CBN directs banks to freeze accounts of customers linked to terrorism
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to freeze accounts of customers accused of terrorism financing. CBN in a circular signed by Olubunmi Ayodele-Oni, the apex bank on Thursday said the directive followed recent designations by the Nigeria Sanctions Committee and the US Treasury Department’s Office of Foreign Assets […]
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to freeze accounts of customers accused of terrorism financing.
CBN in a circular signed by Olubunmi Ayodele-Oni, the apex bank on Thursday said the directive followed recent designations by the Nigeria Sanctions Committee and the US Treasury Department’s Office of Foreign Assets Control.
Daily Trust reports that the US had recently listed three individuals and six entities allegedly linked to Islamic State (ISIS) financing, including three Nigerian bureau de change (BDC) operators.
US State Department spokesperson Tommy Pigott in a statement said a Nigerian, MUHAMMAD, Mukhtar Adamu (a.k.a. ADAMU, Mukhtar; MUKHTAR, Muhammad), was among three individuals and six entities sanctioned for allegedly facilitating ISIS financing across Europe, the Middle East and West Africa.
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The Nigerian entities included in the list are GENERATION CURRENCY BUREAU DE CHANGE LIMITED; Lagos, Nigeria; RC 1555604; [SDGT] (Linked To: Mukhtar Adamu / ISIS network); MANHATTAN BUREAU DE CHANGE LIMITED; No. 59 Murtala Mohammed Way, Wapa, Kano, Nigeria; RC 1763824; [SDGT] (Linked To: Mukhtar Adamu / ISIS network) and NINE TO NINE EXCHANGE BUREAU DE CHANGE LIMITED; Ikeja, Lagos State, Nigeria; RC 1462752; [SDGT] (Linked To: Mukhtar Adamu / ISIS network).
The Nigerian BDCs are said to be situated in Lagos and Kano.
Reacting to the development, the CBN asked all financial institutions to “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”.
The apex bank directed financial institutions to screen existing customers, beneficial owners and transactions against the updated sanctions list.
The CBN also ordered banks to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to the designated persons and entities.
The regulator asked financial institutions to file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches.
Banks are also required to “submit reports to the CBN within 48 hours, detailing the status of any matches, affected accounts, amounts frozen and actions taken”.
The CBN further instructed financial institutions to intensify monitoring for terrorism financing indicators, including rapid movement of funds, the use of money service businesses and transactions involving high-risk jurisdictions.
CBN warned that institutions that fail to comply with its directive risk sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
The apex bank also said it would conduct off-site reviews, on-site examinations and supervisory engagements to verify compliance with the sanctions measures.