CBN Imposes Immediate Asset Freezes Linked to Terrorism Financing
The Central Bank of Nigeria (CBN) has ordered all banks and financial institutions to urgently freeze accounts and assets associated with six individuals and four Bureau de Change (BDC) operators designated for terrorism-related activities. This directive reflects the CBN’s commitment to combating terrorist financing in the country.
In a circular issued on Thursday, signed by CBN’s Director of Compliance, Mr. Olubunmi Ayodele Oni, the bank stated that the sanctions align with designations from the Nigeria Sanctions Commission (NIGSAC) and the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) under the recent Executive Order 13224 (as amended).
The CBN indicated that the Nigeria Sanctions List was updated on June 18, and the new designations impose binding sanctions that necessitate immediate compliance from all regulated financial entities. The individuals named in the sanctions are Muktar Muhammad Adamu, Babangida Muhammad Adamu Hamajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adam Chiroma, and Yakubu Ogilima Ibrahim.
Identified Bureau de Change Operators
Alongside the individuals, the CBN has identified four Nigeria-based money service businesses and exchange bureau operators associated with them. These are Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited, and Abbal Bako & Sons Bureau de Change Limited. This measure is part of the CBN’s broader strategy to disrupt the financial networks that facilitate terrorism.
The updated sanctions list mandates that financial institutions conduct immediate screening of their existing customers, beneficiaries, and all incoming and outgoing transactions against a current sanctions list, taking into consideration known aliases and identifiers. Financial entities are expected to act swiftly to identify and freeze any assets belonging to the specified individuals and companies without prior notice.
Financial Institutions Required to Report Suspicious Activity
Additionally, the CBN directed banks to file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches detected. Compliance reports must be submitted to the CBN within 48 hours of identifying any relevant transactions. Reports should detail whether a match was found, the affected accounts, the amounts frozen, and the specific actions taken by the financial institutions.
Financial institutions are also advised to enhance their monitoring systems for indicators of terrorist financing. This includes paying close attention to structured transactions, rapid fund transfers, and engagements with high-risk jurisdictions. The CBN has called for retrospective investigations into past transactions and business relationships linked to the designated individuals.
Regulatory Measures and Compliance Monitoring
The CBN has underscored the seriousness of compliance with these sanctions, warning of regulatory consequences for financial institutions that fail to adhere to the new directives. All reports submitted must be accurate, complete, and verifiable; any false or misleading information may result in penalties under the Banks and Other Financial Institutions Act, 2020 (BOFIA) and other relevant laws.
In its effort to ensure compliance, the CBN will implement off-site reviews, on-site inspections, and supervisory engagements. By enforcing these measures, the CBN aims to tighten controls on financial transactions that may inadvertently support terrorism.
