SEC Orders Immediate Asset Freeze on 13 Entities Over Alleged Terror Financing Links

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The Securities and Exchange Commission (SEC) has directed the immediate freezing of assets belonging to 13 recently designated entities accused of involvement in terrorism financing activities within Nigeria’s capital market.

The directive affects 10 individuals and three corporate organisations that were added to the Nigeria Sanctions List by the Nigeria Sanctions Committee.

In a compliance circular titled “Commission’s sweeping compliance directive issued to capital market operators,” the SEC said the action is in line with the provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which requires the swift freezing of funds and economic resources linked to designated persons and entities without prior notification.

According to the Commission, all capital market operators are required to immediately identify, restrict, and freeze any assets associated with the listed individuals and organisations. It also mandated operators to report frozen assets and any attempted transactions to the Nigeria Sanctions Committee Secretariat.

The SEC stressed that the directive is compulsory and must be implemented across the financial sector without delay, warning that non-compliance would attract serious regulatory sanctions.

Some of the affected individuals, according to the Commission, had previously been convicted for terrorism financing offences by the Abu Dhabi Federal Court of Appeal in 2019. The cases were linked to activities connected with Boko Haram, including the movement of funds from Dubai into Nigeria to support terrorist operations. Sentences reportedly ranged from long-term imprisonment to life terms.

The Commission also noted that certain corporate entities were allegedly used as vehicles to disguise and channel illicit financial flows, warning that such practices highlight the need for stronger scrutiny of business structures within the financial system.

SEC further explained that the asset-freezing measures are preventive in nature, aimed at disrupting potential funding channels for terrorism before they can be used.

It added that the directive extends beyond traditional financial institutions to include designated non-financial businesses and professions, reflecting a broader enforcement approach against money laundering and terrorism financing.

The regulator emphasized that capital market operators must enhance real-time monitoring, screening systems, and compliance reporting mechanisms to ensure immediate detection and action on flagged accounts.

It also warned that failure to comply could result in both civil and criminal penalties, as well as reputational damage for affected institutions in local and international markets.

SEC reaffirmed its zero-tolerance stance on anti-money laundering and counter-terrorism financing violations, stressing that strict adherence to the directive is essential to maintaining the integrity of Nigeria’s financial system.