The recent court appearance of Ziyadh Hoorzook, a 35-year-old Johannesburg man accused of using Bitcoin to fund terrorist activities, has underscored the rising concerns over terrorism financing in South Africa. Hoorzook appeared before the Lichtenburg Magistrate’s Court in the North West on Friday, 10 January 2025, for his bail application after being charged under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act.
The Arrest and Allegations
Hoorzook was apprehended at his Johannesburg home on 3 January 2025 following a multi-year investigation launched in May 2018. The probe was initiated by the Financial Intelligence Centre and the Hawks after they flagged suspicious financial transactions.
Hawks spokesperson Colonel Philani Nkwalase revealed that the accused allegedly purchased R11,500 worth of Bitcoin through the cryptocurrency platform Luno on 30 November 2017. The Bitcoin was then transferred to a wallet linked to a purported charity, which investigators claim has connections to organizations supporting terrorist activities abroad.
Preliminary findings suggest the funds were in response to appeals for financial aid to procure weapons and support operations in other countries.
Terrorism Financing: A Growing Concern
This case has spotlighted South Africa’s vulnerability to terrorism financing. The 2024 National Risk Assessment identified the country as a high-risk zone, exacerbated by its greylisting by the Financial Action Task Force (FATF) in February 2023. The FATF cited deficiencies in addressing money laundering, terrorist financing, and proliferation financing.
Willem Els, a senior training coordinator at the Institute for Security Studies (ISS), noted that South Africa’s historical approach to terrorism has been one of reluctance, rooted in the post-apartheid era’s sensitivities.
Els highlighted how historical events, such as the Pagad bombings in Cape Town during the late 1990s and the Boeremag trial in 2002, forced the nation to confront terrorism. However, he emphasized that the lack of consistent focus on counterterrorism has allowed the issue to persist.
Progress and Challenges
Colonel Nkwalase acknowledged the progress in addressing terrorism financing but stressed that more needs to be done. While the arrests of Hoorzook and other individuals signal progress, the Hawks have hinted at the possibility of further arrests in ongoing investigations.
Els agreed, stating, “The arrest of Hoorzook is a step in the right direction, but we still face significant capacity challenges.”
Collaboration and Future Efforts
Authorities are bolstering their efforts through collaboration with financial institutions, regional partners, and international agencies. These partnerships aim to improve the detection and prosecution of terrorism financing activities.
As South Africa grapples with these challenges, the Hoorzook case serves as a stark reminder of the evolving threats posed by terrorism financing in an increasingly interconnected digital economy.
