SEC orders immediate asset freeze on 13 firms over terrorism financing links in Nigeria
Nigeria's SEC has directed the immediate freezing of assets belonging to 13 capital market entities suspected of links to terrorism financing. The action follows the designation of 10 individuals and three organizations on the Nigeria Sanctions List by the Nigeria Sanctions Committee under the Terrorism (Prevention and Prohibition) Act, 2022. The law mandates freezing all funds, assets, and economic resources associated with designated persons without prior notice.
Capital market operators have been instructed to immediately identify and freeze all accounts linked to those listed, halt any ongoing or future transactions, and report both frozen assets and attempted dealings to the Sanctions Committee Secretariat. Several individuals had previously been convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for financing terrorism tied to Boko Haram, with penalties ranging from 10-year jail terms to life imprisonment.
The SEC emphasized the asset freeze is preventive, aimed at disrupting funding networks before resources can be deployed. Non-compliance could attract severe consequences including civil and criminal penalties, as well as reputational risks. The directive extends to Designated Non-Financial Businesses and Professions (DNFBPs), reflecting broader enforcement across Nigeria's financial ecosystem. SEC urged operators to strengthen real-time monitoring systems and ensure effective name screening without delay.