Anti-terror crackdown: SEC blacklists 13, enforces strict compliance across capital market

Nigeria’s Securities and Exchange Commission (SEC) has directed the immediate freezing of assets belonging to 13 newly identified entities allegedly linked to terrorism financing within the capital market.

The directive, titled “Commission’s sweeping compliance directive issued to capital market operators,” followed the designation and blacklisting of 10 individuals and three entities on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
According to the SEC, the action is backed by provisions of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the freezing of all funds, assets, and economic resources connected to the affected persons and organisations without prior notice.
The Commission stated that all Capital Market Operators (CMOs) and relevant stakeholders have been formally notified that, in line with Section 49 of the Act, the Nigeria Sanctions Committee has approved additional entries subject to asset freeze, travel bans, and arms embargo.
The directive makes it compulsory for operators to immediately identify and freeze all accounts and assets linked to the listed individuals and entities. It also requires mandatory reporting of any frozen assets or attempted transactions to the Nigeria Sanctions Committee Secretariat.
Further details revealed that some of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing related to Boko Haram. The offences reportedly involved raising funds in Dubai and transferring them to Nigeria to support terrorist activities. Sentences ranged from 10 years imprisonment to life terms.
The SEC noted that the development highlights a pattern where corporate structures are used to channel illicit financial flows, stressing the need for increased scrutiny of businesses within the financial system.
It also clarified that the asset-freezing measure is preventive, not punitive, aimed at disrupting financial support for terrorism before funds are deployed.
The Commission warned that failure to comply with the directive could attract severe consequences, including civil and criminal liabilities, as well as reputational damage for defaulting institutions.
Additionally, the directive extends beyond traditional financial institutions to cover Designated Non-Financial Businesses and Professions (DNFBPs), signaling a broader enforcement strategy across Nigeria’s financial ecosystem.
The SEC emphasized its zero-tolerance stance on anti-money laundering and counter-terrorism financing (AML/CFT) violations, highlighting the need for real-time compliance, detailed reporting, and continuous transaction monitoring.
It added that market operators must ensure their systems can quickly screen names, trace assets, and generate reports, while compliance teams are expected to act promptly without notifying affected clients.
The Commission concluded that non-compliance not only attracts regulatory sanctions but also risks undermining the credibility of institutions in both local and international markets.