The Securities and Exchange Commission (SEC) has directed capital market operators in Nigeria to immediately identify and freeze funds, assets and other economic resources linked to a Nigerian citizen and three companies recently sanctioned by the United States Government over alleged financial dealings connected to the Islamic State of Iraq and Syria (ISIS) and ISIS-West Africa.
The directive was contained in a circular titled “Notice of Sanction” published on the commission’s website.
The SEC ordered all Capital Market Regulated Entities (CMREs) to freeze the affected assets without prior notice and report the action to the Nigeria Sanctions Committee.
The Nigerian named on the sanctions list is Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar.
The three companies are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited and Nine to Nine Exchange Bureau De Change Limited.
According to the SEC, capital market operators must act immediately once they identify any funds, assets or other economic resources belonging to the sanctioned individual or companies.
The commission directed regulated entities to freeze such assets and submit details of the assets affected and the steps taken to comply with the directive to the Nigeria Sanctions Committee.
Operators are also required to report any attempted transactions involving the sanctioned individual or companies.
The SEC said the measures were aimed at preventing Nigeria’s financial system from being used to facilitate prohibited financial activities.
It further directed capital market operators to file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis.
Where the names of the sanctioned individual or companies appear in financial transactions, operators are required to report the cases to the NFIU. The directive applies to transactions carried out both before and after the sanctions notice was received.
The commission also ordered operators to stop future dealings with the sanctioned individual and companies and maintain ongoing monitoring of any transactions linked to them.
Any relevant findings are to be reported to the Nigeria Sanctions Committee through info@nigsac.gov.ng.
The SEC said the directive took immediate effect and warned regulated entities against non-compliance.
According to the commission, failure to comply would constitute a violation of the Investments and Securities Act, 2025, as well as its Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.
It warned that defaulters could face regulatory action, including fines, suspension of operations or revocation of their registration.
