SEC Tightens Cross-Border Controls, Restricts Capital Market Dealings With Iran, North Korea

The Securities and Exchange Commission has directed capital market operators to restrict dealings with financial institutions in North Korea and Iran over money laundering and terrorism financing risks.

The directive was contained in a circular issued to all capital market regulated entities and dated June 19, 2026.

For North Korea, the SEC ordered operators to terminate correspondent banking relationships with financial institutions incorporated in, owned or controlled by persons or entities in the country.

Operators were also directed not to establish or maintain branches, subsidiaries or representative offices of North Korean financial institutions in Nigeria.

The SEC said operators should also restrict or, where necessary, refuse business relationships and transactions involving North Korean nationals, entities and government bodies.

For Iran, the commission directed operators to refuse to process or facilitate transactions with Iranian financial institutions.

It also barred operators from establishing or maintaining branches, subsidiaries or representative offices of Iranian financial institutions in Nigeria.

SEC Orders Enhanced Checks On Myanmar

The SEC directed capital market operators to apply enhanced due diligence to customers, transactions and business relationships linked to Myanmar.

Operators are expected to increase the frequency and intensity of transaction monitoring based on the risks involved.

The commission also listed 20 jurisdictions under the Financial Action Task Force’s increased monitoring framework.

They include Algeria, Angola, Bolivia, British Virgin Islands, Bulgaria, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Haiti, Kenya, Laos, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam and Yemen.

The SEC directed operators to apply appropriate risk-based measures when dealing with the listed jurisdictions.

It also ordered capital market operators that have not subscribed to Nigeria’s Sanctions alerts system, NigSac, to do so immediately.

The regulator said the system would provide timely access to terrorist financing and proliferation financing designations.

The SEC further directed operators to promptly report unusual or suspicious transactions to the Nigerian Financial Intelligence Unit.

The commission warned that failure to comply would violate the Investments and Securities Act 2025 and its AML/CFT rules.

Violations could attract fines, suspension of operations or revocation of registration.