Central Bank of Nigeria Orders Freeze on Accounts Linked to Terrorism Financing

Directive Issued to Financial Institutions

The Central Bank of Nigeria (CBN) has issued a formal directive to all deposit money banks and other financial institutions in the country to immediately freeze the accounts and assets of specific individuals and entities. This action is a direct response to findings linking these parties to terrorism financing.

Entities Targeted

The regulatory order specifically targets a total of ten entities identified as being involved in activities that threaten national security. The list of those affected includes:

• Six individuals identified by security agencies for their roles in facilitating financial support for terrorist organizations.
• Four Bureau De Change (BDC) operators accused of serving as conduits for illicit funds.

The CBN's directive requires financial institutions to conduct a comprehensive search of their databases to identify any accounts associated with the designated names and to place an immediate 'post-no-debit' restriction on them.

Context of the Crackdown

This move is part of the Nigerian government's broader strategy to dismantle the financial networks that sustain insurgent groups operating within the country. By targeting Bureau De Change operators, the authorities are focusing on the informal financial sector, which has been identified as a potential vulnerability for money laundering and the movement of funds to non-state actors. A spokesperson for the regulatory body noted that the measure is 'a necessary step to safeguard the integrity of the Nigerian financial system and ensure compliance with international anti-money laundering and counter-terrorism financing standards.'

Next Steps

Financial institutions are required to report any findings to the relevant security and intelligence agencies for further investigation. The freeze is expected to remain in place while authorities continue their inquiries into the financial activities of the designated individuals and operators. The Central Bank of Nigeria continues to monitor the financial landscape to prevent further exploitation of the banking sector for criminal purposes.