Posts Tagged ‘Somalia’

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Salaam African Bank mum on pirates’ accounts

March 30, 2015

The chairman of Salaam African Bank has declined to cooperate with UN investigators about several accounts allegedly held at the bank by piracy financiers. One of those financiers may also be a family friend of a formerly sanctioned business partner of Osama Bin Laden.

The UN Monitoring Group on Somalia and Eritrea named two pirate leaders, Mohamed Abdi Hassan “Afweyne” and a pirate negotiator named “Ali,” who have deposited money with Salaam, in its October 2014 report.

Afweyne is a pirate hijacker currently awaiting trial in Belgium who reportedly maintains a nearly $1 million account with Salaam Financial Services Bank—a Salaam African Bank affiliate—in Hargeisa, Somalia. Afweyne also holds two accounts with Salaam Somali Bank in Mogadishu, which is also affiliated with Salaam African Bank.

Ali, who has negotiated ransom payments on behalf of Somali pirates in several hijacking cases, is a friend and business partner of the alleged first cousin and son-in-law of Ali Ahmed Nur Jim’ale. Jim’ale was the owner of al-Barakaat, a bank which was until recently sanctioned by the United Nations. The 9/11 Commission said that U.S. intelligence agents believed Osama Bin Laden was Jim’ale’s silent partner in the creation of al-Barakaat.

The association between Ali and Jim’ale’s family, if verified, would serve as evidence of the long-speculated but unproved financial relationship between Somali pirates and Al Qaeda.

In response to the Monitoring Group’s questions about Afewyne and Ali, Salaam African Bank’s chairman, Ismail Egal, “indicated that the bank had no desire” to assist in the investigation. The central bank of Djibouti was also uncooperative in confirming the information gathered by the Monitoring Group.

The Monitoring Group has called for international sanctions against Somali pirate leadership, but those sanctions have not been levied. This state of affairs “has allowed pirate leaders, investors and facilitators, not only to invest their illegally acquired funds into other business ventures, but also to keep those funds in bank accounts, transfer them to business partners, launder them overseas or support family and friends in the diaspora,” according to the report.

Hat tip to Ayaamo News.

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10 red flags over Dahabshiil

February 28, 2015

Does the international remittance company Dahabshiil finance terrorism? Are its anti-money laundering and counter-terror finance programs adequate? Here are 10 warning signs to keep in mind:

  1. Mohammed Sulaymon Barre, a Somali citizen and former Guantanamo Bay detainee, was alleged by U.S. officials to have worked in Osama bin Laden’s compound in Sudan in 1994 and 1995. He later worked at a Dahabshiil office in Pakistan before his detention. During a 2005 hearing at Guantanamo, a military judge told Barre, “I am convinced that your branch of the Dahabshiil company was used to transfer money for terrorism.” (Source: Washington Post).
  2. In early 2011, Somali music star and future member of Somalia’s parliament, Saado Ali Warsame, released a protest song entitled, “Dhiigshiil ha dhigan” (which translates as “Don’t Deposit with Dahabshiil” or “Don’t send your money through Dahabshiil”). The song called Dahabshiil a “blood-smelter,” “the enemy of Somalia,” and implored Somalis: “do not deposit your money” with Dahabshiil. (Source: Money Jihad)
  3. In late 2011, the Bell Pottinger public relations and lobbying firm cited its success in “manipulating Google rankings” on behalf of its client Dahabshiil to ensure that the Guantanamo Bay detainee story about Mohammed Sulaymon Barre didn’t appear on the first 10 pages of Google search results. (Source: The Independent)
  4. Amina Farah Ali and Hawo Mohamed Hassan were convicted in October 2011 on federal charges of providing material support to the terrorist group al-Shabaab. The indictment had alleged that “Ali and others acting at her direction transmitted funds to al-Shabaab through the hawala money remittance system” using Dahabshiil and other remitters. (Source: U.S. v. Amina Farah Ali)
  5. In December 2011, Minneapolis-based Franklin Bank and St. Paul-based Sunrise Community Banks ceased doing business with Somali hawala dealers and money transfer organizations including Dahabshiil over “concerns that the accounts put them at risk of violating federal rules designed to halt terror financing.” (Source: Minneapolis Star Tribune).
  6. The British banking giant Barclays announced its intentions to sever ties with Dahabshiil in 2013 over regulatory compliance and terror financing concerns. (Source: Associated Press.) Litigation ensued which delayed Barclays’s plans, but a deal to end their business relationship was finally reached in April 2014. (Source: Financial Times)
  7. In April 2014, U.S. Bancorp backed out of a long-planned deal with Dahabshiil after “an independent review of Dahabshiil and the inherent risk of doing business in Somalia.” (Source: American Banker)
  8. Danish regulators found Dahabshiil offices in Copenhagen, Kolding, Aalborg, and Aarhus to be “completely inadequate” in their compliance with anti-money laundering and terrorist financing laws in Denmark, and referred the case to police for further investigation in July 2014. (Source: Danish Financial Supervisory Authority)
  9. Somali news outlets reported in July 2014 that several Dahabshiil offices in Middle and Lower Juba were ordered by al-Shabaab to be closed after failing to make payments to al-Shabaab on time. (Sources: Radio Kulmiye, Shiniile News, and Dayniile)
  10. Merchants Bank of California announced this month that it is ending its Somali remittance services including Dahabshiil accounts amidst “concerns that some money could be making its way to Islamic militants.” (Source: KARE 11)

