BREAKING: SEC Freezes Nigerian’s Funds, Three Companies Over Alleged ISIS Links

The Securities and Exchange Commission (SEC) has directed operators in Nigeria’s capital market to immediately identify and freeze funds, assets and other economic resources linked to a Nigerian citizen and three companies recently sanctioned by the United States Government over alleged financial connections to the Islamic State of Iraq and Syria (ISIS) and ISIS-West Africa.

The directive was contained in a circular titled “Notice of Sanction” published on the commission’s website.

Under the directive, all Capital Market Regulated Entities (CMREs) are required to freeze, without prior notice, any funds, assets or economic resources belonging to the sanctioned individual and companies and report the action to the Secretariat of the Nigeria Sanctions Committee.

The Nigerian named on the sanctions list is Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar.

The three companies are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited, and Nine to Nine Exchange Bureau De Change Limited.

The SEC instructed capital market operators to act immediately once they identify any funds, assets or other economic resources belonging to the designated individual or entities.

It directed CMREs to “immediately identify and freeze, without prior notice, all funds, assets, and any other economic resources belonging to the designated individual and entities in their possession” and report the action to the Nigeria Sanctions Committee.

Operators are also required to provide details of all assets frozen and the measures taken to comply with the sanctions.

In addition, the commission directed regulated entities to report any attempted transactions involving the sanctioned individual or companies.

According to the SEC, the measures are aimed at preventing Nigeria’s financial system from being used to facilitate prohibited financial activities.

Suspicious Transactions Must Be Reported

Beyond freezing the affected assets, the SEC ordered capital market operators to immediately submit suspicious transaction reports to the Nigerian Financial Intelligence Unit (NFIU) for further analysis.

Operators must also notify the NFIU whenever the name of the sanctioned individual or any of the listed companies matches a name appearing in a financial transaction.

The directive applies regardless of whether the transaction occurred before or after the operators received the sanctions notice.

The SEC further instructed capital market operators to stop future dealings with the sanctioned individual and entities and maintain continuous monitoring of transactions linked to them.

Any relevant findings are to be reported to the Nigeria Sanctions Committee through the designated official channel.

The commission said the directive took immediate effect and warned regulated entities against non-compliance.

According to the SEC, failure to comply with the directive would constitute a violation of the Investments and Securities Act, 2025, as well as the commission’s Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.

The commission warned that violators could face regulatory sanctions, including fines, suspension of operations or revocation of their registration.