CBN Orders Banks to Freeze Assets of Six Terror Financing Suspects, Four BDCs
The Central Bank of Nigeria (CBN) has directed banks, payment service banks and other financial institutions to immediately freeze all accounts, funds and assets linked to six individuals and four Bureau de Change (BDC) operators sanctioned over alleged terrorism financing.The directive was issued in a circular signed on behalf of the Director of the CBN’s Compliance Department, Olubunmi Ayodele-Oni, following recent sanctions by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC).
The sanctions are part of ongoing efforts by Nigerian and U.S. authorities to disrupt financial networks allegedly supporting the Islamic State West Africa Province (ISWAP). According to the U.S. Treasury, the designated individuals and businesses were involved in facilitating financial transactions through money transfer channels and foreign exchange operations in support of the terrorist group.
The individuals named in the sanctions are Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma and Yakubu Ogirima Ibrahim.
Also designated are four Nigeria-based Bureau de Change operators: 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, which authorities said are owned or controlled by the sanctioned individuals.
The CBN instructed all regulated financial institutions to immediately identify and freeze, without prior notice, all funds, assets and other economic resources belonging to or controlled, directly or indirectly, by the designated persons and entities.
The directive also applies to companies in which the sanctioned individuals own 50 per cent or more, either individually or collectively.
The apex bank further prohibited financial institutions from making funds, financial services or other economic resources available, directly or indirectly, to the designated individuals or entities.
Banks were directed to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches and submit compliance reports to the CBN within 48 hours. Institutions with no matching accounts are also required to file nil returns.
In addition, the CBN ordered financial institutions to strengthen monitoring for terrorism financing activities by scrutinising suspicious transaction patterns, including rapid movement of funds, the use of money service businesses and transactions involving high-risk jurisdictions.
Banks were also instructed to conduct a comprehensive review of past customer relationships and transactions to identify any links to the sanctioned individuals or entities.
The CBN warned that failure to comply with the directive or the submission of false or misleading information would attract regulatory sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
The directive underscores Nigeria’s intensified efforts, in collaboration with international partners, to combat terrorism financing and strengthen the integrity of the country’s financial system.
