Over the years, the old adage that people determine the successes and failures of an organization has been proven to be true many times over. In terrorism and criminal organizations this simple statement echoes so loudly among the many conspirators. Approaching this issue is very difficult, many variables arise that must be examined to get to the core of problem. Getting to the core is easier said than done, we must take a hard stare at the political, religious, and ideological goals of terrorist organizations. Stepanova in “PONARS Policy Memo No. 393,” argues that as terrorism is rarely the only form of violence practiced by armed groups, illicit drug business is rarely their sole source of funding. (1) All terrorist organizations are involved in illicit finance in some shape, form or fashion.
Terrorist groups use drug money for self-financing, particularly to enable the acquisitions of arms, materials, and equipment. Many of today’s capabilities arise from a continued reliance on illicit activities, methodologies, and processes that are appropriate to enable terrorist’s functions. The similarities between terrorist groups and criminal structures lie in the methods used to accumulate funding and launder money. Money laundering possess several decided advantages that enables terrorist and criminal organizations to overcome the limitations on our capabilities to counter their illicit activities. The greatest difference between terrorist and criminal organizations lie in the nature of their respective ultimate goals, which determines the way they spend their funding.
Illicit finance supports two basic types of terrorist groups; The Traditional and Non-traditional. Traditional organizations are categorized because of...
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...nd methodology focused on breaking down the link between the two may get the details right while focusing on important factors that need to be conveyed in order to provide a true sense of the uncertainties of both organizations. In closing, there are many ways to attack this issue, but as an intelligence community we have to approach it strategically. We must hold these organizations accountable, accountable for death and destruction that their illicit activities have been responsible for globally.
Works Cited
1. “Illicit Drug Trafficking and Islamic Terrorism as Threats to Russian Security, December 2005 :http://csis.org/files/media/csis/pubs/pm_0393.pdf, 165
2. Ibid., 166
3. Ibid., 169
4. Money Laundering and Terrorist Financing: Definitions and Explanations, accessed May 4th 2014, http://www1.worldbank.org/finance/assets/images/01-chap01-f.qxd.pdf, Page I6
Tankel, Stephen. 2009. “Lashkar-e-Taiba:From 9/11 to Mumbai” Developments in Radicalization and Political Violence. International Centre for the Study of Radicalization and Political Violence. Print
Drug trafficking and terrorism are illegal clandestine activities with strong national security and law enforcement threat components and operational similarities. Terrorists like drug traffickers, need weapons and engage in violence to achieve goals. Terrorists, like drug traffickers, are often involved in hiding and laundering sources of funds. Both terrorists and drug traffickers operate transnationally, and often get logistical and operational support from local ethnic satellite communities. Both groups often rely on the criminal community for support: they may need smuggled weapons, forged documents and safe houses to operate effectively. Finally, both groups need a steady cash flow to operate. In the case of terrorists, where state sources of funding are rapidly diminishing, drug trafficking is an attractive funding option. Increasingly, terrorist organizations are looking to criminal activity and specifically the drug trade as a source of funding. The FARC (Revolutionary Armed Forces, a guerilla force) in Colombia are but one of many cases in point.
According to Money Laundering: A Guide for Criminal Investigators, terrorist financing originates from four sources: criminal activity, legitimate or semi legitimate business, government or state sponsorship and charitable contributions or donations (Madinger, 279). Contrary to public belief, many terrorist organizations solicit money directly from the local community. By soliciting donations and contributions, the organization is able to legitimately raise money for their operations. In addition, the role of states sponsoring terrorism through monetary contributions continues to be a growing threat. According to the US State Department, countries that are currently directly sponsoring terrorism include: Cuba, Iran, Libya, North Korea, Sudan and Syria (US State Department). In an effort to elude detection from authorities and to continue funding their organizations, terrorists also finance themselves through legitimate businesses. The Provisional Irish Republican Army oper...
Anand, A. (2011). Combating terrorist financing: Is Canada’s legal regime effective? University of Toronto Law Journal, 61(1), 59-71. Retrieved from http://library.mtroyal.ca:2078/journals/university_of_toronto_law_journal/v061/61.1.anand.html
“Money laundering is the process by which one conceals the existence of illegal source, or illegal application of income, and then disguises income to make it appear legitimate”. By the 1970’s, criminal organizations and more specifically, the drug trade began to make profits that attracted the attention of Congress. In 1999, it was estimated that drug trafficking alone produced approximately $48 billion in profits per year to be laundered in U.S. Dollars. These profits could no longer go unnoticed by drug dealers spending it on daily activities such as food, clothes, and entertainment. From a pure logistics standpoint, $48 billion dollars isn’t going to fit under the mattress. Drug dealers were forced to try and blend these profits into legitimate business or pass it through financial institutions in the hope that the money’s origin would become obscured.
