CBN directs banks to freeze accounts of customers linked to terrorism financing
The Central Bank of Nigeria (CBN) has directed banks and other financial institutions to freeze accounts of customers accused of terrorism financing.
In a circular signed by Olubunmi Ayodele-Oni, the apex bank on Thursday said the directive followed recent designations by the Nigeria Sanctions Committee and the US Treasury Department’s Office of Foreign Assets Control.
The US had recently listed three individuals and six entities allegedly linked to Islamic State (ISIS) financing, including three Nigerian bureau de change (BDC) operators.
The Nigerian BDCs are said to be situated in Lagos and Kano.
Commenting on the development, the CBN asked all financial institutions to “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”.
The apex bank directed financial institutions to screen existing customers, beneficial owners and transactions against the updated sanctions list.
The CBN also ordered banks to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to the designated persons and entities.
‘FILE TRANSACTION REPORTS, SUBMIT WITHIN 48 HOURS’
The regulator asked financial institutions to file suspicious transaction reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches.
Banks are also required to “submit reports to the CBN within 48 hours, detailing the status of any matches, affected accounts, amounts frozen and actions taken”.
“Nil returns are mandatory where no matches are identified,” the apex bank said.
The CBN further instructed financial institutions to intensify monitoring for terrorism financing indicators, including rapid movement of funds, the use of money service businesses and transactions involving high-risk jurisdictions.
The regulator warned that institutions that fail to comply with its directive risk sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.
The apex bank also said it would conduct off-site reviews, on-site examinations and supervisory engagements to verify compliance with the sanctions measures.
