CBN Orders Immediate Freeze of Accounts Linked to Terrorism Financing
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to immediately freeze the accounts and assets of individuals and companies designated for terrorism and terrorism financing, following fresh sanctions imposed by Nigerian and United States authorities.
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department to all banks, Payment Service Banks, and other financial institutions regulated under the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the apex bank, the directive follows recent sanctions designations by the Nigeria Sanctions Committee and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended, targeting individuals and entities linked to terrorism and terrorism financing.
The CBN stated that the Nigeria Sanctions List was updated on June 18, 2026, and noted that the designations constitute binding sanctions measures that must be implemented immediately by all regulated institutions.
The individuals listed under the sanctions regime are Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.
The regulator also identified four Bureau de Change operators allegedly owned or controlled by the designated individuals. They include Generation Currency Bureau de Change Limited, Manhattan Bureau de Change Limited, Nine to Nine Exchange Bureau de Change Limited, and Abbal Bako & Sons Bureau de Change Limited.
As part of the compliance measures, financial institutions have been directed to screen all existing customers, beneficial owners, and incoming and outgoing transactions against the updated sanctions lists, including known aliases and identifying information.
The CBN further instructed banks to immediately freeze, without prior notice, all funds, assets, and economic resources belonging to or controlled directly or indirectly by the designated individuals and entities.
“Identify and immediately 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, including those owned 50 per cent or more, individually or collectively,” the circular stated.
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The apex bank also directed financial institutions to ensure that no funds, financial services, or economic resources are made available, either directly or indirectly, to any of the sanctioned persons or entities.
Banks were instructed to file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches involving the designated parties.
In addition, all regulated institutions are required to submit compliance reports to the CBN within 48 hours, detailing any identified matches, affected accounts, amounts frozen or restricted, and actions taken. Institutions with no matching accounts are also required to file mandatory nil returns.
The regulator further directed banks to intensify monitoring for indicators of terrorism financing, including the structuring and rapid movement of funds, the use of money service businesses, bureaux de change and informal transfer channels, as well as transactions involving high-risk jurisdictions.
Financial institutions were also instructed to conduct retrospective reviews to identify previous or attempted transactions and customer relationships linked to the designated individuals and entities.
Warning against non-compliance, the CBN stressed that all reports must be accurate, complete, and verifiable, noting that the submission of false or misleading information would attract regulatory sanctions under BOFIA 2020 and other applicable laws.
“Any false or misleading information shall constitute a regulatory violation and will attract sanctions under BOFIA 2020 and other applicable laws,” the circular warned.
The CBN added that it would undertake off-site reviews, on-site examinations, and supervisory engagements to verify compliance, emphasizing that the directive takes immediate effect.
The latest directive comes amid intensified efforts to combat terrorism financing. Recently, the United States designated a Nigerian national and three Nigeria-based companies as alleged financial facilitators of activities linked to the Islamic State of Iraq and Syria (ISIS).
The sanctions formed part of a broader action targeting three individuals and six entities accused of facilitating the movement of funds for ISIS operations globally.
Meanwhile, the Association of Bureaux De Change Operators of Nigeria (ABCON) has expressed support for both domestic and international efforts aimed at curbing terrorism financing and protecting the integrity of Nigeria’s financial system.
By PRNigeria
