The Securities & Exchange Commission (SEC) has banned additional 10 individuals and three entities related to them from engaging in capital market activities in the country following their 2019 conviction and sentencing for terrorism financing by a court in the United Arab Emirates.
The individuals and entities that are subject to assets freeze, travel ban and arms embargo are Abdurrahaman Musa Ado (NLJASi.1), Bashir Ali Yusuf (NLJASi.2), Ibrahim Ali Alhassan (NLJASi.3), Muhammad Ibrahim Isah (NLJASi.4), Salihu Yusuf Adamu (NLJASi.5), and Surajo Abubakar Mohammad (NLJASi.6).
Others are: Fannami Alhaji Bukar (NLJASi.7), Muhammed Musa (NLJASi.8), Sahabi Ismail (NLJASi.9), and Mohammed Saleh Buba (NLJASi.10). The entities are Alin Yar Yaya General Enterprises (NLJASi.11), Are Nigeria Limited (NLJASe.12), as well as Suhailah Bashir General Enterprises (NLJASe.13).
In line with the provisions of Section 54 of the Terrorism (Prevention and Prohibition) Act, 2022, SEC circular requires all CMOs immediately to “identify and freeze, without prior notice, all funds, assets, and any other economic resources belonging to the designated persons and entities in your possession and report same to the Secretariat of the Nigeria Sanctions Committee.”
This asset freezing mechanism, it stressed, “is a preventive tool to disrupt terrorist support and activity and it is incumbent on financial institutions and designated non-financial businesses and professions to comply with the asset freezing obligations, giving the potential of both criminal and civil liabilities for non-compliance as well as the reputational risks for financial institutions and DNFBPs of being seen to be in breach of the asset freezing mechanism.”
Capital market operators are also to “report to the Secretariat of the Nigeria Sanctions Committee, any assets frozen or actions taken in compliance with the designation, including attempted transactions; immediately file a suspicious transactions report to the NFIU (Nigerian Financial Intelligence Unit) for further analysis on the financial activities of such an individual or entity; and report as a suspicious transactions report to the NFIU, all cases of name matching in financial transactions prior to or after receipt of the Nigerian Sanctions List.”
Afterwards, the commission ordered all market operators to “prohibit dealings with the designated persons and entities and to continue to check for transactions relating to the designated person or entity and the actions to be taken if funds or other assets or suspect transactions are discovered.”
Specifically, the circular noted “that this freezing obligation extends to all funds or other assets that are owned or controlled by the designated person or entity, and not just those that can be tied to a particular act, plot, or threat of terrorism or terrorism financing; those funds or other assets that are wholly or jointly owned or controlled, directly or indirectly, by designated persons or entities; the funds or other assets derived or generated from funds or other assets owned or controlled directly or indirectly by designated persons or entities; and funds or other assets of persons and entities acting on behalf of, or at the direction of designated persons or entities.”
Also, market operators are to communicate actions taken pursuant to this publication to the Secretariat of the Nigeria Sanctions Committee through email@example.com
The circular noted that the individuals and entities based in Nigeria were designated following their April 17, 2019 conviction and sentence by the Abu Dhabi Federal Court of Appeal to 10 years in prison “for collaborating with the terrorist group Boko Haram terrorist group of Nigeria, by collecting money in Dubai and sending it to the group in Nigeria.”
The individuals, all of who resided in Kano with a few exceptions, were also found to be members of Boko Haram and the Islamic State West African Province (ISWAP), while Salihu Yusuf Adamu (AKA: Babangida Adamu), aged 32, was convicted and sentenced to “life imprisonment based on charges of being a member of Boko Haram/ISWAP in charge of collection of terrorist funds from unidentified sources in Dubai for the purpose of supporting the activities of Boko Haram in Nigeria.”
Surajo Mohammad, 54, on his part, was convicted and jailed for life “on terrorism related charges including being a member of JAS (Boko Haram) in charge of facilitating, transporting and exchanging money from Dubai Emirates to Nigeria for the purpose of supporting the activities of Boko Haram in Nigeria.”
Alhaji Bukar, a resident of Metropolitan Maiduguri, Borno State, was designated for being a member of the Boko Haram terrorist group, terrorism financing, receiving training and rendering support to the group, just like Mohammed Saleh Buba; while Muhammed Musa and Sahabi Ismail were listed for same reason, in addition to “concealment of information, attending terrorist meeting and provision of facility in support of terrorist acts.”
Alin Yar Yaya General Enterprises based in Fagge, Kano, and registered on April 15, 2016, was designated following the conviction of its promoter, Bashir Ali Yusuf, just like K. Are Nigeria Limited, linked to Surajo Abubakar Muhammad, while Suhailah Bashir General Enterprises, promoted by Bashir Ali Yusuf.