FG Orders Financial Institutions to Freeze Assets Linked to Terror Financing
The Federal Government has directed financial institutions and designated non-financial businesses and professions across the country to strictly comply with sanctions regulations by identifying and freezing assets connected to individuals and entities linked to terrorism financing.
The directive follows recent sanctions imposed by the United States on a Nigerian businessman and several Bureau De Change (BDC) operators accused of facilitating financial transactions for the Islamic State (ISIS).
In a statement issued by the Nigerian Sanctions Committee, authorities stressed the importance of full compliance with existing sanctions measures, including asset-freezing obligations, the submission of Suspicious Transaction Reports, and the prompt reporting of potential matches to relevant regulatory agencies.
The government reiterated its commitment to preventing the country’s financial system from being used to support terrorist activities, emphasizing that individuals and organisations involved in terrorism financing would not be allowed to operate freely within Nigeria’s financial sector.
The move comes after the United States imposed sanctions on a Nigerian national and several foreign exchange firms over allegations of involvement in financial networks linked to ISIS operations across multiple regions.
Nigerian authorities noted that the recent international action complements measures already taken domestically to target individuals and businesses suspected of supporting terrorism through financial transactions.
Earlier this month, the Federal Government expanded its sanctions list by adding several individuals and a Bureau De Change company identified during investigations into alleged terrorism financing activities.
According to the sanctions committee, the coordinated actions by Nigeria and international partners demonstrate a growing effort to disrupt and dismantle financial channels used by terrorist organisations and extremist groups.
The government urged all regulated institutions to remain vigilant, strengthen compliance procedures, and cooperate fully with authorities in efforts to safeguard the integrity of Nigeria’s financial system and combat the financing of terrorism.
