By Oluwakemi Kindness
The Securities and Exchange Commission (SEC) has directed capital market operators to freeze the funds, assets and economic resources of six individuals and three entities designated as terrorism financiers.
SEC issued the directive in a circular on Friday to all Capital Market Regulated Entities (CMREs), citing the Terrorism Prevention and Prohibition Act, 2022.
The six individuals are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim.
The designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, the individuals and entities were designated by the Nigeria Sanctions Committee over alleged involvement in financing or facilitating terrorist activities linked to the Islamic State West Africa Province (ISWAP).
The commission said some of the individuals allegedly provided financial or material support to ISWAP cells, while others were linked to transactions involving terrorism-financing networks.
SEC Orders Immediate Freeze
The SEC directed regulated operators to identify and freeze the assets immediately and without prior notice.
Operators must also report all frozen assets and other compliance actions to the Secretariat of the Nigeria Sanctions Committee.
The directive covers attempted transactions involving the designated individuals and entities.
The SEC also ordered capital market operators to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for further analysis.
Operators must report suspicious name matches in financial transactions, regardless of whether the transactions occurred before or after the sanctions list was issued.
Operators Face Sanctions
The SEC instructed regulated entities to prohibit dealings with the designated persons and entities and maintain ongoing monitoring for transactions involving them.
The commission said the directive takes immediate effect.
It warned that failure to comply would violate the Investments and Securities Act, 2025, as well as the SEC’s Anti-Money Laundering and Combating the Financing of Terrorism rules.
According to the SEC, violations could attract fines, suspension of operations or revocation of registration.
The commission also reminded capital market operators to promptly report all unusual or suspicious transactions to the NFIU.
