Posts Tagged ‘terrorist financing’

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Experts study 52 Al Qaeda money schemes

March 2, 2015

When it comes to Islamic terrorism, we typically aren’t looking at money laundering scenarios. Rather, we’re looking money made through legitimate channels which is then diverted toward terrorism.  These recent findings from researchers at the National Consortium for the Study of Terrorism and Responses to Terrorism (START) align with previous Money Jihad analysis.

This graphic from their study shows the breakdown of the different types of financial schemes most commonly employed by Al Qaeda supporters in the U.S.:

Jihad by fraud

A summary of the report is here with links to the full study.

Hat tip to @switch_d and @skinroller on Twitter for sending this over.

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Iran still won’t sign accord against terror finance

February 23, 2015

The International Convention for the Suppression of the Financing of Terrorism went into effect in 2002. Over 180 countries have signed the rather bland convention. But not Iran.

Not that we could take Iran at its word, but shouldn’t they agree to sign the convention prior to concluding a deal with Iran about their nuclear program?

Lebanon hasn’t signed it either. Other non-signatory countries with Islamist political movements include The Gambia and Chad. But they don’t have nuclear programs.

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4 “Swedes” used 6 front companies to fund ISIS

February 22, 2015

And these are just among the handful that we know about. Not many details are available, but what sounds unusual about this case is that the suspects appear to have somehow used businesses to channel funds to the Islamic State of Iraq and Syria (rather than using more conventional terrorist methods of hawala, wire transfers, cash smuggling, or charities).

From Agence France-Presse on Feb. 17 (h/t El Grillo):

Swedish police detained four people Tuesday on suspicion of having used six companies to help fund the Islamic State group, the Dagens Nyheter daily reported.

Police said a “large raid” took place in Stockholm as part of a probe into money laundering and undeclared work but declined to comment further.

Sources close to the investigation told Dagens Nyheter the suspects had ties to Syria and IS.

The paper said Tuesday’s arrests targeted three men and a woman aged between 31 and 50.

Swedish government agencies estimate that up to 10 million Swedish kronor ($1.19 million, 1.05 million euros) are sent to violent extremist groups every year…

AFP goes on to mention that over a hundred “Swedes” have joined terrorist groups in Iraq and Syria since 2012. These are, more precisely, mostly Muslim immigrants, refugees, and their young adult sons who have become residents of Sweden.

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Ted Talk: Hawala focus distracts from Gulf donors

February 17, 2015

Following 9/11 and the invasion of Afghanistan, concerns about the use of hawala in terror finance schemes led Coalition forces and the new Afghan government to refrain from paying Afghan troop wages through hawala, although no other formal banking or payroll system was available at the time. Dr. Edwina Thompson argues that the preoccupation with hawala also distracted Coalition partners from confronting the true source of terror finance:  Gulf donors.

Here’s Thompson’s recent TEDxClapham talk on the subject.  Pay particular attention to minutes 11-14.  But watch the whole video—it includes Thompson’s reflection on her own near abduction by militants while doing research in Jalalabad:

The point is well made. As Money Jihad has often said, hawala is not a source of financing terrorism, it is a method. We can regulate or eliminate methods, but determined sources of financing will find other ways of transferring value unless we stop those donors where they live.

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Terror finance clues: suggested news reading

February 5, 2015
  • The Islamic State of Iraq and Syria pays local guides to trick journalists into being kidnapped… more>>
  • Turkish intelligence has been caught smuggling guns across the Syrian border to Al Qaeda… more>>
  • Why ISIS needs Saudi money to take the business of terror to a higher level… more>>
  • Former Senator Bob Graham tells an audience, “Al-Qaeda was a creature of Saudi Arabia; the regional groups such as al-Shabaab have been largely creatures of Saudi Arabia; and now, ISIS is the latest creature!” More>>
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Spain’s hawala network funds ISIS and al-Nusra

February 1, 2015

Intelligence services and Spanish authorities say that with a network of over 250 hawala dealers, Spain has become a financial center for funding terrorists in Iraq and Syria. Hawala is the traditional Islamic method of transferring value without transferring physical money.

The news daily El País further reports that there are scarcely any controls over hawala businesses in Spain. The majority of the hawala dealers are Pakistani, while many of their customers are Syrian and Moroccan. A hundred Moroccans in Spain have already joined the Islamic State of Iraq and Syria.

Khalid Sheikh Muhammad, the mastermind of 9/11, used hawala agents in Logroño and Barcelona in the early 2000s. And Spain’s hawala system has only grown since then.

Hat tip to Well es bien for sending this over.

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More Kouachi funding news: suggested reading

January 15, 2015
  • Al Qaeda in the Arabian Peninsula “chose the target, laid the plan and financed the operation” against Charlie Hebdo, according to AQAP chief Nasr al-Ansi… more>>
  • Azerbaijan Press Agency reports that the total value of weapons and ammo seized from the Kouachi brothers’ and Amedy Coulibaly was 27,000 euros… more>>
  • A weapons dealer in Belgium comes clean about selling $5,000 of arms to Coulibaly, which were later used by the Kouachi brothers in the Paris attacks… more>>
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