Terror Groups May Be Using South African Financial System, UNSC Report

Terror Groups May Be Using South African Financial System, UNSC Report

The Islamic State (IS) is allegedly using South Africa’s financial system to channel funds to the group’s affiliates and networks in Africa. The United States government has so far sanctioned four South Africa-based individuals it accuses of facilitating the transfer of funds to African terror groups.

Millions of Dollars Laundered

The United Nations Security Council (UNSC) document alleges affiliates of the Islamic State (IS) in Africa are using the South African financial system to mobilize and launder millions of dollars.

As per a Bloomberg report, some Kenyan and Ugandan sympathizers of the terror group are said to be raising funds in countries like South Africa. The funds are then channeled to a rebel group operating in the Democratic Republic of Congo (DRC).

The report said while the Islamic State is believed to direct transactions involving global affiliates, funding of African affiliates is generally controlled by the Somalia office. UN member state sources have hinted that South Africa has emerged as a hot spot for "facilitating transfers of funds" from the group to its affiliates in places that include the DRC, Mozambique, and Nigeria.

The United Nations report reveals that the "monitoring team is aware of several large transactions totaling more than USD 1 million." The UNSC report also discloses that the United States government has so far sanctioned four people residing in South Africa whom it accuses of using the country’s financial system "to facilitate funding for ISIS branches and networks across Africa."

Terrorist Groups Allegedly Seek Crypto Donations

Despite being watched, African terror groups continue to amass millions of dollars in funding from their sympathizers. The report said Al Shabaab, an affiliate of the Islamic State’s rival al-Qaeda, is estimated to receive USD 24 million annually, which is designated for weapons acquisitions. The total annual earnings of Al Shabaab are estimated at between USD 50 million and USD 100 million.

Meanwhile, the UNSC document also claimed that both the Islamic State and al-Qaeda might be seeking to receive donations in the form of cryptocurrencies.