Terrorist groups are using the South African financial system to move funds – Africa Bitcoin News

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

Millions of dollars laundered

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

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

According to the report, while the Islamic State is supposed to direct transactions involving global affiliates, funding for African affiliates is normally handled by the terror group’s office in Somalia. Nevertheless, according to an unnamed member of the (UN) state, South Africa has become an important center for “facilitating the transfer of funds” from the group to its affiliates in places such as the DRC, Mozambique and Nigeria.

According to the report, “the United Nations monitoring team is aware of several large transactions totaling more than $1 million.” The UNSC document, according to the report, reveals 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 the financing of branches and Islamic State networks across Africa”.

Terrorist Groups Allegedly Seeking Crypto Donations

Yet, despite being monitored, African terrorist groups continue to receive millions of dollars in funding from their backers. Al Shabaab – a subsidiary of Islamic State’s rival al-Qaeda – would receive $24 million a year, earmarked for arms acquisition, according to the report. All in all, Al Shabaab would earn between 50 and 100 million dollars.

Meanwhile, the UNSC document also claimed that the Islamic State and al-Qaeda may seek to receive donations in the form of cryptocurrencies.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

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