Mogadishu (Caasimada Online) – Somalia’s federal government has intensified its efforts to disrupt the financial networks of Al-Shabaab and the Islamic State (ISIS), announcing the seizure of hundreds of mobile phone numbers and dozens of bank accounts, alongside a wave of arrests targeting individuals accused of financing terrorism.

The clampdown is part of a broader national strategy to dismantle the economic foundations of extremist groups that have long waged a deadly insurgency in the Horn of Africa nation.

In a statement issued on Sunday, the National Committee for Anti-Money Laundering and Countering the Financing of Terrorism reported that more than 575 mobile numbers and 21 bank accounts used by Al-Shabaab had been deactivated or frozen between January 1 and June 30.

The meeting, held in Mogadishu and chaired by Finance Minister Bihi Imaan Ege, brought together top officials from the ministries of Justice, Security, Commerce, and Telecommunications, as well as representatives from the National Intelligence and Security Agency (NISA) and the National Communications Authority.

The government also shut down 88 merchant accounts tied to extortion and money laundering. Authorities said the operations formed part of a coordinated campaign to sever financial lifelines sustaining the insurgents.

“These actions are part of a broader, more aggressive strategy to weaken the financial backbone of the Khawaarij,” the government said, using a term often applied in Somalia to describe Al-Shabaab and ISIS militants.

Coordinated national push

Officials described the effort as a multi-pronged approach that combines investigation, enforcement, and prosecution. The initiative aims to improve transparency in Somalia’s banking and telecommunications sectors—frequently exploited by armed groups to collect so-called “taxes” from civilians and businesses.

“The Federal Government of Somalia has intensified efforts to dismantle the financial and economic infrastructure that terrorist groups use to fund their heinous operations,” the statement said. “The government has developed a special plan to cripple the economy of terrorists to ensure security and prevent terrorist threats.”

In addition to seizing accounts, authorities reported arresting several suspects accused of collecting illicit funds. Key financial operatives within the groups have been “targeted and eliminated,” the statement added, describing the move as a significant disruption to terrorist command and control structures.

The crackdown also included the dismantling of extortion hubs and storage sites used to hold cash collected from Somali citizens under threat.

Officials credited cooperation with private businesses and public awareness campaigns for helping to expose financial flows linked to terrorism. “These operations have been conducted in close cooperation with the Somali public and private businesses,” the government noted.

Legal warning and enforcement

The government reaffirmed its commitment to uphold constitutional obligations to protect citizens and enforce the rule of law. Authorities warned that anyone found to be facilitating, collecting, or paying funds to terrorist groups would face harsh legal consequences.

“Anyone found to be financing terrorism will face severe legal consequences,” the government said, in a blunt warning to individuals and companies alike.

Somalia has been mired in conflict since the fall of its central government in 1991. Al-Shabaab, which emerged in the mid-2000s as an offshoot of the Islamic Courts Union, has waged a brutal insurgency aimed at toppling the internationally backed federal government and imposing its hardline version of Islamic law.

Despite losing territory over the past decade to Somali troops and African Union forces, Al-Shabaab continues to carry out deadly attacks across the country and maintains a widespread extortion racket, taxing goods, transport, and businesses even in areas nominally under government control.

The group’s financial operations—funded through illicit taxation, money laundering, and control of key trade routes—are widely regarded as critical to its resilience.

More recently, ISIS has gained a foothold in parts of northeastern Somalia, particularly in Puntland, although its presence and influence remain far smaller than that of Al-Shabaab. Nonetheless, its emergence has added a layer of complexity to Somalia’s already fragile security landscape.

Somalia’s financial crackdown reflects a shift in strategy from relying solely on military campaigns to more comprehensive efforts that combine law enforcement, intelligence, and economic disruption. The campaign is also backed by international partners who have pushed Somalia to tighten controls on banking and telecommunications to prevent abuse by criminal and terror networks.

The government hopes that weakening the financial base of these groups will erode their capacity to recruit, arm, and operate—and in turn, help stabilize a country long plagued by insecurity.