CBN Orders Banks to Freeze Accounts Linked to Terrorism

The Central Bank of Nigeria (CBN) issued a directive to financial institutions to freeze accounts of customers linked to terrorism financing. This action follows recent sanctions imposed by the U.S.

Department of the Treasury's Office of Foreign Assets Control, which targeted three Nigerians—Muhammad Mukhtar Adamu and K. Adamu Mukhtar—along with six entities for allegedly facilitating financing for the Islamic State (IS).

The sanctioned Nigerian entities include several Bureau de Change (BDC) operators in Lagos and Kano. The CBN instructed banks to immediately freeze funds and assets belonging to designated individuals and entities without prior notice.

Financial institutions are required to screen transactions against the updated sanctions list and report any suspicious activities to the Nigerian Financial Intelligence Unit (NFIU) within 48 hours. The CBN emphasized the need for heightened monitoring of terrorism financing indicators, including rapid fund movements and transactions involving high-risk jurisdictions, warning that non-compliance could lead to sanctions against the banks.