SEC Orders Freeze on Terror-Linked Assets, But Market Operators Say They Were Not Aware

The Securities and Exchange Commission (SEC) has ordered all capital market regulated entities (CMREs) to immediately freeze the funds, assets and economic resources of United Nations-designated terrorist financiers, including Tehrik-e Taliban Pakistan (TTP) and its leader Noor Wali Mehsud. The directive was published on October 27 in sanctions notices issued in an October 16, 2026 circular, followed by additional notices on October 19 and October 22.

What the circulars require

The October 16 circular covered three individuals and one entity designated by the Nigeria Sanctions Committee (NSC) under the Terrorism Prevention and Prohibition Act (TPPA) 2022. Apart from Mehsud and TTP, the designations included Kim Jung Jong, a former Tanchon Commercial Bank representative in Vietnam, and Mounir El Motassadeq, who was convicted in Germany in 2007.

CMREs must identify and freeze assets belonging to designated persons or entities without prior notice and report the assets to the NSC Secretariat. Operators must report frozen assets, attempted transactions and relevant name matches. They must also file suspicious transaction reports with the Nigerian Financial Intelligence Unit. Firms must stop dealings with designated persons and entities, continue monitoring transactions and report findings to the NSC.

The October 19 circular added Paek Chang-Ho and Ra Ky’ong-Su after their inclusion on the United Nations Security Council’s consolidated sanctions list. It also made subscription to the NigSac Alerts system mandatory for operators that had not joined. The October 22 circular added DCB Finance Limited to the sanctions list and subjected operators to the same compliance obligations. The SEC said the directives require immediate action, not a separate notice before freezing assets.

The SEC said it circulates the notices through its website, registered trade groups and the Committee of Chief Compliance Officers of the Capital Market Operators in Nigeria (CCCOCIN). It said regulated entities must subscribe to Nigerian Sanctions List (NigSac) alerts to receive automatic notifications whenever new designations are made.

Awareness gaps among operators

Interviews with capital market operators showed uneven awareness. Charles Fakrogha, Chief Executive Officer of ECL Asset Management Limited, said individual firms bear responsibility for reviewing sanctions lists and checking customer records. He became aware of the directives when they were discussed at the Association of Securities Dealing Houses of Nigeria’s annual general meeting on October 28 and 29. He cited inherited customer records as a challenge, especially for firms managing large client portfolios after acquisitions. He said some operators have as many as 20,000 customers, making comprehensive screening more demanding.

“The issue is primarily one of awareness,” Fakrogha said. He argued that regulators should improve communication with supervised entities.

“To be honest, this is not something I have been paying attention to. I wouldn’t want to mislead you,” said Abiodun Kebira, CEO of Globalview Capital Limited. Kebira said he had not seen the circulars and had assumed they concerned foreign investors. He argued that SEC notices should be sent directly to operators rather than relying on industry associations to relay them.

Dr Ayodeji Ebo, CEO of MDU Capital Limited, confirmed he was unaware of the three October circulars. “There needs to be better dissemination of information to ensure that operators are adequately informed and kept abreast of such developments,” Ebo said. He added that asset-freezing instructions from competent authorities are normally authenticated before implementation.

Olubunmi Ayokunle, Head of Financial Institutions Ratings at Augusto & Co., described such measures as established safeguards within the financial system. He said the directives were more directly relevant to institutions receiving, holding or managing customer funds.

Earlier sanctions

The October circulars followed earlier SEC directives. In August, the SEC instructed operators to subscribe to NigSac Alerts after six individuals and three Nigerian entities were designated. In April, it directed operators to freeze assets linked to 10 individuals and three entities. In August, it also told firms to cut ties with North Korea and Iran in line with the Financial Action Task Force’s February 2026 plenary statement. The same directive placed 20 jurisdictions under enhanced monitoring.

The latest notices extend existing compliance obligations to newly designated individuals and entities. For Nigerian capital market operators, the pressure is now on screening customer records and responding to sanctions alerts without waiting for a separate notice.