Nigeria’s Securities and Exchange Commission (SEC) has ordered an immediate asset freeze of the 13 new alleged terrorism-linked entities across the capital market. A directive titled ‘Commission’s sweeping compliance directive issued to capital market operators’, noted that the move was after the 10 individuals and three entities were designated and blacklisted on the Nigeria Sanctions List by the Nigeria Sanctions Committee.
Mandatory reporting of frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat.” Details accompanying the designation reveal that several of the individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing activities linked to Boko Haram.
The offences largely involved the alleged collection of funds in Dubai and transferring them to Nigeria to support terrorist operations. Sentences ranged from 10 years imprisonment to life sentences, underscoring the severity of the offences. “This highlights a pattern where corporate vehicles are used as channels for financial flows, reinforcing the need for heightened scrutiny of business entities within the financial system.
“The SEC also emphasized that the asset-freezing mechanism is preventive rather than punitive, designed to disrupt financial support systems for terrorism before funds can be deployed. “The implications for non-compliance are severe, including both civil and criminal liabilities, as well as reputational damage for institutions found wanting.
Additionally, the directive extends beyond traditional financial institutions to include Designated Non-Financial Businesses and Professions (DNFBPs), signalling a more comprehensive enforcement approach across Nigeria’s financial ecosystem.” READ ALSO: Nigeria’s Economy In Shock – Edun