CBN Orders Banks to Freeze Accounts Linked to Terrorism Financing With Immediate Effect
The Central Bank of Nigeria (CBN) has directed banks, payment service banks and other financial institutions to immediately freeze the accounts and assets of individuals and companies designated for terrorism and terrorism financing.
The directive was contained in a circular dated June 24, 2026, issued by the apex bank’s Compliance Department to all institutions regulated under the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the CBN, the action follows recent sanctions imposed 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, which targets terrorism and terrorism-financing activities.
“The Nigeria Sanctions List has been updated as of June 18, 2026. These designations constitute binding sanctions measures requiring immediate implementation by all regulated entities,” the circular stated.
The apex bank identified six individuals placed on the sanctions list as Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma and Yakubu Ogirima Ibrahim.
It also listed four Bureau de Change operators allegedly owned or controlled by the designated individuals. They 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.
The CBN directed all financial institutions to immediately screen existing customers, beneficial owners and all incoming and outgoing transactions against the updated sanctions list, including known aliases and other identifying information.
Banks were further ordered to freeze, without prior notice, all funds, assets and economic resources belonging to, owned, held or controlled directly or indirectly by the sanctioned individuals and entities.
The circular stated that the directive also covers assets owned 50 per cent or more, either individually or collectively, by the designated persons.
In addition, financial institutions were instructed to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to any of the sanctioned individuals or entities.
The regulator also directed banks to immediately file Suspicious Transaction Reports with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches involving the designated persons or organisations.
As part of the compliance requirements, financial institutions are expected to submit reports to the CBN within 48 hours, detailing any identified matches, affected accounts, amounts frozen or restricted and actions taken. Institutions with no matching accounts were also directed to file mandatory nil returns.
The apex bank further instructed banks and other financial institutions to strengthen monitoring systems for terrorism-financing indicators, including suspicious fund transfers, structured transactions, rapid movement of funds, the use of money service businesses and bureaux de change, as well as transactions linked to high-risk jurisdictions.
The CBN also ordered retrospective reviews of previous transactions and customer relationships that may have links to the designated individuals and entities.
Warning against non-compliance, the regulator stressed that all reports submitted must be accurate, complete and verifiable, noting that false or misleading information would attract sanctions under BOFIA 2020 and other applicable laws.
The circular added that the CBN would undertake off-site reviews, on-site examinations and supervisory engagements to ensure full compliance with the directive, which takes immediate effect.
The latest directive follows recent actions by the United States government, which designated a Nigerian national and three companies operating in Nigeria as alleged financial facilitators for the Islamic State of Iraq and Syria (ISIS).
The sanctions formed part of a broader enforcement action targeting three individuals and six entities accused of facilitating the movement of funds for ISIS operations across different parts of the world.
Meanwhile, the Association of Bureaux De Change Operators of Nigeria (ABCON) has expressed support for both domestic and international efforts aimed at combating terrorism financing and protecting the integrity of Nigeria’s financial system.