The Central Bank of Nigeria (CBN) has ordered commercial banks and all other financial institutions to immediately freeze accounts belonging to individuals and bureaux de change operators accused of channeling funds to terrorist organizations, according to a circular issued Thursday.
The directive, signed by Olubunmi Ayodele-Oni on behalf of the apex bank, targets six individuals and four bureau de change (BDC) operators recently designated by the Nigeria Sanctions Committee and the US Treasury Department’s Office of Foreign Assets Control (OFAC) for alleged links to the Islamic State, also known as ISIS.
Three of the affected BDC operators are Nigerian firms based in Lagos and Kano, placing the country’s informal foreign exchange market under fresh regulatory scrutiny. The BDCs are; Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited and Abal Bako Sons Bureau de Change Limited.
The individuals include Mukhtar Mohammad Adamu, Babangida Mohammad Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Ciroma and Yakubu Ogirima Ibrahim.
The CBN instructed all regulated institutions to freeze, without prior notice, all funds and economic resources belonging to or controlled by the designated persons and entities — whether directly or indirectly. Banks are also required to screen existing customers, beneficial owners, and ongoing transactions against the updated sanctions list and ensure no financial services or resources are extended to named parties.
48-Hour Reporting Window
The regulator set a strict timeline for compliance. Financial institutions must file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches, and submit detailed reports to the CBN within 48 hours covering affected accounts, amounts frozen, and steps taken. Institutions that find no matches are still required to file nil returns.
The CBN also directed banks to heighten their surveillance for terrorism financing indicators, citing rapid movement of funds, the use of money service businesses, and transactions tied to high-risk jurisdictions as red flags warranting closer monitoring.
Institutions that fail to comply with the directive face sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws, the apex bank warned. The CBN added that it would conduct off-site reviews, on-site examinations, and supervisory engagements to verify adherence.
The action reflects a broader push by Nigerian authorities to align with international counter-terrorism financing standards, particularly as the country works to strengthen its standing with global bodies monitoring financial crime.
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