Dahabshiil denies all allegations of financing terrorism.

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The money behind the jihad: suggested reading

December 18, 2014
  • During Operation Protective Edge, Israel Defense Forces seized kalashnikovs, electroshock weapons, uzis, and RPG’s among other goodies smuggled through tunnels by Hamas and Palestinian Islamic Jihadmore>>
  • The Union of Arab Banks is concerned that U.S. courts will allow even more cases to be brought against them for facilitating terrorism… more>>
  • A human rights lawyer decries the Salafi business cartels that have taken over Somalia… more>>
  • Congressman wants answers on whether CENTCOM attempted to make a payment for the release of Bowe Bergdahl from its $5 million fund … more>>
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Claim: Somali remittance firm bought bombs, suicide vests (updated)

December 5, 2014

(Updated 12/9/12 to include a response from Dahabshiil)

The Somali news outlet Waagacusub claims that a shipment of bombs, suicide vests, military uniforms and combat boots to the financial services company Dahabshiil has been intercepted. The container was transported by a United Arab Emirates vessel, but Emirati security forces say the container originated in China. The shipment was allegedly intended for delivery to Dahabshiil’s office in Mogadishu, which Dahabshiil denies.  Suicide bomber attacks by al-Shabaab fighters are common in and around Mogadishu.

The allegations against the notorious remittance company could not be independently substantiated by Money Jihad. However, there are some indirect suggestions of potential Dahabshiil involvement in brokering illegal arms deals. In 2013, Inter Press Service reported that weapons are being trafficked in a similar manner as hawala—in other words, arms are being transferred to different owners without being physically moved. The IPS report featured a photograph of Dahabshiil’s Mogadishu office. Waagacusub has previously videotaped witnesses who said that Dahabshiil is involved in the procurement of weapons and vehicles for use in clan warfare. UN investigators recently disclosed that as many as 70 to 80 percent of weapons shipped to Somalia intended for use by the government have been “diverted” for resale in the public marketplace.

Dahabshiil denies involvement in UAE shipment, telling Money Jihad that “Dahabshiil strongly refutes the allegations that it was in any way involved in this incident. Dahabshiil has no involvement whatsoever with the weapons trade.”

Dahabshiil routinely makes payments to the terrorist group al-Shabaab according to reports from multiple Somali news sources, although Dahabshiil denies the charge. Its offices have previously been closed when Dahabshiil has failed to pay or delayed payment. The British bank Barclays is severing ties with Dahabshiil over concerns about money laundering and terrorist financing. Dahabshiil offices in Denmark were recently referred to the police after financial regulators there determined that the remittance company’s offices compliance programs were “completely inadequate.” At least one Dahabshiil branch was found by a Guantanamo military judge to have financed al-Shabaab.

© Text copyrighted 2014 by Money Jihad. Blog URL: moneyjihad.wordpress.com. Any unauthorized reproduction, duplication, or retransmission of this post without the express written consent from Money Jihad is strictly prohibited. Excerpts and links may be used provided that full and clear credit is given to Money Jihad with appropriate and specific direction to the original content.

