The Securities and Exchange Commission has directed an immediate freeze of assets belonging to 13 newly designated terrorism-linked entities within the capital market, following their listing on the Nigeria Sanctions List by the Nigeria Sanctions Committee.

The designation covers 10 individuals and three organisations.

The directive was issued in a sweeping compliance circular circulated to capital market operators in the early hours of Monday, April 13, ahead of the reopening of market activities for the week.

The Commission said the order is based on the Terrorism (Prevention and Prohibition) Act, 2022, which requires the immediate freezing of all funds, assets, and economic resources connected to designated persons and entities without prior notice.

SEC has notified all Capital Market Operators and stakeholders that, pursuant to Section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, the Nigeria Sanctions Committee has approved the inclusion of new entries on the Nigeria Sanctions List.

The listed individuals and entities are now subject to asset freezes, travel bans, and arms embargoes.

The individuals include Abdurrahaman Musa Ado, Bashir Ali Yusuf, Ibrahim Ali Alhassan, Muhammad Ibrahim Isah, Salihu Yusuf Adamu, Surajo Abubakar Mohammad, Fannami Alhaji Bukar, Muhammed Musa, Sahabi Ismail, and Mohammed Saleh Buba.

The directive to freeze accounts and halt all transactions involving the flagged entities is binding on all capital market operators and stakeholders, with strict reporting and compliance obligations, including:

Immediate identification and freezing of all assets linked to designated individuals and entities without prior notification
Mandatory reporting of frozen assets and attempted transactions to the Nigeria Sanctions Committee Secretariat
Filing of Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU)
Reporting of all name matches in financial transactions, whether before or after receiving the sanctions list

Continuous monitoring and prohibition of dealings with listed persons and entities
Asset freeze applies broadly to assets directly or indirectly owned or controlled by designated persons.
Jointly owned assets or those linked through intermediaries.
Proceeds derived from such assets.
Assets held by third parties acting on behalf of designated individuals.

SEC stated that all actions taken pursuant to the publication must be immediately reported to the Secretariat of the Nigeria Sanctions Committee via [email protected].

According to accompanying details, several of the designated individuals were convicted by the Abu Dhabi Federal Court of Appeal in April 2019 for terrorism financing linked to Boko Haram.
The convictions reportedly involved the collection of funds in Dubai and their transfer into Nigeria to support terrorist activities.

Sentences handed down ranged from 10 years imprisonment to life terms, reflecting the gravity of the offences.

The three entities listed—Alin Yar Yaya General Enterprises, K. Are Nigeria Limited, and Suhailah Bashir General Enterprises—are reportedly linked to promoters who have already been convicted of terrorism-related offences.

This, according to the report, points to a pattern in which corporate structures are allegedly used as conduits for financial transactions, underscoring the need for stronger scrutiny of business entities within the financial system.

The SEC further stressed that the asset-freezing framework is preventive rather than punitive, aimed at disrupting potential financial support networks for terrorism before any funds can be deployed.

The latest SEC alert aligns with its zero-tolerance stance on the enforcement of anti-money laundering and counter-terrorism financing regulations within Nigeria’s capital market, with a strong focus on real-time compliance, detailed reporting, and continuous transaction monitoring.

For market operators, trading systems are required to support rapid name screening, asset tracing, and prompt reporting, while compliance units are expected to take immediate action without prior notice to affected clients.

It is also noted that failure to comply with these directives could expose firms to regulatory sanctions and potentially undermine their credibility in both domestic and international markets.