Terrorism and Finances
Introduction
Terrorism is one of the primary concern in the world, with the United States being the leading country in the fight against terrorism. The United States security officials believe that for terrorism to end; terrorists’ sources of finances have to be blocked, which has proved to be very difficult because terrorists can attack at a relatively low cost. Terrorists use different methods to raise money to fund their activities.
Methods Used By Terrorists to Raise Money
Charities
Terrorist organisations have been using charities as the most significant source of their finances. There are a lot of private charities based in Saudi Arabia. Saudi Arabia officials have taken steps to stop terrorist financing in Saudi Arabia, but all measures have been unsuccessful (Masciandaro, 2017). Some organisations raise funds intending to support terrorist, while other organisations raise funds to promote Islamic religion but are hijacked by jihadists who use the money in funding terror attacks.
Illegal Activities
Terrorists also raise funds through the illegal drug trade. Terrorists in Colombia have been using cocaine trade to support their activities. Al-Qaeda reportedly made a lot of money from the sale of the poppy plant, which is used to manufacture opium drug (Masciandaro, 2017). Terrorist also use illegal business to raise money. Terrorist behind the bombing of the world trade Centre in 1993 raised money through selling of counterfeit shirts on the Broadway of New York City (Masciandaro, 2017). Terrorist behind the train bombing in Madrid raised money through the sale of counterfeit CDs and participated in drug trafficking.
Front Companies
Terrorist organisations have been attempting to run legal businesses to generate their own money to be used as a front for cash cleaning. Some of the businesses that have been associated with terrorist are; livestock trading, fish farming, and the sale of leather (Masciandaro, 2017). Before the death of Osama bin Laden, he was believed to own several honey shops in Pakistan and the Middle East.
Oil
ISIS is more advantaged compared to other terrorist groups due to its access to oil. ISIS controls a couple of oil fields in Syria and Iraq (Masciandaro, 2017). ISIS exports oil through Turkey. ISIS is believed to generate over $600 million annually through exportation of oil.
Taxation and Ransom
Terrorist groups like ISIS also make money through taxation. All businesses that are operated in ISIS’ territory are obligated to pay tax (Masciandaro, 2017). ISIS tends to charge all importations and exportations carried out in their territory, fines due to breaking their laws, and income tax. ISIS also kidnaps people and asks for a ransom to release the hostages.
A lot of difficulties are experienced when trying to track down terrorist financiers. Terrorist is always aware of the governments’ efforts to stop their operations (Masciandaro, 2017). Hence they adjust their activities accordingly. Terrorist financing undergoes modification continuously; hence, terrorists are still a step ahead of the government.
Terrorist engagement in illegal activities like drug smuggling to generate money has made it difficult for authorities to track terrorists’ finances through the financial systems. Most terrorists recently have begun to rely on liquid cash; hence, no paperwork to be traced.
Terrorists also use local sources in preparation, and financing of attacks. The bombings that happened in London were planned by British citizens, who also raised funds for the attack (Masciandaro, 2017). Terrorists who plotted the attack only used cash, and never crossed national borders hence making it difficult to trace the financial activities.
In conclusion, terrorists have been raising money through charities, illegal activities, taxation and ransom, oil, and front companies. Tracking down terrorist finances have proved futile since Terrorists also use local sources in preparation, and financing of attacks and Terrorist are always aware of the governments’ efforts to stop their operations. Hence they adjust their activities accordingly.
References
Masciandaro, D. (Ed.). (2017). Global financial crime: terrorism, money laundering and offshore centres. Taylor & Francis.