FINANCING OF TERRORISM: SOURCES, METHODS, AND CHANNELS

Nimrod Raphaeli

Terrorism and Political Violence, 2003, vol. 15, issue 4, 59-82

Abstract: Terrorism has global reach in its activities and in its sources of funding. There are manifold sources operating through methods that may be legal or illegal and sometimes even nefarious, and through routes that are often circuitous. Indeed, so-called charitable organizations are often used as a front to mobilize funds or serve as a conduit for the money. It is clear that if acts of terrorism are to be eliminated, the flow of money on which they ride must be stemmed at the source. This is one area in which stringent financial procedures and controls could be helpful. Equally important is the control that central banks must exercise in the financial sector, and the banking system in particular, to ensure greater accountability and better record keeping. Realistically, however, as long there is someone who operates a hawala system from a back of a store, money will keep flowing. No less important is the cooperation between countries and the enforcement of international conventions. A recent article on the transfer of money in Dubai notes that the authorities counted 429 suspicious money transfer operations between August 2001 and May 2003. Of these, only 46 cases were thoroughly investigated because there was little support from other countries involved, including Britain, Switzerland and the United States. Finally, education systems that teach jihad (holy war) as the highest calling for the individual and breeds religious intolerance must be reformed.

Date: 2003
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DOI: 10.1080/09546550390449881

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