First Court Order Issued to Combat Terrorist Financing
The Financial Intelligence Centre (FIC) has announced a major step in South Africa’s fight against terrorist financing. On 11 February 2025, the South Gauteng High Court issued the country’s first-ever freezing order under Section 23 of the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA Act), 2004. This order targets individuals and entities suspected of facilitating terrorist activities.
Why This Matters
Accountants and other financial professionals registered as accountable institutions are legally obligated to identify and report suspicious transactions under the Financial Intelligence Centre Act (FIC Act), 2001. The court order highlights the growing enforcement of anti-terrorism finance laws, reinforcing the need for strong compliance measures.
With this ruling, accountable institutions (such as banks, auditors, and financial service providers) must immediately freeze any assets belonging to the designated persons and report them under Section 28A of the FIC Act.
Who Is Affected?
The freezing order applies to the following individuals and entities who are suspected of committing, facilitating, or participating in terrorist activities, as defined by the POCDATARA Act:
Abdirizak Mohamed Abdi Jimale
Bashir Abdi Hassan
Almisbaax Pty Ltd (formerly Heeryo Trading Enterprise Pty Ltd, registered in South Africa)
Heeryo Trading Enterprise (registered in Somalia)
Key Takeaways
Accounting practices registered with the FIC as accountable institutions should ensure proper measures to strengthen compliance. The following must be noted:
Ensuring working Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to detect suspicious transactions.
Monitor and be alert to unusual transactions, complex corporate structures, or high-risk clients that could be linked to illicit activities.
If your firm holds assets linked to sanctioned individuals or entities, you must freeze them immediately and report them to the FIC.
This is the first freezing order under the updated POCDATARA Act, but more are likely to follow as authorities tighten regulations on illicit financial flows.
For more details, read the full court order here.
Stay Compliant and Informed
With terrorist financing enforcement ramping up, accountants play a critical role in protecting the financial system. Stay vigilant, update compliance protocols, and report suspicious transactions to avoid legal and financial risks.