Sageman, Marc. "The Journal of International Security Affairs The Normality of Global Jihadi Terrorism 2005th ser. Spring.9 (2005). .
Miller, M. A. (2013). The foundations of modern terrorism: state, society and the dynamics of
Shanty, Frank, and Patit Paban. Mishra. Organized Crime: From Trafficking to Terrorism. Santa Barbara, CA: ABC-CLIO, 2008. Print.
Herman, E. & Sullivan, G. O.1989. The Terrorism Industry: The Experts and Institutions That Shape Our View of Terror. New York: Pantheon.
What is Money Laundering? Money laundering is when funds from criminal activity are converted into “clean money” and cannot be traced back to the criminal activity. The goal is to conceal the criminal activity and the criminals involved. One of the main reasons people commit criminal acts is to make money off of it. Money laundering allows criminals to enjoy these illegal proceeds without law enforcement notice.
There often is a nexus between organized crime, drug trafficking, and even terrorism. Similarities between drug trafficking and terrorist organizations take many forms. Forms such as protection, taxation, facilitation, and transportation to direct trafficking by the terrorist organization itself so it can finance the activities. Traffickers and terrorists have similar needs in terms of logistics, materials and the covert movement of goods, people and money. Relationships between drug traffickers and terrorists benefit both. Terrorists gain a source of revenue and expertise in illicit transfer and laundering of proceeds from illicit transactions. Drug traffickers benefit from the terrorists ' military skills, weapons supply, and access to clandestine organizations. Both groups are supported by corrupt officials whose services provide benefits, such as greater access to fraudulent documents. National security is always at risk when created organizations decided to become involved with these types of dealings. Not just the national security to
Hutchinson, Steven, and Pat O’Malley. "A Crime–Terror Nexus? Thinking on Some of the Links between Terrorism and Criminality." Studies in Conflict & Terrorism 30.12 (2007): 1095-107.
Terrorist organizations have been committing atrocities against innocent civilians throughout the world for hundreds of years. Terrorism has evolved in many different forms and from various motivations such as religious protest movements, political revolts, and social uprisings. Regardless of the motives for terror, the problem is the financing of terrorism and terrorist organizations themselves. Recent global terrorist attacks using high technology and extensive networks have shown that money is essential to provide the means behind all terrorist activities. Individual terrorists plan terrorist operations and require resources to live, prepare, and implement their plans. The use of money laundering and financial support schemes are the root of the cause. If money laundering were curtailed or even eliminated, and financial supporters of terrorism were identified terrorism would decrease dramatically. To achieve these goals would take monumental efforts. The United States, United Nations and all sovereign nations would need to take cooperative action that has never been accomplished. Terrorism, its' history, concepts, reasoning, methods, and financial roots are object of this research.
Money laundering is the routing of illegal profits from bank to bank to disguise its existence. The illegal profits are usually made through activities such as drug trafficking, prostitution rings, illegal arms sales, and various other things. Unfortunately money laundering is a serious crime that is still prevalent in the United States and other countries. The Russian mafia, the Triad or Chinese mafia, and the Columbian drug cartel are just a few of the groups that partake in money laundering. No one knows exactly how much money is laundered yearly but it is estimated to be about $100 billion in the United States. The United States is not the only country affected by these numbers. The estimated amount of laundering is 2% - 5% of the world’s GDP, between $600 billion and $1.5 trillion dollars annually. Although there are hundreds of ways in which to launder money, some are more lucrative than others. For example, the Black Market Peso exchange, gold, and digital cash are some of the more common ways to launder money. Making it harder to crack down on money laundering is the fact that many countries do not have money-laundering laws in place like the United States does. These other countries make it possible for this illegal activity to carry on, and are only hurting themselves because money laundering creates a direct negative effect on their economy. If these nations want to fight money laundering they will need to implement laws against it. Banks could be one of the most useful tools in stopping the laundering of money.