CBN orders banks to freeze accounts linked to terrorism financing
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to immediately freeze the accounts of customers and entities linked to terrorism financing.
The directive, contained in a circular signed by Olubunmi Ayodele-Oni on Thursday, followed recent sanctions imposed by the Nigeria Sanctions Committee and the United States Treasury Department’s Office of Foreign Assets Control (OFAC).
The US recently designated three individuals and six entities allegedly involved in financing the Islamic State (ISIS), including three Nigerian Bureau de Change (BDC) operators based in Lagos and Kano.
According to the CBN, all financial institutions must immediately freeze, without prior notice, any funds, assets and economic resources owned, controlled or held directly or indirectly by the designated individuals and entities.
The apex bank also instructed financial institutions to screen existing customers, beneficial owners and transactions against the updated sanctions list and ensure that no funds, financial services or economic resources are made available to the affected persons or organisations.
The regulator further directed banks to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches.
Financial institutions are required to submit reports to the CBN within 48 hours, detailing affected accounts, frozen amounts and actions taken. The bank added that institutions must also file nil returns where no matches are found.
The CBN urged banks to strengthen monitoring of terrorism financing activities, particularly rapid movement of funds, transactions involving high-risk jurisdictions and the use of money service businesses.
It warned that non-compliance with the directive could attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
The apex bank added that it would carry out off-site reviews, on-site examinations and supervisory engagements to ensure compliance with the sanctions measures.
