NCJ Number
197777
Journal
Jane's Intelligence Review Volume: 14 Issue: 11 Dated: November 2002 Pages: 23-25
Date Published
November 2002
Length
3 pages
Annotation
This article examines the challenges involved with obstructing the financial support of terrorist organizations.
Abstract
The author explains that the Association of Southeast Asian Nations (ASEAN) Regional Forum established guidelines to monitor suspicious financial transactions, to share intelligence across borders, and to investigate terrorist activities. The biggest challenge has been in restricting the flow of financial support to terrorist organizations, especially in Southeast Asia where terrorists have developed methods to generate, store, and transfer funds without raising suspicion. In the Philippines, such methods include the misuse of charitable organizations, extortion, fundraising, kidnapping and ransom, and narcotics sales. The author explains how terrorist organizations have used these funds to support individuals who are carrying out terrorist plots, such as Zacarias Moussaoui who received a $2,500 monthly stipend. The financial arrangements of Al-Qaeda are difficult to uncover because they discretely and efficiently use the legitimate banking system. Any abuses that would raise suspicion are carried out in the informal financial structure and are, thus, difficult to trace. In fact, the FBI described the nature of Al-Qaeda’s financing scheme for the September 11th attacks as “ordinary.” The author describes how wire transfers were used to supply approximately $103,200 to terrorists active in the United States. In conclusion, the author notes that the Basel Committee on Banking Supervision called for increased coordination among prosecutors, financial intelligence units, and banking supervisors in order to effectively curtail the financial support of terrorist networks.