Nigeria’s central bank has ordered banks and other financial institutions to immediately freeze the accounts, assets and financial transactions of individuals and bureaux de change (BDCs) sanctioned over alleged terrorism financing.
The directive, issued in a circular dated June 24, follows an update to the Nigeria Sanctions List that took effect on June 18 and is binding on all regulated financial institutions.
The Central Bank of Nigeria (CBN) said the sanctions were imposed by the Nigeria Sanctions Committee (NIGSAC) and the United States Treasury Department’s Office of Foreign Assets Control (OFAC) under U.S. Executive Order 13224, as amended.
Financial institutions were instructed to identify and immediately freeze, without prior notice, all funds, assets and other economic resources belonging to or controlled, directly or indirectly, by the designated individuals and entities.
The directive also covers companies that are 50 percent or more owned, individually or collectively, by sanctioned persons.
More Read
The action follows sanctions announced earlier this week by the United States against a Lagos-based bureau de change operator and several companies alleged to have facilitated financial transactions on behalf of the Islamic State West Africa Province (ISWAP).
According to OFAC, the designated businesses were allegedly used to channel funds to the militant group.
The CBN said banks and other regulated institutions must ensure that no funds, financial services or economic resources are made available, directly or indirectly, to the listed individuals or entities.
More Read
They have also been instructed to report any identified assets to the relevant authorities and comply immediately with the sanctions measures.
The move forms part of broader efforts by Nigerian authorities, working with international partners, to disrupt financial networks allegedly linked to terrorism financing and strengthen the country’s anti-money laundering and counter-terrorism financing framework.