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UAE: ISIS licking chops over vital sea channels

November 20, 2014

Threats to key choke points like the Strait of Hormuz from a joint venture between al-Shabaab and the Islamic State of Iraq and Syria (ISIS) are possible according to the foreign minister of the United Arab Emirates.  The UAE foreign minister’s comments are being construed somewhat narrowly as a warning that ISIS could engage in piracy with al-Shabaab. But that overlooks the wider influence that al-Shabaab wields over shipping, controlling Somali ports and exacting taxes on illegal charcoal exports to the Arabian peninsula.  In other words, al-Shabaab could help ISIS undermine freedom of the seas not just through piracy, but through smuggling and illicit business relationships with Gulf states.  The foreign minister’s warnings should be read within that wider context.

From DefenseNews (h/t El Grillo):

…On Oct. 29, UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahyan raised the piracy concerns, calling for the international community to be more vigilant regarding new threats at the fourth UAE Counter Piracy Conference in Dubai.

“As groups like Daesh [Islamic State] develop ties to criminal networks and arms networks like al-Shabab, it is essential that we prevent them from expanding their operations into the sea and threaten vital channels such as the Strait of Hormuz, the Red Sea, Bab al Mandab and the Gulf of Aden,” he said.

“The nexus of criminal groups, violent extremists, and weak states will require a coordinated response from governments and the private sector,” he said. “We have to ask ourselves these questions and prepare ourselves in case a union of [the Islamic State group] and al-Shabab occurs”…

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Somalia interdicts shipload of bombs and guns

November 16, 2014

First time for everything. Thanks to a UN resolution authorizing searches and seizures of ships by Somali security forces, one fewer Gulf-backed arms shipment is making its way into the arsenals of al-Shabaab. The resolution will also make it somewhat harder for al-Shabaab to profit from the illegal export of charcoal from Somalia into the ports of the Arabian peninsula.  From Sabahi Online (hat tip to Chris for sending this in):

Tightened security off Somalia’s coast aims to bankrupt al-Shabaab

The recent seizure of an illegal arms shipment off the Somali coast signals the government’s increasing ability to manage maritime security, analysts say, but it also highlights the need for more effective ways to degrade al-Shabaab’s access to weapons and money.

Somali security forces seized a shipping container filled with weapons and explosives October 28th, just days after the United Nations Security Council passed a resolution authorising the inspection and seizure of vessels in Somali waters suspected of carrying prohibited items.

Under the resolution, states and regional partners can search ships in Somalia’s territorial waters and on the high seas when there are “reasonable grounds” to suspect they are transporting illegal arms or charcoal, a key source of funding for al-Shabaab militants.

Despite an international ban on charcoal exports, the illegal trade has increased, with al-Shabaab holding on to approximately one-third of the $250 million annual trade, according to a report by the United Nations Monitoring Group on Somalia and Eritrea released in June.

“Charcoal is giving Al-Shabaab a lifeline,” said British Ambassador to the United Nations Mark Lyall Grant after the resolution passed October 24th.

Grant said Somali President Hassan Sheikh Mohamud had written to the Security Council October 8th, requesting assistance. “Today we have responded to that call for help,” he said in a press statement, stressing that the fight against al-Shabaab was at the heart of the resolution.
Resolution provides welcomed support to Somali security agencies

Somalia’s security apparatus is not yet capable of monitoring and controlling all maritime traffic to the ports under its control and could use the help from its international partners, said retired Colonel Sharif Hussein Robow, a former intelligence officer during the Mohamed Siad Barre regime.

Robow praised the government for seizing the container of contraband weapons and explosives at Mogadishu Port last month, but said there are many more shipments carrying prohibited items that fall through the cracks.

“The entry of these types of weapons and everything else that is illegal in a country depends on the government’s capacity [to stop it],” he said.

Currently, security at Somalia’s ports is weak because personnel are not properly trained and officers lack motivation because they are not paid regularly and lack strong supervision, Robow said.

Nonetheless, the UN resolution will help Somalia’s international partners stop the flow of illegal weapons into Somali ports, he said. It can also help stop the export of charcoal, a key source of revenue for al-Shabaab.

“One of the ways [al-Shabaab] gets money includes collecting taxes from traders who bring charcoal from the forest,” he said. “The second way is they could actually own the charcoal that is being exported, and third, they extort money from the big businesses in the charcoal trade.”

