US Sanctions Three Nigerian Bureaux De Change Over Alleged ISWAP Funding Links

The United States has imposed terrorism-related sanctions on three Nigerian bureaux de change and their alleged owner over accusations of financing the Islamic State West Africa Province (ISWAP), in a move that underscores growing international efforts to disrupt terrorist funding networks.

The sanctions, announced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the U.S. Department of State, identified Nigerian financier Mukhtar Adamu Muhammad as an alleged ISWAP financial facilitator accused of transferring funds and providing financial services on behalf of the extremist group.

Also sanctioned were Nine to Nine Exchange Bureau de Change Limited, Manhattan Bureau de Change Limited and Generation Currency Bureau de Change Limited. U.S. authorities alleged that the companies were owned, controlled or directed by Muhammad and were used to move funds linked to ISIS operations.

The designations form part of a wider operation targeting three individuals and six entities across West Africa, Europe and the Middle East that Washington says helped ISIS raise, transfer and conceal funds used to sustain its activities.

In addition to the Nigerian-linked entities, the sanctions targeted France-based Miloud Abderrahmane and Syria-based Abdelhakim Boukich. U.S. authorities alleged that Abderrahmane conducted financial transactions for ISIS affiliates and distributed bomb-making instructions to supporters, while Boukich allegedly facilitated cryptocurrency transfers for ISIS associates in multiple countries.

According to the U.S. Treasury Department, Muhammad had “materially assisted, sponsored, or provided financial, material, or technological support” to ISWAP.

Under the sanctions, all property and interests belonging to the designated individuals and entities within U.S. jurisdiction have been blocked. American citizens and companies are also prohibited from engaging in transactions with them.

The latest action comes amid sustained efforts to dismantle financial networks supporting terrorist organisations operating in the Lake Chad Basin.

ISWAP emerged in 2016 following a split within Boko Haram and has since carried out attacks on military installations, civilian communities and humanitarian workers across Nigeria’s North-East and neighbouring countries.

Security experts have repeatedly warned that extremist groups increasingly rely on informal remittance systems, cash couriers, bureaux de change and cryptocurrencies to evade sanctions and finance their activities.

The United States has stepped up efforts to target ISIS financing networks globally. In 2022, OFAC sanctioned several individuals accused of facilitating financial transfers to Boko Haram, including persons convicted in the United Arab Emirates for supporting terrorist operations in Nigeria.

Nigeria has also strengthened measures aimed at combating terrorism financing. In 2022, the Federal High Court ordered the freezing of accounts and assets linked to individuals and organisations suspected of financing terrorism following recommendations from the Nigeria Sanctions Committee.

The sanctions come as security cooperation between Nigeria and the United States continues to deepen through intelligence sharing, counterterrorism training and joint efforts to combat Boko Haram and ISWAP.

Analysts say the designation of three Nigerian bureaux de change in a global counterterrorism operation highlights the increasingly international nature of extremist financing networks and may lead to greater scrutiny of financial institutions and money service businesses operating in Nigeria.