US goes for Al-Shabaab financial channels, gives $10 million reward

NAIROBI, Kenya - The United States has shifted focus to the Al-Shabaab financial channels, which have sustained the activities of the terror group for over 15 years, even amid serious mobilization against the militants in Somalia, as the national army seeks to liberate strategic towns and villages.

State Department offered a reward of up to $10 million for information leading to "disruption of the financial mechanisms" of the terrorist organization al-Shabaab. Al-Shabaab’s financial operations and facilitation networks, the department said, help sustain its operations and fund its terrorist attacks that have resulted in thousands of deaths of innocent civilians and security forces in Somalia and neighboring countries.

Previously, the department had concentrated on targeting senior Al-Shabaab militants with financiers given little attention. A report published by the United Nations independent experts noted that the group runs a budget of up to $100 million annually, with $24 million being diverted to the purchase of weapons.

The State Department says Al-Shabaab uses traditional methods to fund its activities, including bribery, extortion, hawala money transfers, kidnappings for ransom, money laundering, and personal couriers, but it has also developed its own sources of funding and become increasingly independent from external sponsorship.

"Its newest sources of funding include extortion of elders, businesspeople, and farmers; exploitation of the used automobile trade to its benefit; mobile money transfers, and theft of pastoralists’ livestock," the latest statement which comes amid heightened Al-Shabaab crackdown read.

Through territorial expansion, al-Shabaab also engages in illicit activities, such as illegal mining and trade/smuggling of commodities such as charcoal, heroin [which it resells to criminal groups], ivory, livestock, and sugar. Al-Shabaab also imposes taxes on individuals, businesses, pirates, etc., and collects tolls, fees, and taxes on agricultural produce and land, the statement further read.

Under the new structure, the Department of State will be offering rewards for information that can lead to the identification and disruption of significant sources of revenue for al-Shabaab [e.g., extortion and taxation, smuggling of contraband, and weapons and drug trade].

Also, the department will consider information that can lead to the identification and disruption of exploitation of local natural resources by al-Shabaab [e.g., logging, mining, and smuggling] and financial contributions by donors and financial facilitators to al-Shabaab.

Further, the US is rewarding individuals who can help with the identification of significant transactions by financial institutions and use of money service providers to transfer funds and access the international financial system on al-Shabaab’s behalf and businesses or investments owned or controlled by al-Shabaab or its financiers.

The department will consider pursuing international activity by front companies tied to al-Shabaab, engaged in financial transactions on its behalf, and criminal schemes involving al-Shabaab members and supporters, who are financially benefiting the organization.

On the radar for punishment as well are illicit financial schemes of al-Shabaab [e.g., money laundering], and transfers of funding and material by al-Shabaab to its terrorist and militia proxies and partners, in what if achieved, would significantly diminish the influence of the group which controls large swathes of rural central and southern Somalia.

The US has been closely working with the Somali National Army and other partners forces in neutralizing Al-Shabaab, a group that was designated as a terror organization in 2018, following several activities leading to the death of innocent civilians and members of security forces.

GAROWE ONLINE