ordered all operators to identify and immediately freeze accounts linked to the affected parties, halt all transactions, and report any such assets or attempted dealings to the Sanctions Committee Secretariat.
“The directive is binding on all capital market operators and must be enforced without delay,” the Commission stated, warning that hesitation could undermine efforts to curb illicit financial flows.
Regulators disclosed that some of the individuals had previously been convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for offences connected to terrorism financing, including raising funds abroad and channeling them into Nigeria to support activities linked to Boko Haram. Sentences ranged from 10 years’ imprisonment to life terms.
The SEC also highlighted the role of corporate entities in masking illicit transactions, noting that some of the affected companies were used as conduits for cross-border fund movements.
Describing the measure as preventive rather than punitive, the Commission said the objective is to disrupt financial networks that sustain terrorism before funds are deployed.
It warned that non-compliance would attract severe consequences, including civil and criminal sanctions, as well as reputational damage for defaulting institutions.
The directive extends beyond financial institutions to include designated non-financial businesses and professions, underscoring what the SEC described as a more aggressive and comprehensive approach to combating money laundering and terrorism financing.
Operators were further advised to strengthen compliance systems through real-time name screening, asset monitoring, and prompt reporting, while ensuring that affected clients are not tipped off ahead of enforcement.
