SEC orders operators to freeze ISIS-linked accounts

Nigeria's Securities and Exchange Commission (SEC) has mandated capital market operators to immediately freeze all funds and assets belonging to a Nigerian individual and three companies designated by the United States for alleged facilitation of financial transactions connected to the Islamic State of Iraq and Syria (ISIS) and ISIS-West Africa.

The directive, detailed in a circular titled 'Notice of Sanction,' requires all Capital Market Regulated Entities (CMREs) to act without prior notice. These entities must identify and freeze the assets of Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar, and the companies Generation Currency Bureau De Change Limited, Manhattan Bureau De Change Limited, and Nine to Nine Exchange Bureau De Change Limited. Following the freeze, operators must report their actions to the Secretariat of the Nigeria Sanctions Committee.

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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

Beyond asset freezes, the SEC has instructed operators to file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of financial activities linked to the sanctioned parties. This includes reporting any name matches in financial transactions, regardless of when they occurred. CMREs are also directed to prohibit future dealings with the designated individual and entities and to continuously monitor related transactions, reporting findings to the Nigeria Sanctions Committee via a specified email address.

Failure to comply with the SEC's directive will be considered a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations. Regulated entities face potential regulatory sanctions, including fines, operational suspension, or registration revocation. This action highlights a heightened regulatory focus on preventing Nigeria's financial and capital markets from being exploited for terrorism financing and other illicit financial activities.

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Beyond the asset freeze, the SEC directed capital market operators to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities linked to the designated individual and companies.