CBN Orders Immediate Freeze on Terror Financing Accounts

The Central Bank of Nigeria (CBN) issued a directive on June 24, 2026, mandating banks and financial institutions to freeze accounts associated with individuals and companies suspected of financing terrorism. This action follows recent sanctions imposed by the U.S.

Department of the Treasury, specifically targeting individuals and entities linked to the Islamic State in Iraq and Syria (ISIS). The CBN identified six individuals, including Muktar Muhammad and Adamu Babangida, as part of the sanctions regime.

Financial institutions are required to screen existing accounts against the updated sanctions list and freeze assets without prior notice if they belong to designated persons or entities. Additionally, banks must file suspicious transaction reports with the Nigerian Financial Intelligence Unit within 48 hours of identifying affected accounts.

The CBN emphasized the importance of compliance and warned that failure to adhere to these regulations could result in sanctions under the Banks and Other Financial Institutions Act of 2020.