US regulators put a hold on funds supposedly tied to half-dozen terrorism backers

The Securities and Exchange Commission has issued a directive to capital market operators, instructing them to immediately freeze the funds, assets, and economic resources of six individuals and three entities that have been designated as terrorist financiers by the Nigeria Sanctions Committee. This move is in line with the provisions of the Terrorism Prevention and Prohibition Act 2022.

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The directive was communicated to all Capital Market Regulated Entities via a circular on Friday, and it affects six designated individuals, including Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu, and Yakubu Ogirima Ibrahim.

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The three corporate bodies that have been placed on the sanctions list are Nine to Nine BDC Ltd, Generation Currency BDC Ltd, and Abbal Bako & Sons Bureau de Change, all of which are accused of channelling funds linked to terrorist activities.

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According to the capital market regulator, Hammajam was listed on June 18, 2026, for his involvement in terrorism financing and active support for the Islamic State West Africa Province, while Usman was sanction-listed for providing material assistance to a designated terrorist organisation.

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Abubakar was listed for terrorism financing and direct membership of ISWAP, and Chiroma allegedly utilised Bureau De Change operations and affiliated corporate entities to move funds linked to terrorist activities.

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Muktar Adamu was listed on June 15, 2026, for facilitating financial network operations for the ISWAP Okene cell, and Ibrahim provided financial and material support to the ISWAP Kogi cell.

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The three BDCs were indicted for channelling funds linked to the same Okene financing network, highlighting the need for regulatory scrutiny of Bureau De Change operators.

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This action comes amid intensified efforts by Nigerian authorities to disrupt the financial lifelines of insurgent groups operating in the North-East and North-Central regions, where such groups have been known to operate.

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Under the TPPA 2022 and Nigeria’s Sanctions Framework, financial institutions and capital market operators are mandated to act swiftly on sanctions lists issued by the NSC to prevent illicit funds from flowing through the formal financial system.

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The SEC has mandated CMREs to identify and freeze all listed assets without prior notice to the designated individuals or entities, and to submit full compliance reports to the Secretariat of the Nigeria Sanctions Committee.

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Operators were also instructed to file Suspicious Transaction Reports directly with the Nigerian Financial Intelligence Unit for deep analysis, and to report as suspicious transactions all cases of name matches in financial transactions.

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The SEC has prohibited all forms of business dealings with the sanctioned entities, directing operators to maintain continuous monitoring across all accounts, and warning of strict consequences for non-compliance.

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Non-compliance constitutes a severe violation of the Investments and Securities Act 2025 as well as the SEC Anti-Money Laundering/Combating the Financing of Terrorism Rules and Regulations, and defaulting operators risk regulatory sanctions, including heavy financial penalties.

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Regulatory sanctions may also include operational suspension, or complete revocation of registration licences, emphasizing the need for capital market operators to take the directive seriously and comply promptly.