SEC orders freeze on terror-linked assets, but market operators say they are unaware

On October 27, the Securities and Exchange Commission (SEC) issued an order for capital market regulated entities (CMREs) to freeze funds, assets, and resources linked to UN-designated terrorist financiers, including Tehrik-e Taliban Pakistan (TTP) and its leader, Noor Wali Mehsud. This directive was part of a series of sanctions notices released on October 16, 19, and 22, as reported by Nairametrics.

However, interviews with industry professionals revealed inconsistent awareness of these directives, prompting concerns about the SEC's communication methods. The SEC shared these circulars through its website, trade groups, and the Committee of Chief Compliance Officers of the Capital Market Operators in Nigeria (CCCOCIN). Additionally, all regulated entities were required to subscribe to the Nigerian Sanctions List (NigSac) alerts for automatic notifications of new designations.

The October 16 circular covered three individuals and one entity, later expanded to include DCB Finance Limited on October 22. Operators are mandated to take immediate action upon identification of affected accounts. Despite the SEC's efforts, some market participants, such as Charles Fakrogha of ECL Asset Management Limited, expressed limited awareness of the directives, attributing it to challenges in tracking large customer bases.

Other operators, like Kebi and Ebo, also admitted to not having seen the circulars, calling for clearer communication from regulators. The effectiveness of these measures hinges on both the SEC's communication and operators' ability to identify and freeze relevant accounts.