The Central Bank of Nigeria has directed banks and other financial institutions to immediately freeze accounts of customers suspected of terrorism financing.
In a circular signed by Director Olubunmi Ayodele-Oni on Thursday, the CBN said the directive followed new designations by the Nigeria Sanctions Committee and the US Treasury’s Office of Foreign Assets Control OFAC.
The US recently listed three individuals and six entities allegedly tied to ISIS financing, including 3 Nigerian bureau de change operators based in Lagos and Kano.
Reacting, the apex bank asked all financial institutions to instantly 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.
It directed financial institutions to screen existing customers, beneficial owners and transactions against the updated sanctions list.
It 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 urged financial institutions to file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches.
It added:”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.Nil returns are mandatory where no matches are identified.”
It advised 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.
It 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.
