The Central Bank of Nigeria on Tuesday rolled out a stronger supervisory framework aimed at deterring the use of Nigerian banks and financial institutions for terrorism financing and other abuses.
In a statement, the apex bank’s Acting Director, Corporate Communications/Investor Relations Department, Hakama Sidi-Ali, said the CBN has made terrorism financing supervision one of its current priorities.
According to her, the focus forms part of the bank’s ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors.
She explained that the new push covers four broad areas, namely how financial institutions manage terrorism financing risk, how they monitor transactions for signs of terrorism financing, how they carry out targeted financial sanctions, and how they report suspicious transactions linked to terrorism.
She said the apex bank would not sit back and wait for problems to surface on their own, adding that it plans to adopt a risk-based approach, meaning that banks and institutions seen as more exposed to this kind of risk will attract closer attention.
Sidi-Ali said, “This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system. Further supervisory engagement will be undertaken as appropriate.”
According to her, the bank will continue to apply a risk-based supervisory approach, including on-site and off-site engagement, to support effective Anti-Money Laundering, Combating the Financing of Terrorism, and Countering Proliferation Financing controls across the financial sector, in line with existing legal and regulatory obligations.
She added that further supervisory engagement would be undertaken as appropriate, suggesting that more steps could follow depending on what the bank’s checks turn up.
In line with the provisions of the Terrorism Prevention and Prohibition Act, 2022, the Nigeria Sanctions Committee recently designated six individuals and three entities as terrorist financiers and subsequently added them to the Nigeria Sanctions List.
The sanctioned individuals included Babangida Muhammed Adamu Hammajam, listed for involvement in terrorism financing and support to the Islamic State West Africa Province, and Abdullahi Umar Usman, listed for providing material support to a designated terrorist organisation through repeated financial transactions.
Also listed was Ibrahim Abubakar, cited for involvement in terrorism financing and membership of ISWAP.
Others were Adamu Chiroma, listed for involvement in terrorism financing using a Bureau De Change and related corporate entities to facilitate the movement of funds linked to terrorist activities, and Muktar Muhammad Adamu, listed for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell.
The sixth individual, Yakubu Ogirima Ibrahim, was listed for providing material and financial support to the ISWAP Kogi cell.
The sanctioned entities were Nine to Nine BDC Ltd, with RC No: 1462752, listed for involvement in facilitating the movement of funds connected to the ISWAP Okene financing network, and Generation Currency BDC Ltd, with RC No: 1555604, listed for the same reason.
The third sanctioned entity was Abbal Bako & Sons Bureau De Change, with BN: 2323328, listed for involvement in facilitating and channelling funds linked to the ISWAP Okene financing network.
A national circular directed all operators to immediately identify and freeze, without prior notice, all funds, assets, and any other economic resources in their possession belonging to the designated individuals and entities, and to report same to the Secretariat of the Nigeria Sanctions Committee.
