Nigeria’s Securities and Exchange Commission (SEC) has ordered an immediate asset freeze of the 13 alleged terrorism-linked entities across the capital market.
This follows the blacklisting of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
This is according to the Commission’s sweeping compliance directive issued to capital market operators early morning hours of Monday, April 13, ahead of market reopening for activities this week.
The Commission anchored its directive on provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the immediate freezing of all funds, assets, and economic resources linked to the named persons and organisations without prior notice.
What the SEC is saying
SEC stated that all Capital Market Operators (CMOs) and Stakeholders are hereby notified that pursuant to section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, the Nigeria Sanctions Committee has approved the addition of the entries below to the Nigeria Sanctions List of individuals and entities subject to assets freeze, travel ban and arms embargo:
- Abdurrahaman Musa Ado, Bashir Ali Yusuf, Ibrahim Ali Alhassan, Muhammad Ibrahim Isah, Salihu Yusuf Adamu, and Surajo Abubakar Mohammad.
- Others are Fannami Alhaji Bukar, Muhammed Musa, Sahabi Ismail, Mohammed Saleh Buba, and three corporate entities, including Alin Yar Yaya General Enterprises, Are Nigeria Limited, and Suhailah Bashir General Enterprises.
The directive to free accounts and halt all transactions with the flagged entities is binding on all capital market operators and stakeholders, with strict reporting and compliance obligations, including:
- Immediate identification and freezing of all assets linked to designated individuals and entities without prior notification
- Mandatory reporting of frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat
- Filing of Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU)
- Reporting of all name matches in financial transactions, whether before or after receiving the sanctions list
- Continuous monitoring and prohibition of dealings with listed persons and entities
- Asset freeze applies broadly to assets directly or indirectly owned or controlled by designated persons.
- Jointly owned assets or those linked through intermediaries.
- Proceeds derived from such assets.
- Assets held by third parties acting on behalf of designated individuals.
SEC stated that all actions taken pursuant to this publication should be immediately communicated to the Secretariat of the Nigeria Sanctions Committee through nigsac@nfiu.gov.ng
More insights
Details accompanying the designation reveal that several of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing activities linked to Boko Haram.
- The offences largely involved collecting funds in Dubai and transferring them to Nigeria to support terrorist operations. Sentences ranged from 10 years imprisonment to life sentences, underscoring the severity of the offences.
- The three entities listed—Alin Yar Yaya General Enterprises, K. Are Nigeria Limited, and Suhailah Bashir General Enterprises—are directly linked to promoters already convicted of terrorism-related crimes.
- 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 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 implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting.
Additionally, 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.
What you should know
The latest SEC 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.
- 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.
- 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 directive reflects Nigeria’s ongoing efforts to align with global financial integrity standards and curb illicit financial flows linked to terrorism in order to justify its recent removal from the FATF list.
By tightening controls and expanding the sanctions net, regulators aim to close loopholes that allow terrorist financing to persist within formal financial channels.
