Moving Money for Al-Shabaab

Group Profile

While many terrorist organizations prefer cash due to its anonymity and ease of movement, the use of cryptocurrency has also been on the rise in recent years. Al-Shabaab, however, stands out for its significant reliance on mobile money to conduct transactions. In addition to mobile money, the group also still uses cash, formal financial institutions, Hawala, and money service businesses to support its operations.¹

In fact, Al Shabaab is one of the only terrorist groups around the world that has not used cryptocurrency to move money. This is likely due to a lack of counterterrorist financing pressure that has not forced the group to adapt to cryptocurrency and the existence of other financial technologies that can facilitate payments for the group.

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Mobile Money

Mobile money transfers using US dollars have become a standard for conducting everyday transactions in Somalia. In 2023, the Africa Center for Strategic Studies highlighted that there were an estimated 155 million mobile money transactions in the country in a month, worth approximately $2.7 billion.

Al-Shabaab has capitalized on the adoption of the technology. One of the group’s financiers, Jim'ale Ali Ahmed Nur, allegedly established a mobile money transfer business, ZAAD. He specifically made a deal with Al-Shabaab to remove identification requirements for transactions. This lack of oversight made the transfers significantly more anonymous and harder to trace.

Companies that refuse to cooperate with Al-Shabaab have been coerced to do so. The group has banned certain mobile banking services and threatened national telecommunications companies operating in areas under its control. These actions are designed to help the group avoid detection, preserve the flow of funds, and maintain an economy that enables Al-Shabaab to continue extorting individuals and businesses.