Nigeria’s Securities and Exchange Commission (SEC) has ordered all Capital Market Regulated Entities (CMREs) to immediately subscribe to the Nigeria Sanctions (NigSac) Alerts system to freeze terrorist-linked assets in real time.
According to three regulatory circulars issued by the SEC, failure to comply with the directive will result in severe financial fines, operational suspensions, or the outright revocation of operating licenses.
The directive targets fund managers, broker-dealers, issuing houses, and custodians operating across Africa’s largest economy.
The order follows local and international sanction designations targeting individuals and Bureau de Change operators for providing material support to the Islamic State West Africa Province (ISWAP).
Under the mandatory protocol, market operators must instantly screen client databases against updated national watchlists and United Nations Security Council Resolutions.
Entities registered on the Nigerian Financial Intelligence Unit’s goAML portal are automatically integrated into the sanctions database, avoiding duplicate registration requirements.
Upon identifying a positive match, regulated firms are legally mandated to freeze target funds immediately without prior notice to affected account holders.
The crackdown reinforces compliance with the Financial Action Task Force (FATF) standards, as Nigeria works to exit global high-risk regulatory monitoring.
“Firms are encouraged to clearly communicate these policies and actively train employees to recognize and address sanctions compliance obligations,” NigSac stated in an official compliance statement.
The SEC noted that its joint implementation with the Nigeria Sanctions Committee remains “instrumental in the timely identification, asset freezing, and prevention of prohibited transactions across capital markets.”
