US sanctions 16 companies for financing Al-Shabaab operations

The 16 were allegedly involved in raising and laundering millions of dollars. [iStockphoto

The United States has sanctioned 16 companies including a Kenyan bus company for allegedly financing Al-Shabaab operations.

The bus company allegedly supported the militants' logistical operations, according to a statement from the US Department of Treasury.

The US has reiterated its commitment to working with regional partners to root out terror financing networks and entities.

"Today's action is part of a multifaceted effort by Treasury to support the Somali government's economic offensive against al-Shabaab - one of three pillars in their campaign to degrade this deadly terrorist group," said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson.

The sanctioned individuals and entities were allegedly involved in the raising and laundering of millions of dollars through several businesses at the direction and in the interest of al-Shabaab.

"As a result of today's action, all property and interests in property of the individuals and entities named above, and of any entities that are owned, directly or indirectly, 50 percent or more by them, individually, or with other blocked persons, that are in the United States or in the possession or control of U.S. persons must be blocked and reported to Office of Foreign Assets Control (OFAC)," read the statement.