US Targets Lagos BDC Operator and Firms for Terrorism Financing

The United States government has put sanctions on Mukhtar Muhammad, a Bureau De Change (BDC) operator based in Lagos. The US claims he and three firms he controls helped fund the West Africa branch of the Islamic State of Iraq and Syria (ISIS).

On Monday, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) stated that Mr Muhammad, also known as “Mukhtar Adamu Muhammad,” facilitated money transfers and transactions for ISIS-West Africa, which is commonly known as the Islamic State West Africa Province (ISWAP).

ISWAP is a breakaway faction of Boko Haram. This group has carried out many deadly attacks in Nigeria’s North-east and the Lake Chad area for several years.

The firms sanctioned include Nine To Nine Exchange Bureau De Change Limited, Generation Currency Bureau De Change Limited, and Manhattan Bureau De Change Limited. OFAC claims these firms are owned or controlled by Mr Muhammad and were used to transfer funds to the terrorist group.

According to OFAC, Mr Muhammad operated from Lagos and played a key role in ISWAP’s financial activities by moving money through these three BDCs. This helped support the group's operations.

This is the first time Mr Muhammad and the firms connected to him have appeared on a public list of suspected terrorism financiers. The Nigerian government regularly updates its list and takes actions like freezing the assets of those designated.

Authorities see terrorism financing as a way to enable terror attacks. Many BDC operators and their associates have been arrested. During former President Muhammadu Buhari's time in office, 96 suspects and 424 of their associates were arrested and held for months without trial. Additionally, over 100 companies and 33 BDCs were linked to financing terrorism.

The sanctions mean all properties and interests of the targeted individuals and firms in the US or controlled by US persons are blocked. US citizens and businesses are also generally not allowed to conduct transactions with them unless permitted by OFAC.

OFAC has also warned that foreign financial institutions and other people who knowingly help these sanctioned individuals or firms could face US sanctions themselves.