*Banks directed to conduct look-back review of suspicious transactions

The Central Bank of Nigeria has directed banks, payment service banks and other financial institutions to freeze accounts and assets linked to six individuals and four bureaux de change (BDC) designated under terrorism sanctions.

The CBN, in a circular dated June 24, said the directive followed sanctions designations by the Nigeria Sanctions Committee and the United States Office of Foreign Assets Control under Executive Order 13224, as amended.

The circular, signed by Olubunmi Ayodele-Oni, Director of the Compliance Department, took immediate effect.

The apex bank said the Nigeria Sanctions List was updated on June 18 with the designations binding on all regulated entities.

The six individuals named in the circular are Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma and Yakubu Ogirima Ibrahim.

The CBN also named four Nigeria-based money service businesses and BDCs as entities owned or controlled by the designated persons.

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.

Under the directive, financial institutions are to immediately screen existing customers, accounts, beneficial owners and all incoming and outgoing transactions against the updated sanctions lists, including aliases and other identifiers.

They are also required to freeze, without prior notice, all funds, assets and economic resources belonging to, owned, held or controlled directly or indirectly by the designated persons and entities.

The order covers assets owned 50 per cent or more, individually or collectively, by the sanctioned entities.

The circular barred banks and other regulated institutions from making funds, financial services or economic resources available, directly or indirectly, to or for the benefit of the listed persons and entities.

The CBN directed financial institutions to file suspicious transaction reports immediately with the Nigerian Financial Intelligence Unit (NFIU) in case of any confirmed or attempted matches.

The financial institutions are also expected to submit reports to the CBN within 48 hours, stating match status, details of affected accounts, amounts frozen or restricted and actions taken.

Nil returns are required where no matches are found.

The apex bank also ordered enhanced monitoring for terrorism financing indicators, including structuring and rapid movement of funds, the use of money service businesses and BDCs, informal transfer channels and transactions involving high-risk jurisdictions.

Financial institutions were further directed to conduct a look-back review of past or attempted transactions and business relationships linked to the designated parties.

The apex bank warned that all submissions must be accurate, complete and verifiable, adding that false or misleading information would amount to a regulatory breach punishable under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws.