From CompliNEWS | Financial Service Intelligence Watch
South Africa identified as key financial hub for ISIS in Central Africa, US Treasury sanctions local entities
The Counter Isis Finance Group has issued a warning about South Africa’s significant role in channelling funds to Islamic State (Isis) branches in Central Africa. According to a recent update, Isis’ al-Karrar Office in Somalia has been transferring money through various branches, including those in South Africa. A report by Fin24 highlights the group’s statement that since 2019, Isis has increasingly depended on its African branches for revenue generation. This shift is attributed to the perception of lesser counter-terrorism measures in Africa compared to the Middle East. The finance group notes that Isis funds primarily come from sources outside the formal economy, enabling its affiliates to sustain insurgencies and conduct attacks on civilians, thereby undermining regional stability in Africa and Asia. In response to these findings, the US Treasury has sanctioned several individuals and companies in South Africa, linking them to a local Isis cell reportedly led by Durban businessman Farhad Hoomer.
Read the Full Fin24 report here