SEC warns market operators against doing business with bandit clients

The Securities and Exchange Commission (SEC) has called on all capital market operators (CMOs) to screen and verify their clients to clear them of any links with proscribed terrorist groups.

A circular released by the SEC on its website said the call was in line with the gazette released by the federal government proscribing the activities of bandits, terrorists and kidnappers.

The commission urged the operators to file any suspicious transaction reports immediately to the Nigerian Financial Intelligence Unit (NFIU) in line with their findings.

“All CMOs are hereby notified that this is in line with the requirements of the Terrorism Prevention Act (No. 10) and Terrorism (Prevention) Proscription Order Motion, 2021. The federal government has declared the activities of Yan Bindiga Group, Yan Ta’adda Group and other similar group in Nigeria as terrorism and illegal,” stated SEC.

It added that the government proscribed “their existence and restrained any person or group of persons from participating in any manner whatsoever or any form in their activities.”

By this, SEC told all the CMOs that they “are required by this circular to screen and verify every client against the above-proscribed groups and any other proscribed terrorist group(s) on United Nation Security Council Resolutions (UNSCRs) list, Office of Foreign Assets Control (OFAC) list.”

The screening and verification should be done prior to onboarding a new client and when carrying out one-off transaction(s).

The federal government had released a publication gazetting the bandits, kidnappers and others as terrorists’ activities.