The Securities and Exchange Commission (SEC) has directed capital market operators to immediately freeze funds and assets linked to individuals and organisations designated for terrorism financing, warning that failure to comply could result in fines, suspension of operations or revocation of registration.
The directive is contained in a circular dated October 16, 2026, signed by the Commission’s management and published alongside additional sanctions notices issued on October 19 and October 22.
The October 16 circular followed the designation of three individuals and one organisation by the Nigeria Sanctions Committee (NSC) under the Terrorism Prevention and Prohibition Act, 2022.
The designated individuals include Kim Jung Jong, a former representative of Tanchon Commercial Bank in Vietnam; Mounir El Motassadeq, convicted in Germany in 2007 for terrorism-related offences; and Noor Wali Mehsud, leader of Tehrik-e Taliban Pakistan (TTP).
The organisation designated is Tehrik-e Taliban Pakistan, which operates along the Afghanistan-Pakistan border.
In the circular addressed to all Capital Market Regulated Entities (CMREs), SEC directed institutions to immediately identify and restrict assets belonging to the designated persons and organisation.
The Commission states that, “immediately identify and freeze, without prior notice, all funds, assets, and all other economic resources belonging to the designated persons and entities in their possession and report same to the Secretariat of the Nigeria Sanctions Committee.”
The circular further requires regulated entities to report all frozen assets and compliance actions, including attempted transactions involving designated individuals and organisations.
It also directs institutions to immediately submit suspicious transaction reports to the Nigerian Financial Intelligence Unit (NFIU) for further analysis.
“Immediately file a suspicious transaction report with the NFIU for further analysis of the financial activities,” the circular stated.
SEC also instructed regulated entities to report all cases of name matching in financial transactions, whether identified before or after receiving the sanctions list, as suspicious transactions to the NFIU.
Beyond freezing assets, the Commission directed institutions to terminate business relationships with the designated persons and entities and maintain continuous monitoring of transactions involving them.
The circular stated that regulated entities must “subsequently cease/desist from all dealings with the designated persons and entity” and continue monitoring related transactions, reporting any findings to the Nigeria Sanctions Committee through its designated email address.
The Commission warned that failure to comply with the directives would attract regulatory sanctions.
“Failure to comply with these directives constitutes a violation of the Investments and Securities Act, 2025, Terrorism Prevention and Prohibition Act (TPPA), 2022, and the SEC AML/CFT/CPF Regulations, 2023 and shall attract appropriate regulatory sanctions, including fines, suspension of operations, or revocation of registration,” the circular stated.
It added that the directive takes immediate effect and that unusual or suspicious transactions must be promptly reported to the NFIU.
A subsequent circular issued on October 19 added Paek Chang-Ho and Ra Ky’ong-Su to the sanctions list following their inclusion on the United Nations Security Council’s consolidated sanctions list.
On October 22, the Commission issued another notice following the designation of DCB Finance Limited by the United Nations Security Council and its subsequent addition to Nigeria’s sanctions list.
The October 22 circular extended the same asset-freezing and reporting obligations to the designated entity.
SEC also made subscription to the Nigerian Sanctions List (NigSac) Alerts system mandatory for regulated entities that had not already enrolled. The system provides notifications when new individuals and organisations are added to the sanctions list.
