The Securities and Exchange Commission (SEC) has directed the immediate freezing of assets belonging to 13 capital market entities and individuals allegedly linked to terrorism financing.
The directive follows their designation on the Nigeria Sanctions List by the Nigeria Sanctions Committee, which includes 10 individuals and three entities flagged for sanctions enforcement.
According to the SEC, the order is backed by the Terrorism (Prevention and Prohibition) Act 2022, which requires the immediate freezing of funds, assets, and economic resources connected to designated persons and organisations without prior notice.
The commission instructed all capital market operators to immediately identify and freeze related assets, halt transactions, and submit mandatory reports of frozen funds and attempted transactions to the sanctions committee.
Investigations linked some of the designated individuals to convictions by the Abu Dhabi Federal Court of Appeal in 2019 for terrorism financing activities allegedly associated with Boko Haram, involving the movement of funds from Dubai to Nigeria.
The SEC emphasized that the asset-freezing measures are preventive rather than punitive, aimed at disrupting financial networks that may support terrorism before funds are deployed.
It also warned that non-compliance could result in severe civil and criminal penalties, as well as reputational risks for financial institutions.
The directive extends beyond banks to include Designated Non-Financial Businesses and Professions (DNFBPs), signaling broader enforcement across Nigeria’s financial system.
