The Central Bank of Nigeria (CBN) has directed all banks and other financial institutions across the country to immediately freeze accounts belonging to individuals and organisations linked to terrorism financing.
The directive was contained in a circular signed by the CBN’s Director of Financial Policy and Regulation, Olubunmi Ayodele-Oni.
According to the apex bank, the order follows recent designations issued by the Nigeria Sanctions Committee and the United States Treasury Department’s Office of Foreign Assets Control (OFAC).
The latest move comes after the U.S. government imposed sanctions on three individuals and six entities allegedly involved in financing the Islamic State (ISIS), including three Nigerian Bureau de Change (BDC) operators.
The sanctioned Nigerian companies are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited and Nine to Nine Exchange Bureau De Change Limited, all of which were reportedly linked to an alleged ISIS financing network.
The CBN instructed financial institutions to immediately freeze, without prior notice, all funds, assets and other economic resources owned or controlled, directly or indirectly, by the designated persons and entities.
Banks were also directed to screen existing customers, beneficial owners and financial transactions against the updated sanctions list to identify possible matches.
In addition, financial institutions have been instructed not to make any funds, financial services or economic resources available to the affected individuals or organisations.
The apex bank further directed banks to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) whenever confirmed or attempted matches are identified.
Banks Must Report to CBN
Under the directive, banks must also submit reports to the CBN within 48 hours detailing affected accounts, amounts frozen and actions taken.
The regulator urged financial institutions to strengthen monitoring for possible terrorism financing activities, including unusual movement of funds, transactions involving money service businesses and dealings linked to high-risk jurisdictions.
The CBN warned that any institution that fails to comply with the directive could face regulatory sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
To ensure compliance, the apex bank said it would conduct off-site reviews, on-site examinations and supervisory engagements across the financial sector.
Meanwhile, the CBN assured Nigerians that the directive is targeted only at designated individuals and entities involved in terrorism financing investigations and does not affect legitimate customers. The bank reiterated that customers’ deposits and funds in the banking system remain safe.
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