Countering Terrorist Financing: We Need a Long-Term Prioritizing Strategy

• NCJ Number: 200120
• Author(s): Sina Lehmkuhler
• Date Published: April 2003
• Length: 12 pages
• Sale Source: ANSER Institute for Homeland Security
• Publication Format: Document (Online)
• Publication Type: Legislation/Policy Analysis
• Language: English
• Country: United States of America
• Note: Downloaded April 30, 2003

Annotation

This document discusses the United States policy of countering terrorist financing.

Abstract

Since the September 11 terrorist attacks, much has been discovered about the financial support structure of terrorist cells. Investigation has revealed a wide array of methods used to fund terrorist activities, such as conventional money laundering, use of charities for fundraising, and informal money remittance systems such as hawala. The current techniques used to investigate terrorist financing methods have proven insufficient in combating unregulated and unmonitored means of money laundering and money remittance. The United States has succeeded in freezing terrorist assets in over 165 countries and more than $112 million in terrorist assets has been frozen worldwide in over 500 accounts. Along with legal and policy actions, the Government has addressed terrorist financing concerns by creating law enforcement task forces. The United States could not have achieved the success it has so far without the assistance of other states and the international law enforcement and financial communities. The Financial Action Task Force on Money Laundering acted to assist in the financial war on terrorism by recommending that each member country (31 entities) criminalize the financing of terrorism, terrorist acts, and terrorist organizations; report suspicious transactions linked to terrorism; and strengthen customer identification measures in wire transfers. The financial intelligence community has also weighed in on terrorist financing by maintaining and analyzing Suspicious Action Reports and Currency Transaction Reports filed by financial institutions in accordance with the Bank Secrecy Act. A challenge to countering terrorist financing is that many nations have varying definitions of terrorism and what acts constitute a terrorist attack. The multi-pronged approach to combat terrorist financing includes legal harmonization, technical assistance, a methods-based approach, and alternative remittance systems. The greatest weakness in the efforts to counter terrorist financing lies in the inability to develop effective tracking measures for trade-based money laundering and hawalas. 32 references