The Securities and Exchange Commission (SEC) has directed operators in Nigeria’s capital market to immediately identify and freeze funds, assets and other economic resources connected to a Nigerian citizen and three companies recently sanctioned by the United States Government over alleged financial dealings linked 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.
In the circular, the SEC instructed all Capital Market Regulated Entities (CMREs) to freeze the assets of the affected individual and companies without prior notice and report the action to the Secretariat of the Nigeria Sanctions Committee.
The Nigerian named in the sanctions notice is Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar.
The three companies listed are Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited, and Nine to Nine Exchange Bureau De Change Limited.
The commission directed regulated operators to act immediately once they identify any funds or assets belonging to the sanctioned individual or entities.
According to the SEC, CMREs must:
“immediately identify and freeze, without prior notice, all funds, assets, and any other economic resources belonging to the designated individual and entities in their possession.”
The commission added that operators must report the freezing action to the Nigeria Sanctions Committee and provide details of all assets affected and the measures taken to comply with the directive.
The SEC also instructed operators to report any attempted transactions involving the sanctioned individual or companies.
According to the commission, the measures are intended to prevent Nigeria’s financial system from being used to facilitate prohibited financial activities.
Suspicious Transactions To Be Reported
Beyond the freezing order, the SEC directed capital market operators to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for further analysis.
Operators were further instructed to notify the NFIU whenever the names of the sanctioned individual or companies matched names appearing in financial transactions.
The directive applies regardless of whether the transaction occurred before or after the operators received the sanctions notice.
The commission also ordered regulated entities to prohibit any future dealings with the sanctioned individual and companies and to continue monitoring transactions that may be connected to them.
Any findings are to be reported to the Nigeria Sanctions Committee through info@nigsac.gov.ng.
SEC Warns Against Non-Compliance
The SEC said the directive took immediate effect and warned that failure to comply would amount to a breach of the Investments and Securities Act, 2025, as well as the commission’s Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations.
The commission warned that operators who fail to comply could face serious regulatory consequences, including fines, suspension of operations, or revocation of their registration.
The latest directive follows recent sanctions imposed by the United States Government targeting individuals and entities allegedly involved in financial transactions connected to ISIS and ISIS-West Africa, and forms part of broader efforts by Nigerian regulators to strengthen compliance with international anti-money laundering and counter-terrorism financing standards.
