By Oluwakemi Kindness
The Nigeria Securities and Exchange Commission (SEC) has directed an immediate freeze on the assets of 13 individuals and entities recently linked to terrorism financing activities within the capital market.
The directive, issued to all Capital Market Operators (CMOs), follows the designation of 10 individuals and three organizations on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
According to the SEC, the action is backed by the Terrorism (Prevention and Prohibition) Act, 2022, which mandates the freezing of all funds, assets, and economic resources associated with designated persons or entities without prior notice.
Under the directive, capital market operators are required to swiftly identify and freeze all accounts connected to the listed individuals and organisations.
They must also halt any ongoing or attempted transactions and report such actions to the Nigeria Sanctions Committee Secretariat.
The sanctions go beyond asset freezes, extending to travel bans and arms embargoes on those listed.
Details released alongside the directive indicate that several of the affected individuals were previously convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing linked to Boko Haram.
Investigations revealed that funds were allegedly raised in Dubai and transferred to Nigeria to support terrorist operations.
Authorities say the case highlights the growing use of corporate entities as channels for illicit financial flows, raising concerns about vulnerabilities within the financial system.
The SEC stressed that the asset freeze is a preventive measure aimed at disrupting financial networks that support terrorism, rather than a punitive action.
Market operators and stakeholders have been urged to maintain strict compliance, with the Commission warning that failure to adhere to the directive could attract regulatory sanctions.
