SEC Cracks Down: Orders Immediate Freeze On 13 Entities Over Terror Financing
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Nigeria’s Securities and Exchange Commission (SEC) has ordered the immediate freezing of assets belonging to 13 entities recently identified for alleged involvement in terrorism financing within the capital market.
The directive affects 10 individuals and three companies, following their addition to the Nigeria Sanctions List by the Nigeria Sanctions Committee.
In a circular outlining the decision, the SEC said the move is backed by the provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which requires authorities to freeze all funds and assets linked to designated persons or organisations without prior notice.
The Commission stressed that all capital market operators and relevant stakeholders must comply fully and without delay, describing the directive as mandatory across the financial system.
It instructed operators to quickly identify and freeze any assets connected to the listed entities, and to report both frozen accounts and any attempted transactions to the Nigeria Sanctions Committee Secretariat.
According to the SEC, some of the affected individuals had previously been convicted for terrorism financing, with judgments delivered by the Abu Dhabi Federal Court of Appeal in April 2019. The cases reportedly involved raising funds abroad and transferring them to Nigeria to support extremist activities linked to Boko Haram.
The Commission also noted that certain corporate entities were used as channels to move illicit funds, highlighting concerns about how businesses can be exploited for illegal financial flows.
It explained that the asset freeze is a preventive measure aimed at cutting off financial support for terrorism before such funds can be used.
The SEC warned that failure to comply with the directive could lead to serious consequences, including legal penalties and reputational damage for defaulting institutions.
The order also extends to designated non-financial businesses and professions, signalling a broader enforcement strategy across Nigeria’s financial landscape.
Reaffirming its stance, the Commission said it maintains zero tolerance for violations related to money laundering and terrorism financing, and called for strict monitoring, real-time compliance, and prompt reporting by all operators.
