The Central Bank of Nigeria (CBN) has directed banks, payment service banks and other financial institutions to immediately implement sanctions against individuals and businesses designated under terrorism financing measures….
The Central Bank of Nigeria (CBN) has directed banks, payment service banks and other financial institutions to immediately implement sanctions against individuals and businesses designated under terrorism financing measures.
The directive follows sanctions issued by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) .
Here are key things to know about the CBN’s latest directive:
1. Six individuals have been placed on the sanctions list
The CBN disclosed that six individuals have been designated and included on the Specially Designated Nationals and Blocked Persons List.
They are:
- Muktar Muhammad Adamu
- Babangida Muhammed Adamu Hammajam
- Abdullahi Umar Usman
- Ibrahim Abubakar
- Adamu Chiroma
- Yakubu Ogirima Ibrahim
....: CBN Directs Banks to Freeze Accounts of Customers Linked to Terrorism Financing
2. Four bureaux de change have also been designated
The apex bank said four Nigeria-based Money Service Businesses and Bureaux de Change have been identified as being owned or controlled by the designated individuals.
The affected firms are:
- Generation Currency Bureau de Change Limited
- Manhattan Bureau de Change Limited
- Nine to Nine Exchange Bureau de Change Limited
- Abbal Bako & Sons Bureau de Change Limited
3. Banks must immediately screen customers and transactions
Financial institutions have been directed to conduct immediate screening of:
- Existing customers and accounts
- Beneficial owners
- Incoming and outgoing transactions
The screening must be carried out against the updated sanctions list, including known aliases and identifiers.
4. Accounts and assets linked to designated persons must be frozen
The CBN ordered banks to identify and immediately freeze, without prior notice, all funds, assets and economic resources belonging to or controlled by the designated persons and entities.
The directive also covers businesses and entities owned 50 per cent or more, either individually or collectively, by sanctioned persons.
5. Financial institutions must stop all dealings with designated persons
Under the directive, banks and other regulated entities are prohibited from making funds, financial services or economic resources available to the designated individuals and companies.
The restriction applies both directly and indirectly.
6. Suspicious transactions must be reported immediately
The CBN instructed financial institutions to file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit for any confirmed or attempted matches involving the sanctioned individuals or entities.
7. Banks have 48 hours to report to the CBN
Financial institutions are required to submit compliance reports to the CBN within 48 hours.
The reports must include:
- Match status (positive or negative)
- Details of affected accounts
- Amounts frozen or restricted
- Actions taken
The apex bank also stated that nil returns are mandatory where no matches are identified.
8. Monitoring for terrorism financing must be intensified
The CBN directed banks to strengthen surveillance for indicators of terrorism financing, including:
Structuring and rapid movement of funds
Use of Money Service Businesses, Bureaux de Change and informal channels
Transactions involving high-risk jurisdictions
9. Banks must review past transactions
The directive also requires financial institutions to conduct a comprehensive retrospective review of previous and attempted transactions or relationships linked to the designated individuals and entities.
The review is intended to uncover any historical connections that may have been missed before the sanctions were imposed.
10. The directive takes immediate effect
The CBN said compliance with the sanctions measures is mandatory and effective immediately.
The regulator warned that it would conduct off-site reviews, on-site examinations and supervisory engagements to verify compliance, adding that false or misleading submissions could attract sanctions under the Banks and Other Financial Institutions Act 2020 and other applicable laws.
