A financial watchdog has cut off access to funds for 13 alleged terrorism-linked entities, exposing how corporate accounts can channel illicit flows before detection.

Capital Market Operators across Nigeria must now freeze all assets tied to 13 newly blacklisted entities linked to terrorism financing, cutting off financial channels before further harm occurs. The Securities and Exchange Commission (SEC) issued a binding directive requiring immediate identification and freezing of funds, without prior notice, for 10 individuals and three entities added to the Nigeria Sanctions List. These individuals were convicted in April 2019 by the Abu Dhabi Federal Court of Appeal for collecting money in Dubai and transferring it to Nigeria to support Boko Haram operations, with sentences ranging from 10 years to life. The SEC’s authority stems from section 49 of the Terrorism (Prevention and Prohibition) Act, 2022, which mandates asset freezes on designated persons and organizations. All CMOs and Designated Non-Financial Businesses and Professions (DNFBPs) must report frozen assets and blocked transactions to the Nigeria Sanctions Committee Secretariat. Institutions that fail to comply face civil and criminal penalties, along with severe reputational consequences. The SEC emphasized that the mechanism is preventive, not punitive, designed to disrupt the use of corporate vehicles in moving illicit funds through the financial system. Non-compliance carries civil and criminal liabilities, as well as reputational damage for institutions.