The Securities and Exchange Commission (SEC) has directed an immediate freeze on the assets of 13 newly identified entities linked to terrorism financing within Nigeria’s capital market.
The directive, titled “Commission’s Sweeping Compliance Directive Issued to Capital Market Operators,” follows the designation and blacklisting of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
According to the Commission, the action is backed by provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the immediate freezing of all funds, assets, and economic resources linked to designated persons or organisations—without prior notice.
The SEC stated that all Capital Market Operators (CMOs) and relevant stakeholders have been formally notified of the directive, in line with Section 49 of the Act. The sanctions include asset freezes, travel bans, and arms embargoes on the affected individuals and entities.
“The directive to freeze accounts and halt all transactions with the flagged entities is binding on all operators and stakeholders,” the Commission said, adding that strict compliance measures must be observed.
These measures include the immediate identification and freezing of all linked assets without prior notification, as well as mandatory reporting of frozen accounts and any attempted transactions to the Nigeria Sanctions Committee Secretariat.
Further details revealed that several of the designated individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing offences connected to Boko Haram activities.
The offences reportedly involved the collection of funds in Dubai and their transfer to Nigeria to support terrorist operations, with sentences ranging from 10 years imprisonment to life terms.
The SEC noted that the development highlights a recurring pattern in which corporate entities are used as channels for illicit financial flows, underscoring the need for heightened scrutiny across the financial system.
It emphasized that the asset-freezing mechanism is preventive, aimed at disrupting financial networks that support terrorism before funds can be deployed.
The Commission also warned that non-compliance carries severe consequences, including civil and criminal liabilities, as well as reputational risks for defaulting institutions.
In a broader enforcement push, the directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions (DNFBPs), signalling a more comprehensive regulatory approach across Nigeria’s financial ecosystem.
The SEC reiterated that the move aligns with its zero-tolerance stance on anti-money laundering and counter-terrorism financing (AML/CFT) violations, stressing the need for real-time compliance, robust reporting, and continuous transaction monitoring.
“For market operators, trading systems must support rapid name screening, asset tracing, and prompt reporting, while compliance teams are expected to act immediately and without prior notice to affected clients,” the Commission stated.
It added that failure to comply not only attracts regulatory sanctions but also threatens the credibility of institutions in both domestic and international markets.
