By DAYO ADESULU
South Africa has been accused of providing a conducive environment for money laundering and fundraising networks allegedly linked to Iran, Hamas, Hezbollah and ISIS, according to a new report by the Amit Terrorism and Intelligence Research Institute (ITIC).
The report, titled “Funding Terrorism – Historical Review and Future Trend,” was authored by Dr. Udi Levi and published on August 13, 2026. It examines how terrorist organisations and sanctioned regimes allegedly exploit international financial systems, front companies and regulatory weaknesses to move money across borders.
According to the report, South Africa’s combination of diplomatic relations with Iran and weaknesses in financial oversight has created conditions that can be exploited by terrorism-financing networks.
The ITIC described the country as “a haven for money laundering and fundraising for Iran, Hamas, Hezbollah and ISIS,” alleging that networks associated with the groups have used South African financial channels and corporate structures to facilitate transactions.
Nazem Said Ahmad Network Highlighted
One of the cases highlighted in the report involves a financial network linked to Nazem Said Ahmad, a Lebanese businessman who has previously been identified by U.S. authorities as being connected to Hezbollah’s financial activities.
The ITIC report alleges that networks associated with Ahmad have operated front companies in South Africa and moved millions of dollars through major banks.
However, the report does not identify the specific South African banks allegedly involved. It also does not provide details of any current investigation by South African law-enforcement authorities into the claims.
The allegations therefore remain subject to independent verification.
Report Raises Questions About South Africa’s Financial Controls
The report places South Africa’s alleged vulnerability within a broader argument about weaknesses in global efforts to combat terrorism financing.
According to the ITIC, countries can become important “force multipliers” for terrorist financing when organisations exploit national banking systems, corporate structures and regulatory gaps.
The report argues that such networks can move substantially larger amounts of money when they operate through established financial systems than when they rely solely on individual donors or informal channels.
South Africa’s history with international financial-compliance concerns is also referenced.
The Financial Action Task Force (FATF) previously placed South Africa on its grey list in 2023 after identifying deficiencies in the country’s measures for combating money laundering and terrorist financing.
However, South Africa made significant reforms and was officially removed from the FATF grey list in October 2025.
That development represents an important distinction in assessing the latest allegations. While the ITIC report argues that serious vulnerabilities remain, South Africa has also taken documented steps to strengthen its anti-money-laundering and counter-terrorist-financing framework.
Iran, Hamas, Hezbollah and ISIS Named
The ITIC report’s allegations extend beyond one organisation or individual.
It identifies financial networks allegedly connected to Iran, Hamas, Hezbollah and ISIS as beneficiaries of weaknesses in international financial controls.
The report also examines other countries that it says have, at different times, provided financial or institutional environments that can be exploited by sanctioned regimes or armed groups.
Among the countries mentioned are Qatar, the United Arab Emirates, Saudi Arabia and Venezuela.
The report argues that sovereign protection, political relationships and weaknesses in enforcement can make it possible for financial networks connected to armed groups to operate on a scale that would otherwise be difficult to achieve.
However, the report’s assessment of the countries differs.
For example, it says Saudi Arabia has moved more aggressively against jihadist and pro-Iranian financial networks, while portraying South Africa as a country where regulatory concerns remain unresolved.
What the Report Does Not Establish
Despite the seriousness of the allegations, the ITIC report does not establish that the South African government is directly financing terrorist organisations.
It also does not identify specific South African financial institutions as knowingly participating in terrorism financing.
Furthermore, the available report does not indicate whether South African authorities have launched investigations into the specific allegations involving the Nazem Said Ahmad-linked network.
Those distinctions are important because the existence of alleged financial activity within a country’s banking system does not, by itself, establish that the government, banks or regulators knowingly facilitated terrorism financing.
Why This Matters
The allegations could place renewed attention on South Africa’s role in the global fight against terrorism financing, particularly as financial networks increasingly rely on legitimate companies, international banking systems and cross-border transactions.
For South Africa, the issue could also raise questions about whether reforms that helped the country leave the FATF grey list have sufficiently addressed vulnerabilities identified by security and intelligence researchers.
For international authorities, meanwhile, the case highlights the continuing challenge of tracing funds that move through apparently legitimate businesses before reaching sanctioned individuals or organisations.
Effective enforcement requires cooperation between financial institutions, intelligence agencies, law-enforcement bodies and international regulators.
ITIC Plans Further Reports
The South Africa assessment is part of a wider series that the Amit Terrorism and Intelligence Research Institute says it plans to publish on terrorism financing.
Future studies are expected to examine the financial infrastructure associated with Hamas and Hezbollah in greater detail.
The broader objective is to track how terrorist and militant organisations raise, transfer and conceal funds through international financial networks.
Allegations Remain Unverified
The claims regarding South Africa, the Nazem Said Ahmad-linked network and the alleged use of local banking infrastructure have not been independently verified by SaharaReporters, which published the original report.
The allegations should therefore be understood as findings and claims contained in the ITIC report rather than established facts.
South Africa’s removal from the FATF grey list in 2025 also demonstrates that the country has made measurable progress in strengthening its financial-control systems, even as questions remain over the effectiveness of those reforms.
As governments intensify efforts to disrupt terrorism financing, the ability of financial networks to exploit legitimate businesses and banking channels will remain a major security concern.
FAQs
Is South Africa financing Hamas, Hezbollah or ISIS?
The ITIC report does not establish that the South African government is financing these groups. Instead, it alleges that networks associated with the organisations have exploited financial and regulatory vulnerabilities in the country.
Who is Nazem Said Ahmad?
Nazem Said Ahmad is a Lebanese businessman who has been linked by U.S. authorities to Hezbollah’s financial activities. The ITIC report cites networks associated with him as an example of alleged financial activity involving South Africa.
Was South Africa previously on the FATF grey list?
Yes. South Africa was placed on the FATF grey list in 2023 because of deficiencies in its anti-money-laundering and counter-terrorist-financing framework. It was removed from the list in October 2025 after making significant progress.
Has South Africa responded to the latest allegations?
The material provided does not contain a response from South African authorities to the specific allegations made in the ITIC report.
What is the ITIC?
The Amit Terrorism and Intelligence Research Institute is a research organisation that publishes assessments on terrorism, intelligence and security-related issues.
Conclusion
The ITIC report has raised fresh allegations about South Africa’s alleged role as a transit point for terrorism-linked financial networks connected to Iran, Hamas, Hezbollah and ISIS.
While the claims are serious, they require careful distinction between alleged activity by private networks and proven government or institutional involvement. South Africa’s previous FATF grey-listing and subsequent removal also show that its financial-control system has undergone significant reforms.
The coming months could bring greater scrutiny of the report’s allegations, particularly if South African authorities or international financial investigators provide further evidence, investigations or responses..
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