Capital

SEC Announces FG’s Official Gazette On Proscription of Banditry and Screening Of Clients


Please be informed that the Securities and Exchange Commission (“SEC” or the “Commission”) has published the following information on its website:

1.FG’s Official Gazette On Proscription Of Banditry And Screening Of Clients Against Sanction Lists


On 17 January 2022, the Commission released a circular notifying all Capital Market Operators (CMOs) of the Federal Government of Nigeria’s proscription of the existence of YAN BINDIGA GROUP, YAN TA’ADDA GROUP and other similar Groups, and the resultant requirement to screen clients against the Groups.

In line with the requirements of the Terrorism Prevention Act (No. 10, 2011) and Terrorism (Prevention) Proscription Order Motion, 2021, the Federal Government declared the activities of “YAN BINDIGA GROUP, YAN TA’ADDA GROUP and other similar Groups in Nigeria” to be terrorism and illegal, and restrained any person or group of persons from participating in activities of any of the Groups.

By the SEC Circular, all Capital Market Operators (CMOs) are now required to screen and verify every client against the above proscribed groups and any other proscribed terrorist group(s), the United Nation Security Council Resolutions (UNSCRs) list, Office of Foreign Assets Control (OFAC) list, etc. prior to the on-boarding of a new client, and when carrying out one-off transaction(s). In addition, all existing clients of CMOs must be screened prior to executing any transaction from the date of the Circular (17 January 2022).

Also, CMOs are required to file suspicious transaction reports (STRs) immediately to the Nigerian Financial Intelligence Unit (NFIU) in line with the findings of the screening exercise.

Attached hereto is the Proscription Order for ease of reference.

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