Nigeria’s Securities and Exchange Commission (SEC) has ordered an immediate asset freeze of 13 entities allegedly linked to terrorism financing. The move follows the designation of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
The SEC cited provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the freezing of funds, assets, and economic resources linked to the named persons and organisations without prior notice. Capital Market Operators (CMOs) and stakeholders must identify and freeze assets, report frozen assets, and halt transactions with the flagged entities.
The designated individuals were convicted by the Abu Dhabi Federal Court of Appeal in 2019 for terrorism financing activities linked to Boko Haram. The SEC emphasized that the asset-freezing mechanism is preventive, aiming to disrupt financial support systems for terrorism.
The directive extends to Designated Non-Financial Businesses and Professions (DNFBPs), signalling a comprehensive enforcement approach. Non-compliance risks civil and criminal liabilities, reputational damage, and regulatory sanctions.
The SEC’s action reflects its zero-tolerance enforcement of anti-money laundering.
The SEC warned market operators to ensure trading systems can rapidly screen names, trace assets, and report without delay. Compliance teams must act swiftly to avoid penalties.
