Nigeria’s Securities and Exchange Commission Nigeria (SEC) has ordered the immediate freezing of assets belonging to 13 capital market entities suspected of involvement in terrorism financing.
The directive follows the designation of 10 individuals and three organisations on the Nigeria Sanctions List by the Nigeria Sanctions Committee. In a compliance notice titled “Commission’s Sweeping Compliance Directive Issued to Capital Market Operators,” the SEC said the move aligns with provisions of the Terrorism (Prevention and Prohibition) Act 2022.
According to the Commission, the law mandates the freezing of all funds, assets, and economic resources linked to designated persons and entities without prior notice.
Capital market operators and stakeholders have been formally notified and instructed to identify and freeze all accounts connected to those listed, halt ongoing or future transactions, and report both frozen assets and attempted dealings to the Sanctions Committee Secretariat.
Further details revealed that several of the individuals had previously been convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for financing terrorism tied to Boko Haram. The convictions stemmed from allegations of 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 stressed that the development underscores a pattern in which corporate entities are used as channels for illicit financial flows, calling for tighter scrutiny across the financial system.
“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 Commission stated.
It added that the asset-freezing mechanism is preventive rather than punitive.
“The SEC also emphasized that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed.”
The Commission warned of severe consequences for non-compliance, including legal and reputational risks for institutions that fail to act.
“The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting,” it said.
The directive also extends to Designated Non-Financial Businesses and Professions (DNFBPs), reflecting a broader enforcement strategy across Nigeria’s financial ecosystem.
“For market operators, the trading systems must be capable of rapid name screening, asset tracing, and reporting, while compliance teams are expected to act without delay or prior notice to affected clients,” the SEC added.
Reaffirming its zero-tolerance stance on anti-money laundering and counter-terrorism financing violations, the Commission urged operators to strengthen monitoring systems and ensure swift compliance, warning that failure to do so could undermine institutional credibility both locally and internationally.
