Nigeria’s Securities and Exchange Commission [SEC] has directed the immediate freezing of assets belonging to 13 entities and individuals operating within the capital market over alleged links to terrorism financing.
The action followed the designation of 10 individuals and three organisations on the Nigeria Sanctions List by the Nigeria Sanctions Committee, triggering sweeping compliance measures across the financial system.
In a directive issued to capital market operators, the Commission said the move was backed by provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which empowers authorities to freeze funds, assets, and economic resources tied to designated persons without prior notice.
According to the SEC, all Capital Market Operators (CMOs) and relevant stakeholders were required to immediately identify and block accounts linked to the affected entities, halt all transactions, and report any attempted dealings to the sanctions committee.
The regulator stressed that the directive was mandatory and formed part of broader efforts to strengthen Nigeria’s anti-money laundering and counter-terrorism financing framework.
Findings accompanying the sanctions showed that several of the listed individuals were previously convicted by a court in Abu Dhabi in 2019 for financing terrorist activities associated with the extremist group Boko Haram.
The offences reportedly involved raising funds in Dubai and channeling them into Nigeria to support terror operations, with sentences ranging from 10 years imprisonment to life terms.
The SEC noted that the development highlights the growing use of corporate structures as conduits for illicit financial flows, underscoring the need for tighter scrutiny within the financial system.
It clarified that the asset freeze is a preventive measure aimed at disrupting financial networks linked to terrorism, rather than a punitive action. However, institutions that fail to comply risk severe consequences, including regulatory penalties, criminal liability, and reputational damage.
The directive also extends beyond traditional financial institutions to cover Designated Non-Financial Businesses and Professions (DNFBPs), reflecting a more comprehensive enforcement approach across Nigeria’s financial ecosystem.
Reaffirming its zero-tolerance stance, the Commission urged market operators to strengthen their compliance systems, including real-time name screening, transaction monitoring, and prompt reporting mechanisms.
The SEC added that strict adherence to the directive is critical to maintaining the integrity and credibility of Nigeria’s capital market, both locally and internationally.
[Inside Business]
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