The Central Bank of Nigeria (CBN) has directed all banks and financial institutions to immediately freeze accounts and assets belonging to individuals and organisations linked to terrorism financing.
The directive, contained in a circular issued on Thursday and signed by Olubunmi Ayodele-Oni, follows recent designations by the Nigeria Sanctions Committee and the United States Treasury Department’s Office of Foreign Assets Control (OFAC).
According to TheCable, the action comes after US authorities named three individuals and six entities allegedly involved in financing the terrorist group Islamic State (ISIS). The list includes three Nigerian Bureau De Change (BDC) operators based in Lagos and Kano.
The CBN instructed financial institutions to freeze, without prior notice, all funds, assets and economic resources owned or controlled directly or indirectly by the designated persons and entities.
Banks have also been directed to screen existing customers, beneficial owners and transactions against the updated sanctions list and ensure that no funds, financial services or economic resources are made available to those affected.
The apex bank further ordered financial institutions to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) whenever there is a confirmed or attempted match involving sanctioned individuals or entities.
In addition, banks must submit reports to the CBN within 48 hours detailing affected accounts, amounts frozen and actions taken. Institutions that find no matches are still required to file nil returns.
The regulator also instructed financial institutions to strengthen monitoring for terrorism financing indicators, including rapid movement of funds, the use of money service businesses and transactions involving high-risk jurisdictions.
The CBN warned that non-compliance could attract penalties under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws. It added that compliance would be monitored through off-site reviews, on-site examinations and supervisory engagements.
The development follows growing efforts by Nigerian and international authorities to disrupt financial networks linked to terrorist organisations.
