Terrorist Funding: NFIU exposes crowdfunding, betting platforms as revenue streams

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The Nigerian Financial Intelligence Unit (NFIU) has shed light on the evolving funding methods employed by terrorist organizations within the country. In a recent newsletter, the NFIU highlighted “crowdfunding, online transactions, and betting platforms” as concerning trends in terrorist financing.

The report cited a specific case involving the Indigenous People of Biafra (IPOB). The NFIU identified “a network of affiliates across 22 countries” allegedly raising funds for the group. This network reportedly utilizes crowdfunding platforms, with contributions disguised under narratives like “Monthly Dues” or “for ESN” (Eastern Security Network, IPOB’s armed wing). The NFIU further revealed that over $160,000 was funneled through this network to media outlets in Bulgaria, South Africa, and the UK.

“Nigeria, Africa’s most populous country, has faced significant challenges related to terrorism financing, particularly due to the activities of Boko Haram and other extremist groups operating within its borders,” the report reads.

“These groups have been involved in various forms of illicit financing to fund their operations, including attacks, recruitment, and procurement of weapons.

“The strategies employed by terrorist groups to generate and move funds within Nigeria’s financial landscape include, crowdfunding, the use of online platforms and the use of betting platforms amongst others.

“The diaspora affiliates of the IPOB group have spread over 22 (twenty-two) countries across the globe.

“Further analysis exposed 27 entities across the globe registered in the name of the group, the US and the UK had the highest number of registrations, having 7 and 6 registered entities respectively.”

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The NFIU said it was confirmed that one of the major sources of revenue for the group is crowdfunding by several individuals abroad, mostly Nigerians.

“The analysis further indicates that the group has several bank accounts in different countries where funds are being received from various contributors with the narrations ‘Monthly Dues, Services, and for ESN’ among others, then later disbursed,” the report further reads.

This disclosure raises concerns about the potential misuse of online platforms for terrorist financing. Crowdfunding platforms, designed to support legitimate causes, could be exploited to raise funds for nefarious activities. Similarly, online betting platforms, with their often opaque financial transactions, could be used to launder money or transfer funds to terrorist groups.

The NFIU’s report underscores the need for increased vigilance by financial institutions and online platforms. Implementing stricter Know Your Customer (KYC) protocols and flagging suspicious transactions are crucial steps in disrupting terrorist financing networks. Collaboration between government agencies, financial institutions, and online platforms is essential to tackle this evolving threat.

The report also highlights the international dimension of terrorist financing. The NFIU’s identification of a network spanning 22 countries emphasizes the need for international cooperation in combating this global issue. Sharing intelligence and implementing coordinated financial sanctions are vital measures to cripple terrorist funding channels.