US Treasury Cracks Down on Alleged ISIS Operations in South Africa with New Sanctions

The United States Treasury has taken decisive action against individuals allegedly linked to ISIS activities in South Africa, demonstrating a firm stance against the terrorist organization's expansion on the continent. The sanctions, announced recently, specifically target two South African residents and another operative based in the Democratic Republic of the Congo (DRC).

Identified as key figures within ISIS's network, Abubakar Swalleh and Zayd Gangat are accused of facilitating operations in South Africa, with Swalleh orchestrating funds transfers to the DRC and aiding the movement of ISIS affiliates. Moreover, Swalleh is implicated in conducting robberies and kidnappings for ransom under the direction of DRC-based ISIS member Mohamed Ali Nkalubo.

In addition to Swalleh and Gangat, the Treasury's sanctions encompass DRC resident Hamidah Nabagala, alleged to have facilitated ISIS's financial flows in central Africa and being linked to financing the October 2021 bombing in Kampala.

These sanctions entail the freezing of any property within U.S. jurisdiction belonging to the accused and prohibit transactions with US persons. The implications are significant, potentially severing critical financial and support channels for ISIS within and beyond Africa's borders.

The timing of this action coincides with the broader initiatives of the Counter ISIS Finance Group's 20th meeting—a faction of the international coalition committed to defeating ISIS. The group, which comprises over 80 countries and institutions, exchanges information to target ISIS financing methods. Notably, South Africa is not a member of this coalition, which speaks to the complexity of international efforts to combat terrorism.

In defending the sanctions, Brian Nelson, US Undersecretary of the Treasury for Terrorism and Financial Intelligence, highlighted the ongoing sophistication of ISIS's financial strategies. His remarks emphasized the continued vigilance and coordination required to disrupt the nexus of ISIS affiliates—which these sanctions aim to address.

Within the context of South African security, these measures arrive as the country contends with findings from the Financial Intelligence Centre. The latest Terror Financing National Risk Assessment indicates a transition from a moderate to a high terror financing risk, with ISIS's influence deemed a grave concern for national security.

Echoing these sentiments is the ongoing threat to regions like the DRC and northern Mozambique, which have become theaters for ISIS-linked terrorist activities. Such developments underline the importance of the Treasury's efforts to curb the group's support systems, particularly as South Africa grapples with its status on the Financial Action Task Force’s (FATF) greylist for deficiencies in anti-money laundering and counter-terrorism financing.

South Africa has been given until the end of January 2025 to address the strategic deficiencies highlighted by the FATF. With eight of 22 action items reportedly tackled, the country progresses toward being delisted from the greylist. The US Treasury's actions against these three individuals mark a critical step in this ongoing battle against terror financing and the destabilization it brings to national and regional security.