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SEC Orders Immediate Freeze of Assets Linked to US-Sanctioned Nigerian, 3 Firms
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 linked to a Nigerian citizen and three companies recently sanctioned by the United States Government over alleged financial activities connected 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 by the commission.
The SEC ordered all Capital Market Regulated Entities (CMREs) to freeze the assets of the designated individual and companies without prior notice and report the action to the Secretariat of the Nigeria Sanctions Committee.
The individual named in the sanctions notice is Mukhtar Adamu Muhammad, also known as Mukhtar Adamu and Muhammad Mukhtar.
The three companies 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 entities to immediately identify and freeze all funds, assets and other economic resources belonging to the sanctioned individual and companies in their possession.
Operators are also required to report all assets frozen, measures taken in compliance with the designation and any attempted transactions involving the affected individual or entities.
In addition, the SEC instructed capital market operators to file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of financial activities linked to the designated parties.
The commission further directed operators to report to the NFIU any cases of name matching in financial transactions, regardless of whether the transactions occurred before or after the sanctions list was received.
The SEC also ordered CMREs to prohibit further dealings with the sanctioned individual and companies and maintain continuous monitoring of transactions involving them.
The commission said findings from such monitoring must be reported to the Nigeria Sanctions Committee.
The directive takes immediate effect, with the SEC warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, as well as the SEC’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
According to the commission, non-compliant operators could face regulatory sanctions, including fines, suspension of operations or revocation of registration.
Vanguard reports that the move highlights the growing scrutiny of Nigeria’s financial system as regulators intensify efforts to prevent the country’s capital and financial markets from being exploited for terrorism financing and other illicit financial activities.