Daud Abdi Daud, secretary general of Somali Media for Environment, Science, Health and Agriculture, a non-profit organisation that aims to expand and improve media coverage of key issues from climate change to civil insecurity, said he welcomed inspections carried out by international partners off the coast of Somalia.

“Taking such a step to stop Somali charcoal exports is a good thing because this issue poses a big problem for both the Somali people and the environment,” Daud told Sabahi. “Cutting [trees for] charcoal has resulted in desertification in Somalia and the migration of wildlife out of Somalia because the trees they would have sheltered under are being cut.”

“Cutting trees is also a big part of the widespread drought and famine in Somalia because deforestation leads to a lack of rainfall, which ultimately results in droughts,” he said.

“When the government took control of Barawe, it was a crippling loss for al-Shabaab’s finances because the millions of dollars al-Shabaab earned from charcoal exports came from charcoal that was exported from the Barawe port,” Daud said.

However in its October report, the UN Monitoring Group said more than one million bags of charcoal are still being shipped out of Kismayo Port each month, even though the Somali government resumed control of Kismayo in 2012…

And Kismayo is just one of several ports being used for illegal charcoal shipping.

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5-year anniversary of Money Jihad

October 12, 2014

Five years ago today, the first post of this blog was published.

Since then, Money Jihad has blown the lid off connections among Islamic charities including the Zakat Foundation and Muslim Hands, the close financial relationship between Islamic Relief USA and Islamic Relief Worldwide in Britain, and partnerships between Islamic Relief and the Turkish front charity IHH.

Money Jihad has also documented the relationships between sharia banks and terrorist financing—relationships which were previously only discernible through scattered evidence and rumors.

On top of that, this blog has exposed information that was known in Somalia and Bangladesh about terrorist financing in those countries that had never been reported before to Western readers. On several occasions, this blog has helped give voice to dissidents and expatriates from those and other nations who have shared their knowledge about financial mischief in their home countries with Money Jihad to reach a wider audience.

None of this would have been possible if it weren’t for some wonderful people and organizations. Special thanks to Shariah Finance Watch and Creeping Sharia blogs for putting Money Jihad on the map in the first place. Individual thanks go to the vice president at the Center for Security Policy Christopher Holton, human rights activist Puneet Madaan, and American Center for Democracy fellow Ilan Weinglass who have each done a great deal to expand the reach of this blog.

Without additional support and engagement by 1389 Blog, The Counter Jihad Report, EuropeNews, BlazingCatFur, and other counter-jihad blogs—all wonderful blogs in their own right—in addition to news sites Free Republic, American Thinker, FrontPage Mag, The Washington Free Beacon, The Washington Post, and International Business Times, this blog would never have reached the level of influence or readership that it currently enjoys.

Then there’s the vibrant community of readers, sources, jokers and curmudgeons on Twitter! This whole endeavor would be much quieter and boring without them. A special thanks goes out to all-star Twitter users Rushette, El Grillo, MeanKitteh, Sal, Michael, Jackie, Zac, Jack, and FRamabama for all the support and the wealth of information and insights they provide.

Twitter also allows Money Jihad to mutually follow and connect with noted leaders of the counter-jihad movement including author Tarek Fatah, Act for America organizer Brigitte Gabriel, former Navy officer Dr. Zuhdi Jasser, author Diana West, author Dr. Mark Walia, Gatestone Institute president Nina Rosenwald and terror analysts Patrick Poole and Ryan Mauro. TV stars Roseanne Barr and David Boreanaz have helped too (seriously); and prominent financial crimes experts including anti-money laundering reporter Colby Adams; finance and security analyst Tom Keatinge; anti-money laundering attorney Christine Duhaime; Wall Street Journal risk & compliance reporter Rachel Louise Ensign; terrorism and terror finance expert J.C. Brisard; author Jeffery Robinson; fellow financial crime bloggers Helen Gorman and Eric “Mr. Watchlist” Sohn; and a host of certified public accounts, trade and sanctions lawyers, certified fraud examiners, and certified anti-money laundering specialists.

Thanks also to Rachel Ehrenfeld, Robert Spencer, and Kenneth Rijock. The insights and expertise in their writings have helped shape the perspective of this blog.

Now, friends and readers, it’s time for a two-week break. Hasta luego!

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