The Securities and Exchange Commission (SEC) has directed 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 contained in an October 27 publication of the sanctions notices issued in an October 16, 2026 circular obtained by Nairametrics, followed by additional sanctions notices issued on October 19 and October 22.

However, interviews with capital market operators revealed uneven awareness of the directives, raising concerns about how effectively the Commission communicates compliance obligations across the industry.

Responding to Nairametrics’ enquiries, the SEC explained that it disseminates the circulars through its website, registered trade groups and the Committee of Chief Compliance Officers of the Capital Market Operators in Nigeria (CCCOCIN).

The Commission also said all regulated entities are required to subscribe to Nigerian Sanctions List (NigSac) alerts to receive automatic notifications whenever new designations are made.

SEC orders immediate asset freezes:

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.

• Besides Mehsud and TTP, the designated individuals 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, while filing suspicious transaction reports with the Nigerian Financial Intelligence Unit.
• Firms must cease dealings with designated persons and entities, continue monitoring transactions and report relevant findings to the NSC.
• The SEC’s October 19 circular added Paek Chang-Ho and Ra Ky’ong-Su following 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.

A third circular, issued on October 22, added DCB Finance Limited to the sanctions list, subjecting operators to the same compliance obligations.

The directives require immediate action rather than waiting for a separate notice before freezing relevant assets.

Previous SEC sanctions target operators:

The October circulars followed earlier SEC directives requiring capital market operators to implement sanctions and strengthen monitoring of financial transactions.

Nairametrics reported in August that the Commission instructed operators to subscribe to NigSac Alerts following the designation of six individuals and three Nigerian entities.

The latest circulars extend these existing compliance obligations to newly designated individuals and entities.

However, interviews conducted by Nairametrics suggest that awareness of the notices varies among operators.

Charles Fakrogha, Chief Executive Officer of ECL Asset Management Limited, said individual firms bear responsibility for reviewing sanctions lists and identifying affected customers.

He explained that firms must examine their customer records and determine whether any designated individual or entity has transacted with them.

Fakrogha also identified inherited customer records as a challenge, particularly for firms managing large client portfolios following acquisitions.

He noted that some operators have as many as 20,000 customers, making comprehensive screening more demanding.

Market operators flag awareness gaps:

Fakrogha said 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 argued that regulators should improve communication with supervised entities to ensure that compliance requirements are understood.

• “The issue is primarily one of awareness,” Fakrogha said.
• “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.
• “There needs to be better dissemination of information to ensure that operators are adequately informed and kept abreast of such developments,” said Dr. Ayodeji Ebo, CEO of MDU Capital Limited.

Kebira said he had not seen the circulars and had assumed they concerned foreign investors, although the directives apply to all CMREs regardless of their customer composition.

He also argued that SEC notices should be communicated directly to operators rather than relying on industry associations to relay them.

Ebo similarly confirmed that he was unaware of the three October circulars and called for improved distribution.

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 noted that the directives were more directly relevant to institutions receiving, holding or managing customer funds.

Sanctions breaches carry severe penalties:

The SEC’s directives impose immediate compliance obligations on regulated entities, regardless of whether individual operators have seen the published circulars.

The October circulars do not disclose whether any assets have been identified or frozen.

The feedback from a cross-section of market operators highlights a distinction between the Commission’s publication of sanctions notices and operators’ awareness of their contents.

• Some respondents said they had not received or reviewed the directives, while others emphasised the practical challenges of screening extensive customer records.
• The comments also raise questions about whether publishing notices on the SEC’s website provides sufficient visibility for obligations requiring immediate action.
• For regulated firms, the directives remain applicable even where they have no known dealings with the designated persons or entities.

The effectiveness of the measures will therefore depend not only on the publication of sanctions lists but also on operators’ ability to identify relevant accounts, implement required restrictions and report transactions to the appropriate authorities.