Nigeria’s Securities and Exchange Commission has directed capital market operators to suspend dealings with financial institutions in North Korea, Iran and Myanmar, aligning with international standards on money laundering and terrorism financing risks.
The regulator issued the directive in a circular released Friday to listed entities and other capital market regulated entities, citing recommendations from the Financial Action Task Force. The move follows provisions under the Investments and Securities Act 2025, which empowers the commission to enforce compliance with global anti-money laundering, counter-terrorism financing and counter-proliferation financing obligations.
For North Korea, the SEC ordered the termination of correspondent banking relationships with financial institutions incorporated in, owned or controlled by persons or entities in the country. Operators must ensure no subsidiaries, branches or representative offices of Democratic People’s Republic of Korea financial institutions are established or maintained within their operations. Business relationships and transactions involving DPRK nationals, entities, government bodies or persons acting on their behalf must be restricted or refused where appropriate.
Regarding Iran, the commission directed operators to refuse processing or facilitating transactions with Iranian financial institutions and to decline establishing or maintaining subsidiaries, branches or representative offices of such institutions in Nigeria. Firms were also instructed to refrain from establishing or operating branches, subsidiaries or representative offices in Iran where deficiencies in the country’s anti-money laundering, counter-terrorism financing and counter-proliferation financing framework could compromise compliance obligations.
For Myanmar, the SEC mandated enhanced due diligence measures proportionate to the risks associated with the jurisdiction. This includes increased frequency, scope and intensity of transaction monitoring for customers, transactions and business relationships connected to Myanmar.
The circular also drew attention to jurisdictions currently under FATF increased monitoring. These include Algeria, Angola, Bolivia, the British Virgin Islands, Bulgaria, Cameroon, Côte d’Ivoire, the Democratic Republic of the Congo, Haiti, Kenya, Lao PDR, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam and Yemen. Capital market operators are expected to apply heightened scrutiny when engaging with entities linked to these jurisdictions.
The directive underscores Nigeria’s commitment to strengthening the integrity of its financial markets and meeting international compliance benchmarks. By enforcing FATF-aligned measures, the SEC aims to mitigate exposure to illicit financial flows and protect the domestic capital market from reputational and regulatory risks. Market participants are expected to implement the requirements immediately and report compliance progress to the commission. Further guidance may be issued as the global risk landscape evolves.
