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 under terrorism and terrorism financing sanctions by Nigerian and United States authorities.
The directive was contained in a circular dated June 24, 2026, issued by the CBN’s Compliance Department and addressed to all Deposit Money 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 made 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, relating to terrorism and terrorism financing activities.
“The Nigeria Sanctions List has been updated as at June 18, 2026. These designations constitute binding sanctions measures requiring immediate implementation by all regulated entities,” the CBN stated.
The apex bank listed six individuals affected by the sanctions as Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma and Yakubu Ogirima Ibrahim.
It also identified four Nigeria-based Bureau de Change operators designated as being owned or controlled by the listed individuals.
The companies are 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 requirements, the CBN directed all financial institutions to immediately screen existing customers, beneficial owners and all incoming and outgoing transactions against the updated sanctions lists, including known aliases and identifying information.
The regulator further ordered banks and financial institutions to freeze all funds, assets and economic resources belonging to or controlled by the designated individuals and entities without prior notice.
“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.
The apex bank also directed institutions to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to the sanctioned individuals or entities.
Financial institutions were instructed to immediately file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) whenever confirmed or attempted matches are identified.
In addition, banks are required to submit detailed compliance reports to the CBN within 48 hours, indicating whether any matches were found, the accounts affected, amounts frozen or restricted and actions taken in response.
The regulator stressed that institutions with no matching accounts or transactions must also file mandatory nil returns.
The CBN further instructed banks to strengthen monitoring for terrorism financing indicators, including suspicious fund movements, transaction structuring, the use of money service businesses and bureaux de change, informal financial channels and transactions involving high-risk jurisdictions.
The circular also directed financial institutions to carry out retrospective reviews of customer relationships and previous transactions in order to identify any links to the designated persons and entities.
The apex bank warned that failure to comply with the directive would attract regulatory sanctions under BOFIA 2020 and other applicable laws.
“All submissions must be accurate, complete and verifiable. Any false or misleading information shall constitute a regulatory violation and will attract sanctions under BOFIA 2020 and other applicable laws,” the CBN stated.
It added that compliance would be monitored through off-site reviews, on-site examinations and supervisory engagements to ensure strict implementation of the directive, which takes immediate effect.
The latest directive comes after the United States recently designated a Nigerian national and three companies operating in Nigeria 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 financial flows for ISIS operations across different parts of the world.
Meanwhile, the Association of Bureaux De Change Operators of Nigeria (ABCON) has reiterated its condemnation of terrorism financing and expressed support for both domestic and international efforts aimed at protecting the integrity of Nigeria’s financial system.
The association stated that operators within the sector remain committed to complying with anti-money laundering and counter-terrorism financing regulations while cooperating with relevant authorities to prevent the misuse of financial channels for criminal activities.
