Financing terrorists and terrorism post 9/11

Moving the money

Terrorists use a wide variety of methods to wipe out the money trail by moving money within and between organisations, including the financial sector, the physical movement of cash by couriers, and the movement of goods through the trade system. Charities and alternative remittance systems have also been used to disguise terrorist movement of funds, and this adaptability and opportunism suggests that all the methods that exist to move money around the globe are to some extent at risk.

Supporters of terrorist and paramilitary groups exploit their presence within expatriate or diaspora communities to raise funds through extortion, or to 'tax' the diaspora on their earnings and savings, generally targeted against their own communities where there is a high level of fear of retribution should anyone report anything to the authorities. They may also threaten harm to the relatives of the victim – located in the country of origin – which further frustrates any law enforcement action.

"Extortion from diaspora communities can be a significant and consistent source of funds.

Law enforcement agencies believe that before 2001 one terrorist group collected up to US$1 million a month from expatriates in Canada, Britain, Switzerland and Australia, making it one of the best-funded terrorist groups in the world. Incidentally, this terrorist group continues to extort money from expatriates today, even though both the conflict and military wing have ceased to exist.

The opportunism of terrorist financiers is particularly illustrated by cases where suspects move fluidly from one kind of crime to another, such as burglary, identity theft, and credit card fraud.

Whether through the absence of effective jurisdictional control, tolerance of terrorist organisations and their activities, or active support to terrorist organisations, safe havens, failed states, and state sponsors such as Somalia, Iraq, and the Pakistan-Afghanistan border, create enabling environments or otherwise provide crucial support to terrorist organisations today.