Terrorism Funding

Extracted Attributes

• Alternative Name

  Terrorist Financing

• Key Legal Instrument

  International Convention for the Suppression of the Financing of Terrorism (1999)

• Common Funding Methods

  Charities, Hawalas, Crowdfunding, Virtual Assets, Entitlement Fraud, Trafficking

• Primary Regulatory Body

  Financial Action Task Force (FATF)

• Greylisted Countries (as of 2019)

  Pakistan, Bahamas, Botswana, Cambodia, Ghana, Iceland, Mongolia, Panama, Syria, Trinidad and Tobago, Yemen, Zimbabwe

• Blacklisted Countries (as of 2019)

  North Korea, Iran

Timeline

• The International Convention for the Suppression of the Financing of Terrorism is adopted by the UN General Assembly. (Source: UNODC)

  1999-12-09

• The US Treasury Department releases a comprehensive report on terrorist financing methods and risks. (Source: Treasury.gov)

  2008-02-01

• The FATF updates its blacklist and greylist, identifying North Korea and Iran as high-risk jurisdictions. (Source: Wikipedia)

  2019-10-24

• Investigative journalist Nick Shirley reports on the Minnesota Daycare Fraud and its potential links to terrorism funding for al-Shabaab. (Source: Document 50cb012b-defb-4e4a-a485-0740769f4098)

  2024-01-01

Terrorism financing

Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors. Most countries have implemented measures to counter terrorism financing (CTF) often as part of their money laundering laws. Some countries and multinational organisations have created a list of organisations that they regard as terrorist organisations, though there is no consistency as to which organisations are designated as being terrorist by each country. The Financial Action Task Force on Money Laundering (FATF) has made recommendations to members relating to CTF. It has created a Blacklist and Greylist of countries that have not taken adequate CTF action. As of 24 October 2019, the FATF blacklist (Call for action nations) only listed two countries for terrorism financing: North Korea and Iran; while the FATF greylist (Other monitored jurisdictions) had 12 countries: Pakistan, Bahamas, Botswana, Cambodia, Ghana, Iceland, Mongolia, Panama, Syria, Trinidad and Tobago, Yemen, and Zimbabwe. In general, the supply of funds to designated terrorist organisations is outlawed, though the enforcement varies. Initially, the focus of CTF efforts was on non-profit organizations, unregistered money services businesses (MSBs) (including so-called underground banking or ‘Hawalas’) and the criminalisation of the act itself.

Web Search Results

• [PDF] TERRORIST FINANCING | Treasury.gov

  Terrorist organisations receive considerable support and funding from and through legitimate sources including charities, businesses, and through self-funding by terrorists and their associates from employment, savings, and social welfare payments. This includes the phenomenon known as “black-washing” where legal funds, for example money stemming from collection by charities or governmental subsidies and social benefits, are diverted for purposes of radicalisation, recruitment or terrorism. [...] terrorist attacks and provide direct operational support, terrorist organisations require funding to develop a supporting infrastructure, recruit members and promote their ideology. In addition, this infrastructure spending may go to support charitable organisations and media owned or controlled by the terrorist organisation. Charities Terror networks often use compromised or complicit charities and businesses to support their objectives. For example, some groups have links to charity branches [...] small, decentralised independently supported organisations on the other. At its extreme, this second category has involved small, ostensibly self-directed networks seeking to meet their own funding requirements through means that differ little from their everyday activity. Purchases – even when used to procure the precursors for attacks – are not conspicuous. Terrorist financing requirements fall into two general areas: (1) funding specific terrorist operations, such as direct costs associated

• Combating Terrorist Financing

  Terrorist groups need money to sustain themselves and carry out terrorist acts. Terrorist financing encompasses the means and methods used by terrorist organizations to finance their activities. This money can come from legitimate sources, for example from business profits and charitable organizations, or from illegal activities including trafficking in weapons, drugs or people, or kidnapping. [...] Countering the financing of terrorism (CFT) is a highly complex endeavour that involves many different actors. We support Member States with a wide variety of responses, ranging from legislation and international policy, to operational level responses. Our legal support is primarily underpinned by the International Convention for the Suppression of the Financing of Terrorism (1999).

• Anti-Money Laundering and Combating the Financing of ...

  Terrorism Financinginvolves the raising and processing of funds to supply terrorists with resources. While ML and TF differ in many ways, they often exploit the same vulnerabilities in financial systems that allow for an inappropriate level of anonymity and opacity in the execution of financial transactions.

• Financing Patterns Associated with Al Qaeda and Global Terrorist ...

  associated with terrorism investigations being conducted in various foreign countries in an effort to identify, track, and locate associates, funding sources, other cell members, etc. Terrorist Funding Through Criminal Activity Another pattern of terrorist financing involves funding of terrorist cell activities through various criminal activity. Al Qaeda has been known to encourage and instruct terrorist cells in terrorist training camps in Afghanistan in ways they can fund their terrorist [...] in the realm of logistical support for terrorist activity. Another trend that has been identified involves the funneling and/or laundering of terrorist funds raised outside the U.S. through the U.S. on its way to the Middle East. Terrorist financing methods range from the highly sophisticated to the most basic. There is virtually no financing method that has not at some level been utilized by terrorists and terrorist groups. Traditionally, their efforts have been aided considerably by the use [...] car theft, and car burglary to fund their cell activities. NGOs The funding of terrorist organizations such as Al Qaeda and Hamas through NGOs and charitable organizations represents a significant challenge to law enforcement and is a prime focus of terrorist financial investigations. International radical fundamentalist terrorist organizations have increasingly utilized NGOs as fund-raising vehicles for their terrorist activities. NGOs may also offer terrorists logistical support in the form

• FATF report highlights evolving terrorist financing risks and warns of ...

  Crowdfunding for Terrorism Financing This report analyses how terrorists have exploited fundraising platforms and crowdfunding activities on social media to seek funding for their terrorist cause from a global audience. It highlights challenges, good practices and risk indicators to help public and private sector entities identify potential attempts at terrorist financing using crowdfunding. ###### Discover [...] Today’s report outlines current and evolving methods employed by terrorist organisations and individuals to raise, move, store, and use funds and assets, including cash transportation, hawala and other similar service providers, money value transfer services, online payment services, formal financial services, digital platforms (including social media and crowdfunding features), Virtual Assets, and the abuse of legal entities, such as shell companies, trusts and non-profit organisations (NPOs). [...] A marked increase in the mixed use of diverse methods of financing and the integration of digital technologies with conventional techniques, adding new layers of complexity to TF activities. Operations increasingly decentralised, with regional financial hubs and self-financed cells playing a larger role, adapting to local contexts, and using a broader range of funding sources, from criminal proceeds to investments in business activities.