US sanctions Lagos-based BDC operator, firms over alleged terrorism financing
The United States government has sanctioned Mukhtar Muhammad, a Lagos-based Bureau De Change (BDC) operator, and three firms allegedly controlled by him over claims that they served as financial conduits for the West Africa franchise of Islamic State of Iraq and Syria (ISIS).
In a statement issued on Monday, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) accused Mr Muhammad, also known as “Mukhtar Adamu Muhammad”, of facilitating financial transactions and money transfers on behalf of ISIS-West Africa, popularly known as Islamic State West Africa Province (ISWAP).
ISWAP, a second breakaway faction of Boko Haram, has been responsible for years of deadly attacks across Nigeria’s North-east and the Lake Chad region.
Also sanctioned were Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited, which OFAC alleged are owned, controlled or directed by Mr Muhammad and were used to move funds for the terrorist organisation.
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According to OFAC, Mr Muhammad operated from Lagos and played a significant role in ISWAP’s financial network by transferring money through the three BDC firms, enabling the movement of funds that supported the group’s operations.
This is the first time Mr Muhammad’s name and that of the firms linked to him would publicly appear on the list of suspected terrorism financiers. The Nigerian government has consistently updated the list, imposing sanctions such as an immediate identification and freezing of assets belonging to the designated persons among others.
Authorities have identified terrorism financing as an enabler of terror attacks. Many BDC operators and their associates have been arrested. During the administration of former President Muhammadu Buhari, 96 suspects and their 424 associates were arrested and detained for months without trial. In addition, over 100 companies and 33 BDC firms were linked to terrorism financing.
Other individuals, firms sanctioned
Besides the Nigerian designations, the US Treasury sanctioned Miloud Abderrahmane, described as a France-based ISIS financial facilitator, and Abdelhakim Boukich, described as a Syria-based extremist financial facilitator who owns and controls Bitcoin Xchange, a Syria-based money service business.
OFAC also designated Mohamad Alhmidan, who had previously been sanctioned in 2016. According to the OFAC, he owns and controls Spider Gayrimenkul Ve Genel Ticaret Limited Sirketi, a Türkiye-based money service business.
In addition, OFAC sanctioned Bitcoin Xchange, Spider Gayrimenkul Ve Genel Ticaret Limited Sirketi, and Alkaram Danismanlik Gayrimenkul Ic Ve Dis Genel Ticaret Limited Sirketi, alleging that the entities had materially assisted, sponsored or provided financial, material or technological support for ISIS or acted on behalf of designated ISIS financial facilitators.
OFAC alleged that Boukich and Bitcoin Xchange facilitated money transfers on behalf of ISIS associates from several countries, including Norway, Belgium, the Netherlands, South Africa and the United States. It also said Spider originated as a hawala operating in Syria and was used to move funds from areas once controlled by ISIS to other locations.
Hawala is an informal money transfer system operating outside the conventional banking network
Implications
The sanctions mean that all property and interests in property belonging to the designated individuals and entities that are within the United States or under the control of US persons are blocked. Also, US citizens and businesses are also generally prohibited from conducting transactions with them unless authorised by OFAC.
OFAC further warned that foreign financial institutions and other persons that knowingly facilitate significant transactions or provide material support to the sanctioned individuals or entities could themselves face US sanctions.
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