Terrorism Financing: SEC Orders Immediate Asset Freeze

The Securities and Exchange Commission (SEC) has directed capital market operators in Nigeria to immediately identify and freeze funds, assets and other economic resources linked to a Nigerian citizen and three companies recently sanctioned by the United States Government over alleged financial dealings connected to the Islamic State of Iraq and Syria (ISIS) and ISIS-West Africa.

The directive was contained in a circular titled “Notice of Sanction” issued by the commission.
The SEC directed all Capital Market Regulated Entities (CMREs) to freeze, without prior notice, any funds, assets or other economic resources belonging to the designated individual and companies in their possession.
The affected Nigerian is Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar.
The three companies are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited and Nine to Nine Exchange Bureau De Change Limited.
The commission instructed regulated entities to immediately identify any assets linked to the designated individual or companies and report the action to the Secretariat of the Nigeria Sanctions Committee.
It also directed operators to provide details of assets frozen and other measures taken to comply with the sanctions.
Capital market operators are required to report any attempted transactions involving the designated individual or entities and file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU), where applicable.
The SEC further instructed operators to report cases in which the names of the sanctioned individual or companies match names appearing in financial transactions.
According to the commission, the reporting requirement applies irrespective of whether the transaction occurred before or after the operators received the sanctions notice.
The SEC also directed regulated entities to prohibit future dealings with the designated individual and companies and maintain ongoing monitoring of transactions connected to them.
The commission said the measures were aimed at preventing Nigeria’s financial system from being used to facilitate prohibited financial activities.
It directed that any findings and compliance reports be submitted to the Nigeria Sanctions Committee through the designated reporting channel.
The SEC said the directive took immediate effect and warned capital market operators against non-compliance.
According to the commission, failure to comply would constitute a violation of the Investments and Securities Act, 2025, and its Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.
It warned that defaulters could face regulatory sanctions, including fines, suspension of operations or revocation of their registration.