Nigeria’s Securities and Exchange Commission (SEC) has ordered the immediate freezing of assets belonging to 13 capital market entities suspected of involvement in terrorism financing. The directive, issued under the Terrorism (Prevention and Prohibition) Act 2022, follows the designation of 10 individuals and three organizations on Nigeria’s Sanctions List by the Nigeria Sanctions Committee.
The SEC’s compliance directive requires capital market operators to swiftly identify and freeze all accounts linked to the listed persons and entities, halt any ongoing or future transactions, and report both frozen assets and attempted dealings to the Sanctions Committee Secretariat. The action is described as preventive, aimed at disrupting financial support networks for terrorism before funds can be deployed.
Several of the designated individuals were previously convicted in April 2019 by the Abu Dhabi Federal Court of Appeal for financing terrorism connected to Boko Haram. The convictions involved raising funds in Dubai and transferring them to Nigeria to support terrorist activities, with penalties ranging from 10-year jail terms to life imprisonment.
The SEC emphasized that the measure underscores how corporate entities can be exploited as conduits for illicit financial flows, highlighting the need for tighter scrutiny across Nigeria’s financial system. The directive also extends to Designated Non-Financial Businesses and Professions (DNFBPs), reflecting a broader enforcement strategy within the country’s financial ecosystem.
Market operators have been warned that failure to comply could result in severe consequences, including civil and criminal penalties, as well as reputational damage. The Commission urged firms to strengthen real-time monitoring systems, ensure effective name screening, and act without delay or prior notice to affected clients.
The SEC reaffirmed its zero-tolerance stance on anti-money laundering and counter-terrorism financing violations, stressing that non-compliance could undermine the credibility of institutions both locally and internationally.
