Implementation Of FATF Statements On High-Risk Jurisdictions Subject To A Call For Action And Jurisdictions Under Increased Monitoring

CIRCULAR TO ALL CAPITAL MARKET REGULATED ENTITIES Implementation Of FATF Statements On High-Risk Jurisdictions Subject To A Call For Action And Jurisdictions Under Increased Monitoring The Financial Action Task Force (FATF), at its February 2026 Plenary Session, issued updated statements identifying jurisdictions that pose significant money laundering, terrorist financing, and proliferation financing risks. These jurisdictions are categorized as:
Pursuant to its powers under the Investments and Securities Act, 2025, and the SEC AML/CFT Rules and Regulations, the Securities and Exchange Commission (“the Commission”) hereby directs all Capital Market Regulated Entities (“CMREs”) to implement the following measures with immediate effect. A. HIGH-RISK JURISDICTIONS SUBJECT TO A CALL FOR ACTION Democratic People’s Republic of Korea (DPRK) All CMREs shall:
Terminate all correspondent banking relationships with financial institutions incorporated in, owned, or controlled by persons or entities in the DPRK; Ensure that no subsidiaries, branches, or representative offices of DPRK financial institutions are established or maintained within their operations; and Restrict or, where appropriate, refuse business relationships and transactions involving DPRK nationals, entities, government bodies, or persons acting on their behalf. Iran All CMREs shall:
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; and Refrain from establishing or operating branches, subsidiaries, or representative offices in Iran where deficiencies in its AML/CFT/CPF framework may compromise compliance obligations. Myanmar All CMREs shall 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. B. JURISDICTIONS UNDER INCREASED MONITORING The following jurisdictions are currently under increased monitoring by the FATF:
Algeria, Angola, Bolivia, British Virgin Islands (BVI), Bulgaria, Cameroon, Côte d’Ivoire, Democratic Republic of the Congo, Haiti, Kenya, Lao PDR, Lebanon, Monaco, Namibia, Nepal, South Sudan, Syria, Venezuela, Vietnam, and Yemen. All CMREs shall:
NIGERIA’S SANCTIONS (NIGSAC) ALERTS
All CMREs that have not subscribed to Nigeria’s Sanctions (NigSac) Alerts system are hereby directed to do so immediately. Subscription is mandatory to ensure timely access to terrorist financing and proliferation financing designations and to support the effective implementation of Targeted Financial Sanctions (TFS). Take Note that at all times, any unusual or suspicious transactions shall be promptly reported to the Nigerian Financial Intelligence Unit (NFIU) . This circular takes immediate effect and failure to comply with these directives shall constitute a violation of the Investments and Securities Act, 2025, and the SEC AML/CFT Rules and Regulations and would attract appropriate regulatory sanctions, including fines, suspension of operations, or revocation of registration. SIGNED MANAGEMENT JUNE 19, 2026