A 35-year-old South African man has been arrested on allegations of terror financing.
According to local reports, Ziyadh Hoorzook transferred bitcoins worth R11,500 (~$606) to an organization that allegedly has terrorist ties in 2017.
According to the Hawks, a branch of the South African Police Service which investigates organised crime, economic crime, corruption, and other serious crimes, Hoorzook was apprehended on January 3 2025 after an investigation spanning several years.
He faces charges under the Protection of Constitutional Democracy Against Terrorist and Related Activities Act (POCDATARA).
The Hawks stated that the investigation was thorough, commencing in May 2018 when they, along with the Financial Intelligence Centre (FIC), received reports of suspicious transactions potentially linked to terror financing.
It is alleged that bitcoins valued at R11,500 (~$606) were purchased via Luno, a South African cryptocurrency exchange and wallet service, following a transfer from Hoorzook’s bank account, the transaction reportedly happening on November 30 2017.
On the same day, the bitcoins were transferred from the suspect’s Luno wallet to a wallet linked to an organization that identifies itself as an independent charity.
“A preliminary investigation revealed that the transfer was in response to an advertisement appealing for financial support of the activities with weapons, financial aid and other projects assisting the participants in another country,” the Hawks stated.
“Furthermore, it is alleged that this non-profit organisation is linked to other two organisations.”
During his bail hearing on January 10 2025, Hoorzook stated his intention to plead not guilty, asserting that the case against him had been exaggerated.
“The state has falsely aligned me with a narrative that is factually incorrect,” he said.
On February 24 2023, South Africa was placed on the Financial Action Task Force (FATF) greylist for failing to meet eleven key measures of effectiveness in combating money laundering and terrorist financing.
Nigeria 🇳🇬, South Africa 🇿🇦 Placed under FATF Grey List – A Total of 8 African Nations Now Under Scrutiny
Interestingly, Botswana was grey listed by FATF before its removal in early 2022 after passing a virtual assets bill to regulate trading of cryptohttps://t.co/wOOrKihLyM
— BitKE (@BitcoinKE) February 28, 2023
The FATF identified 22 specific shortcomings which South Africa has been working to address in efforts to be removed from the grey list.
In 2024, the Financial Intelligence Centre issued Directive 9, mandating that cryptocurrency platforms in South Africa identify the parties involved in cryptocurrency transactions.
🇿🇦REGULATION | South Africa Seeks to Enforce New Directive for Crypto Companies to Share Customer Identities
In cross-border transfers, senders are required to furnish full names, comprehensive information regarding both the sending and receiving crypto wallets, and the… pic.twitter.com/5VHV6KPhtq
— BitKE (@BitcoinKE) May 30, 2024
This directive implements the FATF’s ‘travel rule,’ which requires financial institutions, including virtual asset service providers, to include detailed originator and beneficiary information with transactions.
According to the FATF, this measure helps prevent misuse by criminals and terrorists.
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