The Securities and Exchange Commission (SEC) of Nigeria has issued an urgent directive mandating capital market operators to freeze assets of 13 terrorism-financing suspects, spotlighting its aggressive push against illicit funds.
The order, released early Monday ahead of weekly market activities, stems from the Nigeria Sanctions Committee’s addition of 10 individuals and 3 companies to the national sanctions list. It invokes Section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, requiring instant freezes on funds, assets, and resources tied to these parties—no prior notice needed.
Designated Individuals and Entities
- Individuals: Abdurrahaman Musa Ado, Bashir Ali Yusuf, Ibrahim Ali Alhassan, Muhammad Ibrahim Isah, Salihu Yusuf Adamu, Surajo Abubakar Mohammad, Fannami Alhaji Bukar, Muhammed Musa, Sahabi Ismail, and Mohammed Saleh Buba.
- Companies: Alin Yar Yaya General Enterprises, Are Nigeria Limited, and Suhailah Bashir General Enterprises.
Several individuals were convicted by Abu Dhabi’s Federal Court of Appeal in 2019 for channeling funds from Dubai to Boko Haram in Nigeria, with sentences from 10 years to life. The firms are directly connected to these convicts, exposing how businesses mask terror financing.
Strict Compliance Mandates for Operators
SEC demands that capital market operators (CMOs) and stakeholders:
- Instantly identify and freeze all direct, indirect, joint, or intermediary-linked assets.
- Report frozen assets and suspicious transactions to the Nigeria Sanctions Committee Secretariat (nigsac@nfiu.gov.ng).
- Submit Suspicious Transaction Reports (STRs) to the Nigerian Financial Intelligence Unit (NFIU).
- Screen all transactions for name matches, pre- or post-listing.
- Prohibit any dealings, with ongoing monitoring.
The freeze covers proceeds from such assets and those held by third parties on behalf of the listed parties. It extends to Designated Non-Financial Businesses and Professions (DNFBPs), broadening enforcement.
Broader Implications
SEC also frames this as a preventive measure to choke terror funding, not punishment, with non-compliance risking civil, criminal penalties, and reputational harm. It aligns with Nigeria’s zero-tolerance AML/CFT stance, real-time screening tech, and efforts to meet global standards post-FATF grey-list exit. Operators must report actions immediately to fortify Nigeria’s financial defenses against terrorism.
