Nigeria’s SEC orders capital market firms to restrict dealings with Iran, two other countries

Nigeria’s Securities and Exchange Commission, SEC, has ordered capital market firms to suspend dealings with financial institutions in North Korea, Iran and Myanmar.

The SEC issued the directive in a circular released on Friday to listed entities and other Capital Market Regulated Entities, CMREs, citing the Financial Action Task Force, FATF.

Accordingly, the SEC explained that the move was in line with FATF measures concerning jurisdictions posing significant money laundering, terrorism financing and proliferation financing risks under the Investments and Securities Act (ISA) 2025.

For North Korea, the commission directed CMREs to terminate correspondent banking relationships with financial institutions incorporated in, owned or controlled by persons or entities in the country.

“Ensure that no subsidiaries, branches, or representative offices of DPRK financial institutions are established or maintained within their operations,” the SEC said.

“Restrict or, where appropriate, refuse business relationships and transactions involving DPRK nationals, entities, government bodies, or persons acting on their behalf.”

For Iran, the commission directed operators to refuse to process or facilitate transactions with Iranian financial institutions.

“Refuse to process or facilitate transactions with Iranian financial institutions and decline to establish or maintain subsidiaries, branches, or representative offices of such institutions in Nigeria,” the market regulator added.

The SEC further directed operators to refrain from establishing or operating branches, subsidiaries or representative offices in Iran where deficiencies in the country’s AML/CFT/CPF framework could compromise compliance obligations.

For Myanmar, the commission directed CMREs to apply enhanced due diligence measures proportionate to the risks associated with the country.

“Apply enhanced due diligence measures commensurate with the risks associated with Myanmar, including increased frequency, scope, and intensity of transaction monitoring for customers, transactions, and business relationships connected to Myanmar,” the SEC said.

The SEC further drew the attention of capital market operators to jurisdictions currently under FATF increased monitoring.

They are Algeria, Angola, Bolivia, the British Virgin Islands, Bulgaria, Cameroon, Côte d’Ivoire, the Democratic Republic of the Congo, Haiti, Kenya, Lao PDR, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam and Yemen.

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