SEC Freezes Assets of Six Terrorist Financiers in Nigeria

• The SEC has directed capital market operators to freeze assets linked to six designated terrorist financiers.
• Regulated firms must file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis.
• Non-compliance with the directive constitutes a severe violation of the Investments and Securities Act 2025 and the SEC Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.

The SEC has instructed regulated firms to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis.

The Securities and Exchange Commission (SEC) has taken a significant step in combating terrorism financing in Nigeria by directing capital market operators to freeze the assets of six designated terrorist financiers. The directive, issued via a circular to all Capital Market Regulated Entities, is a result of the provisions outlined in the Terrorism Prevention and Prohibition Act 2022. The six individuals and three entities placed on the sanctions list are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, Yakubu Ogirima Ibrahim, Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change. The SEC's action is part of the Nigerian authorities' intensified efforts to disrupt the financial lifelines of insurgent groups operating in the North-East and North-Central regions.

The directive issued by the SEC is mandated by the provisions of the Terrorism Prevention and Prohibition Act 2022 and Nigeria's Sanctions Framework. Under these laws, financial institutions and capital market operators are required to act swiftly on sanctions lists issued by the Nigeria Sanctions Committee (NSC) to prevent illicit funds from flowing through the formal financial system. The SEC has instructed regulated firms to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis. This move is aimed at preventing the channelling of funds linked to terrorist activities through the formal financial system.

The SEC's directive has significant implications for capital market operators in Nigeria, who are now required to freeze assets linked to designated terrorist financiers and file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit. This move is part of the broader efforts by Nigerian authorities to combat terrorism financing and disrupt the financial lifelines of insurgent groups operating in the North-East and North-Central regions. The directive also highlights the importance of anti-money laundering regulations in Nigeria, which are aimed at preventing the flow of illicit funds through the formal financial system.

Lawyers should be aware that capital market operators in Nigeria are now required to freeze assets linked to six designated terrorist financiers, and file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit for deep analysis.

Source: Original reporting via PUNCH