Terrorist Financing Process
Terrorist Financing Process
Terrorism Financing is the process of providing financial assistance to terrorists. Terrorists use various methods to avoid the vigilant eyes of law enforcement and crime prevention authorities. They collect funds from charity/NPO grants and donations and then buy expensive items like antiques or crypto or store funds into bank accounts. They then try to transfer funds to the desired location and account by making hawala transactions, dealing with crypto, or wire transfers. Finally, they use the funds for terrorist activities.
The above infographic depicts the overall Terrorist Financing process. It is also available as a free download in pdf format.
FAQs - Terrorist Financing Process
How are terrorist organisations financed?
Terrorist organisations are financed through legal or illegal sources. Illegal sources can range from trafficking, cybercrime, kidnapping, corruption, bribery, financial fraud, embezzlement, market abuse, forgery, etc. Legal sources include state sponsorship, microfinancing, donations, remittances, legal business activities, etc.
What are the main sources of terrorist financing?
The primary sources of terrorist financing can be legal or illegal. Legal sources include government funds, conducting legal business, cultural activities, etc. Illegal sources include corruption, financial fraud, bribery, embezzlement, drugs and human trafficking, cybercrime, kidnapping, etc.
What are the 3 steps of terrorism financing?
The three steps of terrorism financing are:
- Collecting funds through microloans, donations, charity/NPO grants, etc.
- Transferring these funds to terrorist organisations, networks, or cells
- Using these funds to fund the activities of terrorists such as buying weapons, bombs, paying for expenses, etc.