Banks on red alert as CBN list Nigerians linked to terrorism financing sanctions

Banks across Nigeria have been placed on high alert after the Central Bank of Nigeria (CBN) directed financial institutions to immediately freeze the accounts and assets of six Nigerians and four Bureau De Change (BDC) operators linked to terrorism financing sanctions.

The directive followed the inclusion of the individuals and businesses on terrorism sanctions lists maintained by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC).

According to a circular issued by the apex bank, all banks, microfinance institutions, payment service providers, and other regulated financial institutions have been instructed to identify and freeze any funds, assets, or economic resources belonging to the affected persons and entities without prior notice.

The individuals named in the sanctions list include Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, and Yakubu Ogirima Ibrahim.

Also affected are four Nigeria-based Bureau De Change operators: 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.

The CBN warned that financial institutions must immediately screen their customer databases and monitor all transactions to ensure compliance with the sanctions directive. Banks are also required to submit reports on actions taken within 48 hours and file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit (NFIU) where necessary.

The development comes amid heightened scrutiny of terrorism financing networks operating within and outside Nigeria. Authorities believe the sanctions are part of broader efforts to disrupt financial channels allegedly used to support terrorist activities across the region.

The apex bank further directed financial institutions to strengthen monitoring mechanisms, conduct look-back reviews of previous transactions involving the designated individuals and entities, and report any attempted dealings linked to the sanctions list.

Regulators warned that failure to comply with the directive could attract severe penalties under existing banking and anti-money laundering laws.

The latest move signals a major escalation in Nigeria’s fight against terrorism financing, with banks now expected to play a central role in identifying and blocking suspicious financial flows connected to sanctioned persons and organisations.