SEC warns capital market operators against working with clients linked to proscribed terrorist groups

Nigeria’s security and Exchange Commission has notified Capital Market Operators (CMOs) not to work with clients related to proscribed terrorist groups in any part of Nigeria.

The SEC disclosed this in a circular after Nigeria’s Justice Ministry revealed a gazette declaring bandit groups operating in any parts of the country as Terrorists.

They added that existing CMOs would be screened prior to executing any transaction from the date of the circular.

The SEC warned that “Capital Market Operators (CMOs) are hereby notified that in line with the requirements of the Terrorism Prevention Act (No. 10,2011) and Terrorism (Prevention) Proscription Order Motion, 2021, the Federal Government of Nigeria has declared the activities of “YAN BINDIGA GROUP,” YAN TA’ADDA GROUP AND OTHER SIMILAR Groups in any part of Nigeria as Terrorism and Illegal.”

The SEC added that the FG has proscribed their existence and restrained any person or group of persons from participating in any manner whatsoever in any form in the activities of any of the groups.

They also stated that Capital Market Operators (CMOs) are required to screen and verify every client against the above-proscribed groups and any other proscribed terrorist group(s), citing the  United Nation Security Council Resolutions (UNSCRs) list, Office of Foreign Assets Control (OFAC) list, etc. prior to the on-boarding of a new client and when carrying out one-off transaction(s).

It also urged CMOs to file suspicious transaction reports (STRs) immediately to the Nigerian Financial Intelligence Unit.

The FG released a gazette last week signed by the Attorney General of the Federation and Minister of Justice, Abubakar Malami, SAN officially declaring bandit groups operating in any parts of the country as Terrorists.