Tracking Terrorist Financing: A Series on Al-Shabaab
Group Profile
Over the last few months, we examined how Al-Shabaab raises funds, how it spends money, the methods it uses to move and store resources, how the group manages its finances, and most recently, how Al-Shabaab conceals the origins and movement of its funds. This is part of our work mapping how terrorist groups finance their activity, and we use our terrorist financing blueprint as an analytic framework, making this the most robust analysis of Al-Shabaab finance you’ll find anywhere.
Al-Shabaab generates significant revenue annually—estimated by the UN in 2025 to be between $100 and $200 million, primarily through taxation, control of trade routes, and smuggling activities.
While the group’s income has increased over time, its expenditures on salaries, military operations, and other activities have remained relatively stable.
Unlike many other groups, Al-Shabaab has not adopted cryptocurrency; instead, it relies on a combination of formal and informal financial systems to move funds as well as cash and other financial technologies like mobile money.
The group operates under a top-down leadership structure with formal institutions such as taxation and finance offices that help maintain consistent funding and limit risks from external pressures or internal corruption. Local fundraising is delegated to regional operatives, while senior leaders oversee broader financial planning.
Our latest article focuses on the methods Al-Shabaab uses to obscure its financial activities, including trade-based money laundering, using legitimate businesses and charities as fronts, and exploiting gender bises to further hide its transactions.
Thanks again for reading, subscribing, and sharing. We’ll keep bringing you in-depth coverage as we have on Al-Shabaab, Hamas, and white power extremist groups in Canada. Stay tuned for more. And if you want to learn how to do this type of analysis from top experts, check out our online course!
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