The Central Bank of Nigeria, CBN, has directed all banks and other financial institutions in the country to immediately freeze the accounts and assets of individuals and entities designated for involvement in terrorism financing, as part of ongoing efforts to strengthen Nigeria’s anti-money laundering and counter-terrorism financing framework.
The directive followed fresh sanctions and designations issued by relevant authorities, requiring financial institutions to identify and block access to funds, assets and other economic resources linked to the affected persons and organisations without delay.
In a circular addressed to banks, payment service providers and other regulated institutions, the apex bank instructed operators within the financial sector to ensure strict compliance with the sanctions regime by immediately locating and freezing all accounts associated with the designated individuals and entities.
The CBN said the action was in line with Nigeria’s obligations under international conventions, resolutions of the United Nations Security Council, and provisions of the Terrorism (Prevention and Prohibition) Act aimed at preventing the financing of terrorism and related criminal activities.
According to the directive, financial institutions are expected to report any matches found during their screening processes and submit details of frozen assets to the appropriate authorities. The institutions were also advised to maintain heightened vigilance and continuously monitor customer transactions to detect suspicious activities that may be linked to terrorism financing.
The apex bank stressed that compliance with the sanctions measures is mandatory and warned that any institution found violating the directive could face regulatory sanctions.
The move is part of broader efforts by Nigerian authorities to curb the flow of funds to terrorist groups and criminal networks operating within and outside the country. Security experts have long identified the disruption of financial channels as a critical strategy in weakening the operational capabilities of extremist groups.
The latest directive comes amid increased scrutiny of financial transactions across the banking sector as regulators seek to strengthen safeguards against money laundering, terrorism financing and other illicit financial flows.
Analysts say the measure is expected to reinforce confidence in Nigeria’s financial system and demonstrate the country’s commitment to global standards on combating terrorism financing.
Financial institutions have been urged to act swiftly to ensure full implementation of the directive and cooperate with law enforcement and regulatory agencies in tracking and preventing the movement of funds linked to designated persons and organisations.
