The US Treasury has announced that it is taking action against two individuals in South Africa who are allegedly associated with the expanded activities of the Islamic State of Iraq and Syria (Isis) on the African continent. The two, along with another alleged Isis agent based in Democratic Republic of the Congo (DRC), will be subjected to sanctions.
The two in South Africa are Abubakar Swalleh, described as a “South Africa- and Zambia-based Isis operative”, and Zayd Gangat, “a South Africa-based Isis facilitator and trainer”.
Swalleh is allegedly involved in the physical transfer of funds from South Africa to the DRC, while also facilitating the movement of Isis-affiliated individuals from Uganda to South Africa, and vice versa.
The US Treasury said Mohamed Ali Nkalubo, a DRC-based Isis commander, relied on Swalleh to move funds and recruit members for the DRC affiliate of Isis.
“Swalleh moved to South Africa under Nkalubo’s direction, where he has been involved in robberies and kidnap for ransom,” it said.
The third individual, based in the DRC, is Hamidah Nabagala. According to the US Treasury, she serves as an intermediary for Isis financial flows in central Africa and has been accused of funding the October 2021 Kampala bombing, which killed one and injured at least three others.
The sanctions against the three mean that their properties and any entities in which they have a direct or indirect stake of 50% or more will be frozen.
The US Treasury said, “These individuals serve as key financiers and trusted operatives, enabling the activities of Isis and its leaders across central, eastern and southern Africa. They also serve as critical links between far-flung Isis operations, including Isis affiliates in the Democratic Republic of the Congo (DRC), Mozambique, Somalia and Isis cells in South Africa, allowing Isis leadership to leverage each affiliate’s capabilities to conduct terrorist attacks that undermine peace and security in the region.”
The decision of the US Treasury to sanction the three coincided with the 20th meeting of the Counter Isis Finance Group on 23 July. This is a working group of the Global Coalition to Defeat Isis, which includes more than 80 countries and international organisations. South Africa is not a member of this coalition.
“Today’s action underscores the crucial work of the Counter Isis Finance Group and the importance of effective information-sharing among coalition countries to target Isis’ facilitation networks,” said Brian Nelson, the US undersecretary of the treasury for terrorism and financial intelligence.
“While we have made considerable progress over the nearly 10 years since the establishment of this working group, we must all remain vigilant because Isis continues to develop new financial methods.
“The United States, in close coordination with our key partners, remains committed to disrupting the key nodes that enable disparate Isis groups to work together and their ability to finance the group’s terrorist activities.”
South Africa’s Department of International Relations and Cooperation was unable to respond to Daily Maverick’s questions by the time of publication. Its response will be included in this report once received.
Terrorism financing risk
This is not the first time the US Treasury has announced the presence of Isis agents in South Africa. In November 2022, it stated that it had identified four members of an Isis cell operating in the country, as well as eight companies that were owned, controlled or directed by members of the group.
In June 2024, the Financial Intelligence Centre issued its second Terror Financing National Risk Assessment of South Africa. In contrast to the 2022 risk assessment, which found South Africa had a moderate terror financing risk, the updated report found that terror financing now presented a high level of risk to the country.
“From a global and regional perspective, during the period under assessment, the activities of the Islamic State (IS) and its affiliates have seen them become one of the deadliest global terror groups. South Africa’s current TF [terror financing] threat emanates predominantly from the IS, its affiliates, its supporters and its ideology,” said the assessment.
“Following the demise of the IS Caliphate in Syria and Iraq, there has been a decentralisation of activities and solicitation of support, including fund-raising, to regions that were not previously affected, including central and southern Africa. IS-linked terrorism theatres in the Democratic Republic of the Congo (DRC) and northern Mozambique are key areas of concern for South Africa’s national security, particularly as there are links to IS supporters in South Africa.”
The US Treasury’s sanctions against Swalleh, Nabagala and Gangat come at a time while South Africa is still on the Financial Action Task Force’s (FATF) greylist. It was added to the list in February 2023 as a country with strategic deficiencies in anti-money laundering and countering the financing of terrorism.
To be removed from the greylist, South Africa is expected to tackle 22 action items linked to eight areas of strategic deficiencies identified by the FATF, by no later than the end of January 2025.
At the latest round of FATF plenary meetings in June, the plenary adopted a report confirming that eight of the 22 action items had been addressed or largely addressed in accordance with the specified deadlines. DM