CBN Orders Banks To Freeze Accounts Of Terrorism Financing Suspects

The Central Bank of Nigeria (CBN) has directed commercial banks and other financial institutions to immediately freeze the accounts of individuals and entities suspected of financing terrorism.

The directive, issued to all deposit money banks, requires immediate compliance with a list of accounts linked to terrorist activities and illicit financial networks, as part of the apex bank's sustained efforts to combat terrorism financing and safeguard the integrity of Nigeria's financial system.

According to the CBN, the order aligns with Nigeria's obligations under international anti-money laundering and counter-terrorism financing frameworks, as well as domestic laws regulating financial crimes and national security.

The directive follows intelligence reports and recommendations from relevant security agencies and financial intelligence units, which identified specific accounts allegedly being used to channel funds to terrorist groups and criminal networks.

Banks have been mandated to conduct immediate reviews of their customer databases, flag suspicious transactions, and ensure full compliance with the freeze order. The CBN warned that any financial institution found aiding, abetting, or circumventing the directive would face severe regulatory sanctions.

"The Central Bank remains committed to ensuring that Nigeria's financial system is not exploited by terrorists or criminal elements to fund illegal activities. All banks are expected to comply immediately and submit their compliance reports within the stipulated timeframe," the apex bank stated.

Terrorism financing has remained a critical concern for Nigeria's financial and security sectors, with criminal networks increasingly exploiting formal banking channels, mobile money platforms, and informal transfer systems to fund their operations.

The CBN's latest directive underscores the growing synergy between financial regulators, security agencies, and financial institutions in tracking, disrupting, and cutting off illicit funding streams that sustain terrorist activities across the country.

Financial sector experts have commended the move, noting that disrupting the financial lifelines of terrorist networks is a crucial step in weakening their operational capacity. They, however, called for robust due diligence and verification processes to ensure that legitimate account holders are not inadvertently affected.

The directive also reinforces the CBN's broader financial crime prevention framework, which includes enhanced customer due diligence, transaction monitoring, and mandatory reporting of suspicious financial activities to the Nigerian Financial Intelligence Unit (NFIU).

The apex bank reiterated its commitment to maintaining a secure, transparent, and resilient financial system, urging all stakeholders to remain vigilant and report suspicious activities through appropriate regulatory and security channels.

The freeze order takes immediate effect, with banks expected to comply fully and provide regular updates to the CBN on the implementation of the directive.