The Central Bank of Nigeria (CBN) has strengthened its supervisory framework to deter the use of Nigerian banks and other financial institutions for terrorism financing.
The apex bank disclosed this in a statement by its Acting Director, Corporate Communications/Investor Relations Department, Hakama Sidi-Ali.
Sidi-Ali said terrorism financing supervision had become one of the CBN’s current priorities as part of its ongoing commitment to protecting the Nigerian financial system from abuse by illicit actors.
She said the new supervisory focus covered four broad areas, including how financial institutions managed terrorism financing risks, monitored transactions for signs of terrorism financing, implemented targeted financial sanctions and reported suspicious transactions linked to terrorism.
According to her, the CBN will not wait for problems to surface before taking action, but will apply a risk-based approach under which banks and other financial institutions considered more exposed to terrorism financing risks will receive closer supervisory attention.
She said the approach would include both on-site and off-site engagements to support effective Anti-Money Laundering, Combating the Financing of Terrorism and Countering Proliferation Financing (AML/CFT/CPF) controls across the financial sector.
Sidi-Ali said the measures were being implemented in line with existing legal and regulatory obligations.
“This supervisory focus also supports Nigeria’s ongoing domestic and international cooperation on counter-terrorism financing, counter-proliferation financing, financial integrity, and the protection of the financial system.
“Further supervisory engagement will be undertaken as appropriate,” she said.
She added that the apex bank would continue to apply its risk-based supervisory approach, with further engagements depending on the outcome of its monitoring and checks.
The CBN’s renewed focus comes against the backdrop of recent sanctions imposed on individuals and entities designated as terrorist financiers under the Terrorism Prevention and Prohibition Act (TPPA), 2022.
In line with the provisions of the Act, the Nigeria Sanctions Committee (NSC) recently designated six individuals and three entities as terrorist financiers and subsequently added them to the Nigeria Sanctions List.
The sanctioned individuals include Babangida Muhammed Adamu Hammajam, who was listed for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP).
Abdullahi Umar Usman was listed for providing material support to a designated terrorist organisation through repeated financial transactions, while Ibrahim Abubakar was listed for involvement in terrorism financing and membership of ISWAP.
Others are Adamu Chiroma, listed for involvement in terrorism financing using Bureau De Change (BDC) and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell.
Yakubu Ogirima Ibrahim was also listed for providing material and financial support to the ISWAP Kogi cell.
The sanctioned entities are Nine to Nine BDC Ltd., RC No. 1462752, listed for involvement in facilitating the movement of funds connected to the ISWAP Okene financing network; Generation Currency BDC Ltd., RC No. 1555604, also listed for facilitating the movement of funds connected to the ISWAP Okene financing network; and Abbal Bako & Sons Bureau De Change (BDC), BN: 2323328, listed for involvement in facilitating and channelling funds linked to the ISWAP Okene financing network.
A national circular subsequently directed all operators to immediately identify and freeze, without prior notice, all funds, assets and any other economic resources in their possession belonging to the designated individuals and entities.
The operators were also directed to report the frozen funds, assets and other economic resources to the Secretariat of the Nigeria Sanctions Committee.
The CBN said the strengthened supervisory measures would support Nigeria’s domestic and international efforts to combat terrorism financing, proliferation financing and other threats to the integrity of the financial system.
