SEC Freezes Assets of 13 Terror-Linked Entities in Capital Market Crackdown

Nigeria’s Securities and Exchange Commission has ordered an immediate freeze on all funds and assets linked to 13 entities accused of terrorism financing, directing all capital market operators to comply without prior notice.

The directive, issued Monday, targets 10 individuals and three corporate entities that were recently designated and blacklisted on the Nigeria Sanctions List by the Nigeria Sanctions Committee.

The Commission anchored its move on the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the immediate freezing of all funds, assets, and economic resources linked to designated persons and organisations, without prior notice.

Who’s on the list

Several of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing linked to Boko Haram. The offences largely involved collecting funds in Dubai and transferring them to Nigeria to support terrorist operations. Sentences ranged from 10 years to life imprisonment.

New entries on the sanctions list include Abdurrahaman Musa Ado, Bashir Ali Yusuf, and Ibrahim Ali Alhassan, along with firms such as Alin Yar Yaya General Enterprises, Are Nigeria Limited, and Suhailah Bashir General Enterprises.

Not just banks

The SEC made clear that this directive extends beyond financial institutions. It covers Designated Non-Financial Businesses and Professions (DNFBPs) as well, meaning estate agents, law firms, car dealerships, and other businesses that handle large transactions are all expected to screen against the sanctions list.

“This highlights a pattern where corporate vehicles are used as channels for financial flows, reinforcing the need for heightened scrutiny of business entities within the financial system,” the Commission said.

The SEC also emphasised that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed.

What market operators must do now

All Capital Market Operators have been told to immediately identify and freeze assets linked to the designated individuals and entities, without notifying the affected clients. They must also report frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.

For market operators, trading systems must be capable of rapid name screening, asset tracing, and reporting, while compliance teams are expected to act without delay, the SEC said.

The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting.

This is the latest in a series of moves by Nigerian authorities to choke off terrorism financing channels, coming just days after the government published its first-ever public list of 48 alleged terrorism sponsors.

Sources: Securities and Exchange Commission (Nigeria), Channels TV, BusinessDay, Punch