Terrorism financing: ABCON backs US sanctions, assures compliance

The Association of Bureaux De Change Operators of Nigeria (ABCON) has declared its strong support for recent domestic and international enforcement efforts against terrorism financing, vowing full compliance with US sanctions. The association's stance follows targeted actions by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) against individuals and entities allegedly involved in facilitating terrorist financing.

ABCON emphasized that these sanctions should not be misconstrued as a broad indictment of Nigeria's entire Bureau De Change sector. The association stated that the overwhelming majority of licensed operators conduct their business in strict adherence to existing regulations. "Sanctions are directed at specific individuals or entities based on intelligence and investigations and should not be interpreted as an indictment of the entire BDC industry," ABCON clarified in a statement.

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Sanctions are directed at specific individuals or entities based on intelligence and investigations and should not be interpreted as an indictment of the entire BDC industry.

To bolster its commitment to maintaining a clean foreign exchange market, ABCON has unveiled a comprehensive seven-point counter-measure strategy. This framework aims to curb illicit financial flows and eliminate loopholes within the sector, enforcing a zero-tolerance policy for illicit transactions and stricter compliance rules nationwide. Key actions include enhanced Know-Your-Customer (KYC) procedures, rigorous verification of customer identities and beneficial ownership, and routine screening against Nigerian, UN, and OFAC sanctions lists.

Furthermore, ABCON has mandated the immediate freezing of transactions where legally required and directed operators to promptly file Suspicious Transaction Reports (STRs) and Currency Transaction Reports (CTRs) to the Nigerian Financial Intelligence Unit (NFIU). The association is also investing in technology and compliance, including the deployment of automated Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) monitoring systems. ABCON pledged full cooperation with the Central Bank of Nigeria (CBN) during regulatory examinations and compliance workshops for staff, reinforcing its commitment to a safer financial space.

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ABCON remains committed to preserving the integrity, transparency, and credibility of Nigeria’s foreign exchange market. We support all lawful efforts to identify, investigate, and sanction any individual or institution involved in terrorism financing. The association will continue to work closely with the CBN, NFIU, security agencies, and international partners to strengthen compliance and ensure that the Bureau De Change sector is not used as a channel for illicit financial activities.