Terrorists are minority of money launderers

September 20, 2010

According to an ABC Bank presentation in 2008 on anti-money laundering awareness, money laundering is perpetrated mostly in the areas of smuggling, drugs, and other criminal activity.  Terrorists make up only a small portion of laundering worldwide.

Money laundering by criminal sector

Slide from ABC Bank presentation

Agreed, terrorists make up a minority of money launderersThat’s the problem.  Terrorists don’t specialize in taking dirty money resulting from crime, make it “clean,” and reintegrate it into the normal economy. 

What the jihadists do is take relatively “clean” money—money from charitable contributions (some given honestly but much given with the intent of funding terror), money from Koranic mandated sources of zakat and khums—and redirect for jihad.  Although funding terrorism is illegal under Western laws, using zakat to fund the mujahideen is lawful activity within the context of Islam.

One comment

  1. […] money laundering techniques such as placement, layering, or integration (which is consistent with prior Money Jihad analysis).  Their paper, “An Analysis of Money Laundering and Terrorism Tinancing […]

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