By Seun Ibiyemi
The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions to immediately freeze accounts and assets linked to individuals and entities sanctioned for alleged terrorism financing.
The directive, contained in a circular issued on Thursday and signed by the CBN’s Director of Compliance, Olubunmi Ayodele-Oni, followed fresh sanctions imposed by the Nigeria Sanctions Committee and the United States Treasury Department’s Office of Foreign Assets Control (OFAC) over alleged links to the Islamic State (ISIS).
According to the apex bank, the sanctions target three individuals and six entities accused of facilitating terrorism financing. Among those listed are three Bureau De Change (BDC) operators based in Lagos and Kano, whose activities are allegedly connected to the terror financing network.
The CBN instructed financial institutions to immediately freeze, without prior notice, all funds, assets and other economic resources belonging to or controlled directly or indirectly by the designated persons and entities.
Banks were also directed to screen existing customers, beneficial owners and ongoing transactions against the updated sanctions list to identify possible matches.
The regulator further ordered financial institutions to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to any of the blacklisted individuals or organisations.
The circular also requires banks to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) where confirmed or suspected matches are identified.
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“Financial institutions must submit reports to the CBN within 48 hours, detailing the status of any matches, affected accounts, amounts frozen, and actions taken. Nil returns are mandatory where no matches are identified,” the circular stated.
In addition, the apex bank directed financial institutions to intensify monitoring of transactions exhibiting terrorism financing indicators, including rapid movement of funds, extensive use of money service businesses and transactions involving high-risk jurisdictions.
The CBN warned that failure to comply with the directive would attract severe regulatory sanctions 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 other supervisory measures to ensure strict implementation of the directive.
