SEC Orders Immediate Asset Freeze for Six Terrorist Financiers and Three BDCs

The Securities and Exchange Commission (SEC) has directed all capital market operators to immediately freeze the funds, assets, and economic resources belonging to six individuals and three corporate entities identified as terrorist financiers by the Nigeria Sanctions Committee.

The directive, issued via a circular to Capital Market Regulated Entities (CMREs) on Friday, was enacted pursuant to the provisions of the Terrorism Prevention and Prohibition Act 2022.

The designated individuals placed on the sanctions list are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim. The three affected corporate entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change.

According to regulatory filings, Hammajam, Usman, and Abubakar were sanctioned for their involvement in terrorism financing and providing direct material or financial support to the Islamic State West Africa Province (ISWAP).

Chiroma, Muktar Adamu, and Ibrahim were cited for utilizing Bureau De Change (BDC) operations to move illicit funds and support ISWAP operational cells in Kogi State and Okene. The three designated BDCs were directly implicated in channeling financial resources through the same terror financing network.

Under the statutory framework, capital market operators are required to freeze all listed assets without prior notice to the designated targets. Regulated firms must submit full compliance reports detailing frozen holdings or attempted transactions to the Secretariat of the Nigeria Sanctions Committee, while filing Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU).

The SEC cautioned that the order takes immediate effect, warning that failure to comply constitutes a violation of the Investments and Securities Act and applicable Anti-Money Laundering and Counter-Financing of Terrorism regulations. Defaulting entities face strict regulatory penalties, including heavy financial fines, operational suspensions, or licence revocations.