Somali Islamist insurgents pile up cash through fear, says UN report

NAIROBI - Somalia’s Islamist insurgents are moving millions of dollars through the formal bank system and appear to be investing in businesses and real estate, according to a United Nations report offering a rare glimpse into their finances.

Al-Shabaab has for years been battling Somalia’s internationally-backed government to impose strict Islamic law in the anarchic Horn of Africa nation.

“Al-Shabaab remains in a strong financial position and is generating a significant budgetary surplus, some of which is invested in property purchases and businesses in Mogadishu,” said the report by the UN sanctions panel on Somalia. The report by the group, which monitors compliance with an arms embargo on Somalia, is due to be published this week.

The al-Qaeda-linked

Somali militants carry out frequent bombings and attacks at home and have also killed hundreds of civilians in Kenya and Uganda. Earlier this year, al-Shabaab killed three Americans at a US military base in Kenya. The UN report included details on two bank accounts held at Salaam Somali Bank, founded in

2009 as part of the Hormuud group of companies, raising questions about Somalia’s capacity to enforce a 2016 law aimed at curbing terrorist financing. The bank did not respond to requests for comment.

Somalia’s Financial Reporting Centre, which oversees compliance laws against money laundering and terror financing, said it is investigating the allegations against Salaam.

Meanwhile, at least 13 Somali troops have been killed by the al-Shabaab armed group near the district of Afgoye, northwest of the capital, Mogadishu, a military official has said.

– REUTERS/ALJAZEERA.