SEC blacklists 6 individuals, 3 entities for financing terrorism

The Securities and Exchange Commission (SEC) has ordered capital market operators to freeze the assets of six individuals and three entities accused of financing terrorism. The directive, issued in a circular to all Capital Market Regulated Entities (CMREs) on Friday, follows designations by the Nigeria Sanctions Committee (NSC). These individuals and entities are alleged to have supported the Islamic State West Africa Province (ISWAP), a group designated as a terrorist organization by the government. The measures are enforced under the Terrorism Prevention and Prohibition Act 2022, which mandates financial institutions to act swiftly against sanctioned parties to prevent illicit funds from circulating through the formal financial system. Among the individuals named are Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim. The three entities listed are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change. According to the SEC, Hammajam was added to the sanctions list on June 18, 2026, for his role in terrorism financing and support for ISWAP. Usman was designated for providing material assistance to a designated terrorist organization through repeated financial transactions. Abubakar was listed for his involvement in terrorism financing and direct membership in ISWAP. Chiroma is accused of using Bureau De Change (BDC) operations and affiliated corporate entities to move funds tied to terrorist activities. Muktar Muhammad Adamu was listed on June 15, 2026, for facilitating financial network operations for the ISWAP Okene cell, while Ibrahim was designated for providing financial and material support to the ISWAP Kogi cell. The three BDCs were indicted for their alleged role in funneling funds linked to the ISWAP Okene financing network. The action comes amid heightened efforts by Nigerian authorities to disrupt the financial networks of insurgent groups operating in the North-East and North-Central regions. Bureau De Change operators have long been under scrutiny by both the SEC and the Central Bank of Nigeria for engaging in illegal foreign exchange dealings and enabling money laundering. Under the Terrorism Prevention and Prohibition Act 2022 and Nigeria’s broader sanctions framework, financial institutions and capital market operators are legally obligated to act quickly on sanctions lists issued by the NSC to block the flow of illicit funds through the formal financial system. In its directive, the SEC mandated CMREs to immediately identify and freeze all funds, assets, and economic resources associated with the designated individuals and entities without prior notice. Operators were instructed to submit detailed compliance reports, including information on frozen assets and any attempted transactions, to the Secretariat of the Nigeria Sanctions Committee. Additionally, the commission required all regulated firms to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit (NFIU) for further investigation. The SEC emphasized that all instances of name matches in financial transactions, whether occurring before or after the issuance of the sanctions list, must be reported as suspicious. Regulated entities were also directed to prohibit all business dealings with the sanctioned parties and to maintain ongoing monitoring of accounts linked to them. Failure to comply with these directives will result in serious consequences. The SEC warned that non-compliance constitutes a violation of the Investments and Securities Act 2025 and the SEC’s Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) rules. Penalties for violations include substantial financial fines, operational suspensions, or even the revocation of registration licenses. The SEC reiterated that all unusual or suspicious transactions must be promptly reported to the NFIU to ensure transparency and accountability within the financial sector.