Banks, Firms at Risk: FG Vows Action Against Terrorism Financing in Nigeria
The Federal Government of Nigeria (FG) has sounded a stern warning to banks, accounting firms, and other financial institutions: those found channelling funds to terrorist groups will face prosecution
This development comes against the backdrop of increased regulatory scrutiny and enforcement under the national Anti‑Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework, overseen by the Central Bank of Nigeria (CBN) and intelligence bodies such as the Nigerian Financial Intelligence Unit (NFIU).
The move follows the FG’s recent naming of 15 individuals and firms — including several bureau-de-change and trading companies — accused of financing terrorism. Their assets have been frozen, and financial institutions are barred from transacting with them.
To date, the government says it has prosecuted and convicted over 100 terrorist financiers in the past two years.
This approach underscores a broader national strategy that recognizes the removal of financial resources — not just kinetic operations — as essential to dismantling terrorist networks. The government’s emphasis on tracing and prosecuting financiers aligns with global best practices, and marks a significant escalation in enforcement.
For Nigeria’s financial sector, this raises the stakes for compliance. Banks and other regulated institutions must now enhance due‑diligence, monitor suspicious transactions closely, and ensure full adherence to AML/CFT obligations — failure could lead not only to regulatory sanctions but criminal prosecution.
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