Nigeria’s Securities and Exchange Commission (SEC) has issued an immediate directive freezing all assets of 13 capital market entities, comprising 10 individuals and three organisations, newly linked to alleged terrorism financing activities.
The Commission, in compliance directive addressed to all Capital Market Operators (CMOs) and stakeholders, said the action follows the formal designation and blacklisting of the entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
According to the SEC, the directive is anchored on section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the immediate freezing of all funds, assets, and economic resources linked to named persons and organisations without prior notice.
“The directive to freeze accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders,” the SEC stated. “This includes immediate identification and freezing of all assets linked to designated individuals and entities without prior notification, as well as mandatory reporting of frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.”
The Commission emphasised that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed.
Links to UAE Convictions, Boko Haram Financing
Details accompanying the designation reveal that several of the individuals were previously convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing activities linked to Boko Haram.
Court documents indicate that the offences largely involved the alleged collection of funds in Dubai and transferring them to Nigeria to support terrorist operations. Sentences handed down ranged from 10 years imprisonment to life sentences, underscoring the severity of the offences.
“This highlights a pattern where corporate vehicles are used as channels for financial flows, reinforcing the need for heightened scrutiny of business entities within the financial system,” the SEC noted.
Strict Compliance Obligations for Market Operators
The SEC has directed all CMOs to ensure their trading systems are capable of rapid name screening, asset tracing, and continuous transaction monitoring. Compliance teams are expected to act without delay and without prior notice to affected clients.
The directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions (DNFBPs), signalling a more comprehensive enforcement approach across Nigeria’s financial ecosystem.
Penalties for Non-Compliance
The Commission warned that failure to comply attracts severe consequences.
“The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting,” the statement added.
The SEC reiterated that the latest alert is in line with its zero-tolerance enforcement of anti-money laundering and counter-terrorism financing (AML/CFT) rules within Nigeria’s capital market, with emphasis on real-time compliance, detailed reporting, and continuous transaction monitoring.
“It has to be noted that failure to comply not only exposes firms to regulatory sanctions but also risks damaging their credibility in both domestic and international markets,” the SEC stated.
The Nigeria Sanctions Committee has also approved a travel ban and arms embargo alongside the asset freeze against the designated entities.
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