- These businesses, along with their affiliates in Kenya, Uganda, Somalia, Cyprus and UAE form the backbone of a sophisticated network that launders millions of dollars for Al-Shabaab.
- US says firms such as Nairobi-based Crown Bus Services and other investment projects that masquerade as legit commercial ventures, empower Al-Shabaab’s lethal agenda.
- Al-Shabaab is estimated to siphon over $100 million per year from the regional and global financial system.
The US, through its Department of the Treasury’s Office of Foreign Assets Control (OFAC), has cast a wide net across the UAE, Kenya, Uganda, and Somalia, targeting entities and individuals with wide-ranging sanctions for their complicity in financing Al-Shabaab terror network.
This designation, enveloping 16 entities and individuals, reveals the intricate web of financial operations spanning from the Horn of Africa to the opulent corridors of the United Arab Emirates (UAE) and the serene island nation of Cyprus.
This sprawling network, carefully pieced together by OFAC, underscores a grim reality: the battle against terrorism is fought not just in the shadows but within the ledgers and bank accounts of seemingly legitimate businesses.
At the heart of this sanction lies Al-Shabaab, a group affiliated with al-Qa’ida, notorious for orchestrating some of the most heinous acts of terror in East Africa’s recent history. The designation of these entities and individuals under Executive Order (E.O.) 13224, as amended, which squarely targets terrorist groups and their facilitators, marks a critical step in the global effort to dismantle the financial underpinnings of terrorism.
Supporting Al-Shabaab estimated at $100 million annually
This action not only signals a robust commitment by the US to root out terror financing networks but also illuminates the complex channels through which terrorist groups like Al-Shabaab siphon over $100 million per year from the regional and global financial system.
The entities ensnared in this designation reveal the breadth of Al-Shabaab’s networks architecture. From the bustling streets of Nairobi, where public transport buses bear the insignia of Crowm Bus, to the corporate façades of Dubai-based Haleel Commodities L.L.C., the reach of Al-Shabaab’s financial networks is vast and diverse.
These businesses, along with their affiliates in Cyprus and Uganda, form the backbone of a sophisticated network that launders millions of dollars for Al-Shabaab, facilitating the group’s terror activities both within Somalia and beyond its borders.
The individuals implicated in this network are no mere financiers; they are architects of a system that leverages business operations across continents to funnel resources to Al-Shabaab.
Figures such as Faysal Yusuf Dini and Mohamed Jumale Ali Awale in Kenya, along with their counterparts in the UAE, Somalia, and Finland, embody the nexus between legitimate commerce and the dark world of terror financing.
Through companies such as Crown Bus Services and investment projects that masquerade as benign commercial ventures, these individuals orchestrate a complex ballet of funds that ultimately empower Al-Shabaab’s lethal agenda.
This latest blow by the OFAC, part of a broader strategy to support the Somali government’s economic offensive against Al-Shabaab, represents a pivotal moment in the global fight against terrorism.
By disrupting Al-Shabaab’s financial networks, the Treasury aims not only to curtail the group’s operational capabilities but also to signal to potential enablers the grave consequences of aiding and abetting terrorism.
The message appears clear: the international community will not stand idle while businesses and individuals exploit the global financial system to support terror.
Businesses exposed for financing Al-Shabaab
The OFAC has targeted several entities across the globe for their involvement in supporting the terrorist organization Al-Shabaab, in accordance with Executive Order (E.O.) 13224, as amended.
Haleel Commodities L.L.C., based in the UAE, has been identified for its expanding role in providing financial, material, or technological support to Al-Shabaab, leading to a block on its property and interests.
Further extending this crackdown, Haleel Finance LTD, Haleel Holdings, and Haleel LTD, all based in Cyprus, have been sanctioned under E.O. 13224, as amended. These sanctions were imposed due to their ownership, control, or direction, whether directly or indirectly, by Haleel Commodities L.L.C., thus implicating them in the support network for Al-Shabaab.
In Kenya, Haleel Commodities Limited and Crown Bus Services have also been designated under E.O. 13224, as amended. This action was taken because they are owned, controlled, or directed, either directly or indirectly, by Mohamed Jumale Ali Awale, further tying them to the financial web supporting Al-Shabaab.
Additionally, Haleel Commodities LTD in Uganda has been subjected to sanctions under the same executive order for being owned, controlled, or directed, directly or indirectly, by Farhan Hussein Hayder.
This designation further illustrates the international scope of the financial networks supporting Al-Shabaab, with entities across multiple countries being implicated for their roles in aiding and abetting the terrorist group.
Read also: The nexus between the Israel-Hamas war and food security in Africa
What sanctions on businesses and individuals mean
By designating a list of individuals and entities linked to the financing of Al-Shabaab, OFAC has activated a comprehensive legal and financial mechanism designed to freeze and block any property and interests in the property of those named.
This action not only targets the direct assets of the designated persons and entities within the US but also extends to any entities owned, directly or indirectly, by more than 50 per cent by them, individually or in concert with other blocked persons.
The implications of today’s action are far-reaching. US persons and entities are now prohibited from engaging in any transactions that involve any property or interests in property of the designated or blocked persons.
This includes a broad spectrum of financial and commercial activities, encompasing transactions that may merely transit the US, underscoring the extensive reach of OFAC’s regulations.
Furthermore, the specter of secondary sanctions introduces a critical layer of deterrence. Financial institutions abroad face the risk of prohibitions or stringent restrictions on their US operations if they are found to have knowingly conducted or facilitated any significant transactions on behalf of entities designated as Specially Designated Global Terrorists.
This measure effectively extends the jurisdictional arm of OFAC’s sanctions, compelling global financial institutions to exercise heightened due diligence in their transactions to avoid entanglement in the financing web of terrorism.
The dual strategy of OFAC in wielding its power to both designate and potentially delist individuals and entities from the Specially Designated Nationals and Blocked Persons (SDN) List embodies the nuanced approach of the US towards sanctions.
The removal process from the SDN List, grounded in legal considerations, serves as a testament to the principle that the objective of sanctions is not punitive per se. Rather, it is a mechanism designed to engender a positive transformation in behavior.
The underlying philosophy is that sanctions are a means to an end, aiming to influence a change in conduct amongst those who have been led astray into the realms of terrorism and illicit finance.
In essence, the actions taken by OFAC underscore a commitment to safeguarding the integrity of the international financial system against the threats posed by terrorism.
Through a meticulously crafted regime of sanctions, the United States continues to lead a concerted effort to dismantle the financial networks that fuel terrorist activities, while simultaneously upholding principles of justice and the possibility of redemption for those who demonstrate a genuine shift towards lawful conduct.
