SEC Orders Asset Freeze On Individuals, Entities Over Terror Links

The Securities and Exchange Commission has directed all capital market operators to immediately freeze assets linked to 10 individuals and three entities newly designated under Nigeria’s sanctions regime, in a move aimed at strengthening efforts to combat terrorism financing.

In a circular issued to operators, the commission said the directive followed the approval of the Nigeria Sanctions Committee in line with the provisions of the Terrorism (Prevention and Prohibition) Act, 2022. The affected individuals and entities have now been added to the Nigeria Sanctions List and are subject to a comprehensive set of restrictions, including asset freezes, travel bans, and arms embargoes.

“All Capital Market Operators are required to immediately identify and freeze, without prior notice, all funds, assets, and any other economic resources belonging to the designated persons and entities,” the SEC said.

The regulator further instructed operators to report all enforcement actions taken to the sanctions committee and file suspicious transaction reports with the Nigerian Financial Intelligence Unit for further analysis.

“CMOs are to immediately file a suspicious transactions report to the NFIU for further analysis on the financial activities of such individuals or entities,” the commission added.

According to the SEC, the freezing directive extends beyond assets directly held by the sanctioned parties to include funds and resources owned jointly, indirectly, or controlled through third parties and proxies.

“This freezing obligation extends to all funds or other assets owned or controlled by the designated persons or entities, including those acting on their behalf or at their direction,” the commission stated.

The SEC warned that failure to comply with the directive could expose financial institutions and market operators to both criminal and civil liabilities, as well as significant reputational damage.

The commission emphasized that the sanctions framework is a preventive tool designed to disrupt the flow of funds to terrorist organisations and related networks, reinforcing Nigeria’s broader efforts to safeguard the integrity of its financial system.

The latest directive comes amid intensified action by the Federal Government to clamp down on terrorism financing. On April 11, authorities released a list of 48 individuals and entities suspected of involvement in terror-related activities, directing financial institutions across the country to freeze associated assets and report suspicious transactions.

Some of the listed individuals and entities are believed to have links to proscribed groups such as the Indigenous People of Biafra, Ansarul Sudan, and the Islamic State West Africa Province.