The Nigerian Financial Intelligence Unit (NFIU) has unveiled the financing of terrorist organizations, including the Indigenous People of Biafra (IPOB), through crowdfunding, betting platforms, and online transfers.

This revelation is contained in a recent newsletter published by the NFIU’s Counter Financing of Terrorism Department.

The NFIU identified a vast network of IPOB affiliates spread across 22 countries.

These affiliates, primarily Nigerians residing abroad, have registered at least 27 entities under the IPOB name, with the US and UK leading the pack at 7 and 6 registrations respectively.

The newsletter said NFIU analysis further exposed a concerning financial structure. IPOB maintains bank accounts internationally, receiving funds from various sources disguised as “Monthly Dues, Services and for ESN” (Eastern Security Network, IPOB’s armed wing). These funds are then disbursed to finance their operations.

The report highlights crowdfunding as a major source of income for IPOB, with over $160,000 being funnelled to transmission, media, and broadcasting companies in Bulgaria, South Africa, and the UK.

The NFIU analysis identified, “the leader’s addresses and mobile numbers abroad, along with information on 53 other individuals associated with the group. These findings have been forwarded to law enforcement agencies for further investigation.”

There are broader terrorist financing tactics beyond IPOB. One example involves a betting platform, simply identified as ‘XC’, which filed a Suspicious Transaction Report (STR) on a customer suspected of money laundering.

“This 24-year-old from Nigeria’s North-Central region received over N350,000 in his betting wallet, believed to be ransom money from a kidnapping.”

Another case exposed a terrorist attempting to evade detection. This individual made structured cash withdrawals from different ATMs, purchased flight tickets to high-risk areas using credit cards (transactions declined due to exceeding limits), and then used alternative methods to travel.

“The terrorist then attempted suspicious transfers exceeding €1,000 to a local charity with potential links to terrorism. These transactions, along with others for luxury goods and escort services, raised red flags” the newsletter stated.

The NFIU report identified key indicators of terrorist financing and urged law enforcement agencies to investigate: transactions by individuals linked to known terrorists or financiers; unauthorized tax collection or forced donations in terrorism-prone areas; and Bureau de Change operators facilitating transfers within suspected networks.

Other red flags are multiple cash deposits into bank accounts to avoid scrutiny; POS operators receiving large deposits followed by cash withdrawals for unidentified individuals; money transfers from Nigeria to high-risk countries for suspicious purchases; recruitment of individuals to open multiple bank accounts; and financial transfers to charities linked to terrorism.

Terrorist financing the NFIU said remains a critical security concern in Nigeria. The report underscores the need for a multi-pronged approach to addressing the root causes of terrorism; strengthening border controls; enhancing transparency and accountability in financial transactions and fostering international cooperation to combat terrorism financing.

By taking these steps, the NFIU said it believes Nigeria can disrupt the flow of funds to terror groups like IPOB and Boko Haram, promoting peace and stability within the nation and the wider region. (The Nation)

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