Terrorist groups continue to carryout operations and thrive through financial support from supporters, sympathizers besides finances they collect through illegal dealings. Terrorists need money for their assets, like housing and weapons; as well as for training, logistics, travel and execution of their attacks.
Thus, monitoring of the transfer of funds by imposing on stringent laws and besides disrupting the flows of these finances are key steps towards effectively combating terrorism. This in turn will help prevent terror attacks by interrupting the financial and material support, but the funds trail and transactions can also help provide valuable information for investigations and surveillance.
The countering channels of terrorism financing is a vital part of the global fight against terror and jihadist organization. Terrorists and terror organizations persist on raising money for terrorism and as such countries are encouraged to develop actionable policies aimed to avert terror financing and as part of global consensus to work in cohesion. Terror attacks and activities are a threat to every country and continent and their objective is to disturb peace and harmony in communities, as well as to disrupt the economy and growth trajectory.
Somalia which has struggled with Al-Shabaab combatants for close to two decades has no option but to device ways counter the group’s financing. In the recent strategy aim at cutting down flow of finances to the Al-Qaeda affiliated group, Somali government is stemming down accounts conveying finances to the extremist group.
The Federal Government of Somalia is in the process of blocking Al-Shabaab’s financial bank accounts in Somalia, both through remittance companies and national banks. There has been a similar crackdown on the suspected financiers and money launderers of the groups, especially in the UK and US where the governments have adopted strict money-laundering laws making it difficult for banks to deal with them.
Somali government is also aided by tons of tips received its citizens regarding finance transfers to Al-Shabaab. The government is keen to suffocate the organization’s financial resources in an effort to halt group’s capability of carrying out its operations.
In the past few weeks, Somali government has been on the offensive, warning its citizens from supporting the extremist group financially. So far, this has seen many prominent business community members follow the government’s directions and stopped paying extortion fees to the extremist group.
The Somalia government has in recent days accelerated efforts aimed at sealing loopholes in the financial sector often exploited by the extremist group, Al-Shabaab which is fighting to topple the Government. The government has provided the necessary tools to detect and disrupt patterns of financing associated with Al-Qaeda and global terrorist networks. This includes the strengthening of institutions like the Financial Reporting Center (FRC) in Somalia which regulates and is set to report on any suspicious money circulating.
Terrorists and terror organizations are increasingly using multiple and innovative methods to raise and launder their funds. The revenue streams and geographies are getting more diverse. This makes it critical for financial institutions, regulated individuals like lawyers, and businesses like money remittance services; to be vigilant. Detection and timely reporting of red flags can help avert terror attacks and counter terrorist financing.
