Capital Market Operators Warned not to do Business with IPOB, Yoruba Nation, Bandits, Others
- The Security and Exchange Commission has asked Capital Market Operators not have anything to do with proscribed groups like IPOB, Yoruba Nation and others
- The SEC cited a recent gazette of the Nigerian government declaring bandits as terrorists in Nigeria
- It asked operators to carefully vet persons or group of persons before doing any business or onboarding them
Capital Market Operators have been warned by Nigeria’s Securities and Exchange Commission not to do business with proscribed terrorist groups in any part of the country.
In a circular, seen by Legit.ng, the SEC disclosed that Nigeria’s Justice Ministry has gazette a declaration criminalising bandits as terrorists
Source: UGC
Vet before onboarding
The SEC said operators would be screened before carrying out any transactions from the date of the circular.
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What SEC said.
“Capital Market Operators (CMOs) are hereby notified that in line with the requirements of the Terrorism Prevention Act (No. 10,2011) and Terrorism (Prevention) Prescription Order Motion, 2021, the Federal Government of Nigeria has declared the activities of “YAN BINDIGA GROUP”, YAN TA’ADDA GROUP AND OTHER SIMILAR Groups in any part of Nigeria as Terrorism and Illegal.”
According to the SEC, the Nigerian government has proscribed their existence restrained anybody or group of persons from taking part in any way, in any form with the proscribed groups.
Confirm identities of entities
The SEC urged CMOs to carefully screen and confirm every client against the illegal groups. It mentioned the United Nations Security Council Resolutions list, the Office of Foreign Asset Control list and others before onboarding new clients and doing one-off transactions.
SEC warns against Ponzi schemes
Meanwhile, Legit.ng reported that Nigeria’s Securities and Exchange Commission (SEC) has warned the public over the operations of FinAfrica Investment Limited based in Enugu and Poyoyo Investment in Lagos that they are Ponzi schemes as they do not have viable business models.
The Exchange said the operations of the outfits are illegal as they are not recognised by Commission.
In the circular by the management of the SEC which was published on its website on Tuesday, December 27, 2021, the Commission said the operational style of the companies is not authorised by it.
Source: Legit.ng
