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    Home » First Terror Asset Freeze In South Africa
    ECONOMY

    First Terror Asset Freeze In South Africa

    February 17, 2025
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    Enoch Godongwana - Minister of Finance
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    South African prosecutors have taken a significant step by freezing the assets of a Somalian citizen linked to Al-Shabaab, marking the first such action under the country’s updated anti-terrorism laws. This move comes as South Africa races to address concerns raised by the Financial Action Task Force (FATF), a global watchdog that placed the country on its grey list in 2021 for failing to effectively combat money laundering and terror financing. The government has claimed progress, stating it has addressed many of the 40 recommendations from the FATF’s 2021 evaluation. However, six key issues remain, including the need to demonstrate a sustained increase in prosecuting complex financial crimes.

    The recent court order targets Abdirizak Mohamed Abdi Jimale, a Somalian national previously sentenced to 15 years in prison for funding terrorism, as well as others connected to him. The order was issued under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (Pocdatara), which was amended in 2022 to strengthen measures against terror financing. According to the Financial Intelligence Centre, this is the first freezing order under the updated legislation.

    The FATF has given South Africa until its next review to show improvement, and this action is seen as a demonstration of the country’s commitment to tackling terror financing. With the deadline looming, South Africa is under pressure to prove it can meet international standards and avoid further reputational damage. The case highlights the ongoing challenges the country faces in addressing financial crimes while balancing legal and constitutional obligations.

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