Terrorism financing: ABCON backs US sanctions, assures compliance

The Association of Bureaux De Change Operators of Nigeria has strongly condemned terrorism financing, declaring its full support for recent domestic and international enforcement efforts aimed at safeguarding the integrity of Nigeria’s financial system.

The association’s stance follows recent targeted actions by the United States Department of the Treasury’s Office of Foreign Assets Control against certain individuals and entities allegedly involved in facilitating terrorist financing.

In a statement released on Wednesday, ABCON clarified that the recent US sanctions should not be interpreted as a blanket indictment of the entire Bureau De Change sector in Nigeria, noting that the overwhelming majority of licensed operators conduct business in strict compliance with regulations.

“Sanctions are directed at specific individuals or entities based on intelligence and investigations and should not be interpreted as an indictment of the entire BDC industry,” the association stated.

To reinforce its commitment to a clean foreign exchange market, ABCON unveiled a comprehensive seven-point counter-measure strategy designed to curb illicit financial flows and eliminate loopholes within the sector.

The new framework mandates a zero-tolerance policy for illicit transactions and enforces stricter compliance rules across all member locations nationwide. Key actions outlined include enhanced Know-Your-Customer procedures, stricter verification of customer identities and beneficial ownership, and routine screening against Nigerian, UN and OFAC sanctions lists.

Furthermore, ABCON ordered immediate transaction freezing where required by law and directed operators to ensure the prompt filing of Suspicious Transaction Reports and Currency Transaction Reports to the Nigerian Financial Intelligence Unit.

To future-proof operations, the association is mandating technology and compliance investments, including the deployment of automated Anti-Money Laundering and Counter-Terrorism Financing monitoring systems.

The association also pledged full cooperation with the Central Bank of Nigeria during regulatory examinations and mystery shopping exercises, alongside regular compliance workshops to retrain BDC staff.

Reiterating its commitment to a safer financial space, ABCON stated that it would continue to work hand-in-hand with law enforcement and financial watchdogs to weed out errant operators.

“ABCON remains committed to preserving the integrity, transparency, and credibility of Nigeria’s foreign exchange market,” the statement read. “We support all lawful efforts to identify, investigate, and sanction any individual or institution involved in terrorism financing.

“The association will continue to work closely with the CBN, NFIU, security agencies, and international partners to strengthen compliance and ensure that the Bureau De Change sector is not used as a channel for illicit financial activities.”