TERRORIST FINANCING ACTIVITIES
Terrorist organizations need money to do their evil deeds . Financing and funding can come from just about anywhere , stopping short of selling Girl Scout cookies . Here are some examples :
• Trade-Based Money Laundering : Terrorists manipulate international trade transactions to move funds across borders . They overvalue or undervalue goods , creating discrepancies that allow money to be transferred .
• Smuggling and Trafficking : Profits from smuggling drugs , weapons , or other contraband can fund terrorist activities . Smuggled goods provide a source of revenue .
• Extortion and Kidnapping : Terrorist groups may extort money from businesses , individuals , or governments . Kidnappings for ransom generate funds for their operations .
• Charitable Organizations : Some charities , intentionally or unwittingly , funnel money to terrorist groups . They may use legitimate humanitarian work as a cover .
• Promoting greater transparency and accountability in banking practices
• Enhancing international cooperation and coordination to address crossborder financial crimes
• Strengthening due diligence requirements for customer onboarding and transaction monitoring
Dr . Nick Oberheiden , an OFAC and Anti-money laundering defense attorney at Oberheiden P . C ., wrote an article published in the National Law Review : “ Five Things You Need to Know About OFAC and Anti- Money Laundering Laws for 2024 .”
In the article , Oberheiden presents suggestions that banks can implement to stay on top of AML laws , thereby helping to thwart laundering for the purpose of terroristic acts — and keep themselves on the right side of prosecution this year .
The attorney urged banks to stay vigilant in monitoring OFAC ’ s lists of sanctioned individuals and entities ; think outside the Ukraine box and remember that economic sanctions apply to Venezuela , North Korea , Syria , and Sudan ; know that investigators have figured out how to trace cryptocurrency across platforms and virtual currencies ; and be aware that foreign business partners — both old and new — can become a threat if they become intermediaries for sanctioned individuals or companies or if they begin to use the business transaction to launder money .
Conclusion
The issue of American banks ’ involvement in funding terrorism is a matter of grave concern for national security and global stability . Despite stringent regulatory measures and oversight , instances have surfaced indicating that certain financial institutions may have facilitated the flow of funds to terrorist organizations . Such involvement not only undermines efforts to combat terrorism but also poses significant risks to the integrity of the international financial system .
These allegations highlight the complex challenges faced by regulatory authorities in detecting and preventing illicit financial activities . Terrorist organizations exploit various channels , including formal banking systems , to move funds across borders clandestinely , making it difficult for authorities to trace and interdict these transactions effectively .
Furthermore , the involvement of American banks in funding terrorism raises questions about the adequacy of existing regulatory frameworks and the effectiveness of compliance mechanisms . It underscores the need for enhanced vigilance , collaboration , and information-sharing among financial institutions , regulatory agencies , and law enforcement bodies to combat this pervasive threat .
Paulos summed up the threat in a recent interview with Ring of Fire host Farron Cousins saying ,“ There are many , many instances of which the leaders of these terrorist organizations and officials within Iran or other state sponsors of terror … will flatly say that money is the lifeblood of terrorism .“
“ That giving money is the highest form of jihad , and that without money , there can be no jihad .”
52 x The Trial Lawyer