CBN orders banks to freeze accounts linked to terrorists

By Philippine Duru

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The Central Bank of Nigeria (CBN) has directed all banks, payment service banks and other regulated financial institutions to immediately freeze the accounts, assets and financial transactions of six individuals and four Bureau de Change (BDC) operators over alleged links to terrorism financing.

The directive, contained in a circular dated June 24, 2026, marks one of the latest measures by the apex bank to strengthen Nigeria’s anti-money laundering and counter-terrorism financing framework. The order followed recent sanctions issued by the Nigeria Sanctions Committee (NIGSAC) and the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) under Executive Order 13224, as amended.

According to the CBN, all regulated financial institutions must immediately identify and 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 directive also extends to businesses or organisations that are owned 50 per cent or more, individually or collectively, by the sanctioned persons.

The six individuals listed under the sanctions regime are Muktar Muhammad Adamu, Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma and Yakubu Ogirima Ibrahim.

The four Bureau de Change operators affected by the sanctions 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. Authorities allege that the businesses are owned or controlled by the designated individuals.

Beyond freezing accounts, the CBN instructed financial institutions to screen all existing customers, beneficial owners and every incoming and outgoing transaction against the updated sanctions list, including known aliases and identifiers. Banks have also been directed to ensure that no funds, financial services or economic resources are made available, directly or indirectly, to any of the sanctioned persons or entities.

The apex bank further ordered institutions to immediately file Suspicious Transaction Reports (STRs) with the Nigerian Financial Intelligence Unit (NFIU) for any confirmed or attempted matches involving the designated persons. In addition, banks must submit compliance reports to the CBN within 48 hours, detailing the number of affected accounts, the value of assets frozen, restrictions imposed and actions taken. Institutions that find no matching accounts are also required to submit mandatory nil returns.

To strengthen compliance, the CBN directed financial institutions to intensify monitoring for terrorism financing indicators, including structured cash transactions, rapid movement of funds, the use of money service businesses and bureaux de change, informal transfer channels and transactions involving high-risk jurisdictions. Banks were also instructed to conduct retrospective reviews of customer relationships and previous transactions to identify any historical links with the designated persons or entities.

The regulator warned that any false, incomplete or misleading compliance reports would constitute regulatory violations and attract sanctions under the Banks and Other Financial Institutions Act (BOFIA) 2020 and other applicable laws. It added that compliance would be verified through off-site reviews, on-site examinations and supervisory engagements across the banking industry.

The latest directive comes amid intensified domestic and international efforts to disrupt financial networks suspected of supporting extremist organisations. Nigerian authorities have continued to tighten financial surveillance and align the country’s sanctions enforcement with global standards aimed at combating terrorism financing and illicit financial flows. Analysts say the move is expected to reinforce confidence in Nigeria’s financial system while demonstrating the country’s commitment to meeting international anti-money laundering and counter-terrorism financing obligations.