By Abu Adamu
The Central Bank of Nigeria (CBN) has ordered banks and other financial institutions to immediately freeze all accounts and assets linked to individuals and organisations designated for alleged terrorism financing, following fresh sanctions by Nigerian and United States authorities.
In a circular issued on Thursday and signed by the Director of Compliance, Olubunmi Ayodele-Oni, the apex bank directed financial institutions to enforce the sanctions without prior notice to the affected customers.
The directive followed recent designations by the Nigeria Sanctions Committee and the United States Treasury Department’s Office of Foreign Assets Control (OFAC), which recently sanctioned three individuals and six entities accused of facilitating financial transactions for the Islamic State (ISIS).
Among those listed are three Nigerian Bureau de Change (BDC) operators based in Lagos and Kano, allegedly involved in financing activities linked to the terrorist organisation.
The CBN instructed banks to “immediately freeze, without prior notice, all funds, assets and other economic resources belonging to, owned, held or controlled, directly or indirectly, by the designated persons and entities.”
It also directed financial institutions to immediately screen their existing customers, beneficial owners, and transactions against the updated sanctions list and ensure that no funds, financial services, or economic resources are made available, directly or indirectly, to the sanctioned individuals or organisations.
The apex bank further ordered banks to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) whenever confirmed or attempted matches are identified.
Financial institutions are also required to submit compliance reports to the CBN within 48 hours, detailing affected accounts, amounts frozen, and actions taken. Even institutions that record no matches must file mandatory “nil returns,” the circular stated.
As part of enhanced anti-terrorism financing measures, the CBN directed banks to intensify surveillance for suspicious transactions, including rapid movement of funds, the use of money service businesses, and transactions involving high-risk jurisdictions.
The regulator warned that failure to comply with the directive would attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
The CBN added that it would conduct off-site reviews, on-site examinations, and other supervisory engagements to ensure strict compliance with the sanctions regime as part of efforts to strengthen Nigeria’s anti-money laundering and counter-terrorism financing framework.