US sanctions target three Nigerian bureaux de change and alleged owner over claims of financing ISWAP activities.
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 further highlights growing counterterrorism cooperation between Washington and Abuja.
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, named Nigerian financier Mukhtar Adamu Muhammad as an alleged ISWAP financial facilitator accused of conducting money transfers and providing financial services on behalf of the extremist group.
Also designated were Nine to Nine Exchange Bureau de Change Limited, Manhattan Bureau de Change Limited and Generation Currency Bureau de Change Limited, which U.S. authorities alleged were owned, controlled or directed by Muhammad and used to move funds linked to ISIS activities.
The action forms part of a broader operation targeting three individuals and six entities operating across West Africa, Europe and the Middle East that Washington said helped ISIS raise, transfer and conceal funds to sustain its global operations.
In addition to the Nigerian network, the sanctions targeted France-based Miloud Abderrahmane and Syria-based Abdelhakim Boukich. U.S. authorities alleged that Abderrahmane carried out financial transactions for known ISIS affiliates and disseminated bomb-making instructions to supporters of the terrorist group, while Boukich allegedly used cryptocurrency channels to facilitate transfers for ISIS associates in several countries.
According to the U.S. Treasury, Muhammad had “materially assisted, sponsored, or provided financial, material, or technological support for, or goods and services to or in support of, ISIS-West Africa.”
Under the sanctions, all property and interests belonging to the designated persons and entities under U.S. jurisdiction have been blocked, while American citizens and companies are prohibited from conducting transactions with them.
The latest action comes amid ongoing efforts to disrupt financing channels used by terrorist groups operating in the Lake Chad Basin.
ISWAP emerged in 2016 following a split within Boko Haram and has since carried out attacks on military formations, communities and humanitarian workers across Nigeria’s North-East and neighbouring countries.
Security experts have repeatedly warned that terrorist groups increasingly rely on informal remittance systems, cash couriers, bureaux de change and cryptocurrencies to evade sanctions and sustain their operations.
The United States has intensified efforts in recent years to dismantle ISIS financing networks globally. In March 2022, OFAC sanctioned six individuals accused of raising and transferring funds to Boko Haram, including persons convicted in the United Arab Emirates for facilitating transfers to support terrorist activities in Nigeria.
Nigeria has also strengthened domestic counterterrorism financing measures. In 2022, the Federal High Court ordered the freezing of bank accounts and financial assets linked to individuals and entities suspected of financing terrorism following recommendations by the Nigeria Sanctions Committee.
The sanctions come amid deepening security cooperation between Nigeria and the United States, including intelligence sharing, counterterrorism training and joint efforts aimed at degrading the operational capabilities of Boko Haram and ISWAP.
Analysts say the designation of three Nigerian bureaux de change in a global terrorism-financing operation underscores the increasingly transnational nature of extremist financing networks and is likely to trigger greater scrutiny of financial institutions and money service businesses operating within Nigeria.
They argue that the development highlights the need for stronger financial intelligence systems, tighter regulation and enhanced international collaboration to prevent legitimate financial channels from being exploited by terrorist organisations.
