The Central Bank of Nigeria has directed banks and other financial institutions to immediately freeze the accounts and assets of individuals and companies designated for terrorism and terrorism financing following fresh sanctions issued by Nigerian and United States authorities.
- +CBN orders banks to freeze six terror suspects’ accounts
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and addressed to all banks, Payment Service Banks, and other financial institutions regulated under the Banks and Other Financial Institutions Act 2020.
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and addressed to all banks, Payment Service Banks, and other financial institutions regulated under the Banks and Other Financial Institutions Act 2020.
According to the circular, the action follows recent sanctions designations by the Nigeria Sanctions Committee and the United States Department of the Treasury’s Office of Foreign Assets Control under Executive Order 13224, as amended, on terrorism and terrorism financing.
“The Nigeria Sanctions List has been updated as of June 18, 2026. These designations constitute binding sanctions measures requiring immediate implementation by all regulated entities,” the apex bank said.
The CBN listed six individuals designated under the sanctions regime as Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.
It also named four Nigeria-based Bureau de Change operators designated as being owned or controlled by the individuals. They are Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited, and Abbal Bako & Sons Bureau de Change Limited.
As part of the compliance measures, the apex bank directed all financial institutions to immediately screen existing customers, beneficial owners, and all incoming and outgoing transactions against the updated sanctions lists, including known aliases and identifiers.
It also ordered banks to freeze, without prior notice, all funds, assets, and other economic resources belonging to or controlled, directly or indirectly, by the designated persons and entities.
The circular stated, “Identify and immediately freeze, without prior notice, all funds, assets, and other economic resources belonging to, owned, held, or controlled (directly or indirectly) by the designated persons and entities, including those owned 50 per cent or more, individually or collectively.”
The CBN further directed financial institutions to ensure that no funds, financial services, or economic resources are made available, directly or indirectly, to the sanctioned persons or entities.
It instructed banks to immediately file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit for any confirmed or attempted matches.
The regulator also directed all financial institutions to submit compliance reports to the CBN within 48 hours of the circular, stating whether any matches were identified, the accounts affected, amounts frozen or restricted, and actions taken.
It added that institutions with no matching accounts must also submit mandatory nil returns.
The circular also directed banks to intensify monitoring for terrorism-financing indicators, including the structuring and rapid movement of funds, the use of money service businesses, bureaux de change, and informal channels, as well as transactions involving high-risk jurisdictions.
It further ordered financial institutions to conduct retrospective reviews to identify previous or attempted transactions and customer relationships linked to the designated parties.
Warning against non-compliance, the CBN said all submissions must be accurate, complete and verifiable, noting that false or misleading information would constitute a regulatory violation.
“Any false or misleading information shall constitute a regulatory violation and will attract sanctions under BOFIA 2020 and other applicable laws,” the circular stated.
It added that the CBN would conduct off-site reviews, on-site examinations and supervisory engagements to verify compliance, stressing that the directive “takes immediate effect.”
The United States recently designated a Nigerian national and three companies operating in the country as alleged financial facilitators of activities linked to the terrorist group, the Islamic State of Iraq and Syria.
They were designated in the latest action, which targeted a total of three individuals and six entities accused of facilitating the movement of funds for ISIS operations globally.
The PUNCH earlier reported that the Association of Bureaux De Change Operators of Nigeria strongly condemned terrorism financing, declaring its full support for recent domestic and international enforcement efforts aimed at safeguarding the integrity of Nigeria’s financial system.
