How to fight terrorist financial networks?
Thanks to a SWJ comment which linked to this book review of a 2015 book, which was missed:http://www.thewashingtonbookreview.c...cial-networks/
The book is Counterterrorism and Threat Finance Analysis during Wartime edited by David M. Blum and J. Edward Conway, Lexington Books (Rowman & Littlefield), US $85.00, Pp 212, February 2015, ISBN 978-0739180433.
The review states:
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The editors have been members of either the Afghanistan Threat Finance Cell (ATFC) or the Iraq Threat Finance Cell. Both Blum and Conway were deployed in wars.
Enhancing Financial Intelligence
Just spotted and not read a new RUSI report 'Making Information Flow: Instruments and Innovations for Enhancing Financial Intelligence':https://rusi.org/sites/default/files...ation_flow.pdf
Slogans and statements have no effect
An Indian commentary asks whether a "cashless" society will reduce terrorism and found - to my surprise - this:
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a “cashless economy” need not be “terror-free”. In November 2014, CNBC conducted a survey of the 10 top “cashless” societies. It found Belgium to be the world’s top cashless society with 93 per cent non-cash consumer payments and 83 per cent debit card use. France was second, then Canada, the UK, Sweden, Australia, Holland, the US, Germany and South Korea. Unfortunately, Belgium and France were also the worst victims of indigenous and trans-border terrorism.
Then citing FATF and US reports states:
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Detecting terror financing through legal channels is an extremely onerous task, as the US Treasury and FATF reports would indicate.
Link:http://indianexpress.com/article/opi...ption-4390492/
Lone-Actor and Small Cell Terrorist Attacks
Another RUSI report on 'Lone-Actor and Small Cell Terrorist Attacks: A New Front in Counter-Terrorist Finance?' and in summary:
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As the threat from lone-actor and small cell terrorism evolves, this paper examines the financing of both disrupted and successful plots since 2000 in Great Britain, France and Australia. These plots often require minimal amounts of funding, making proactive identification through financial means challenging. Nonetheless, this paper highlights a number of key themes that warrant further investigation, showing the potentially disruptive role that financial intelligence can play.
Link:https://rusi.org/publication/occasio...-front-counter
Now to starting reading it, so may be a comment later.:wry:
"Hal" McMaster recommends this tome
Spotted this book last week and might one day get to read it: 'Threat Finance: Dismantling the lifeline of Organized Crime and Terrorism' by Shima D. Keane, published in 2013 by Gower. It is very expensive alas, so a library copy one day.
One review via the publisher I expect is by "Hal" McMaster:
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This book provides a lucid education on the often inconvenient realities of serious economic crime and identifies with clinical precision the reasons why it sometimes seems beyond the practical capabilities of the law to deal with it. What makes it so important, however, is Dr Keene's ability to mobilise the difficult thoughts that need to be thought if modern democracy is to survive the corruptive threats of crime and terror and their ability at the more sophisticated levels to exploit the modern accommodations of international finance and cyberspace with apparent impunity. The challenge, so vividly described here, can appear overwhelming; but the lasting influence left by this seminal work is the conviction that it will be more adequately met if some of the current cosy thinking on this subject in relevant fields of influence can be turned on its head.
Link to Amazon UK:https://www.amazon.co.uk/Threat-Fina...threat+finance
It is far cheaper via:https://www.amazon.com/Threat-Financ...threat+finance
Don't Follow the Money - it is not working
Professor Peter Neumann, Kings College London ICSR, has a scathing review of CT financing activity in Foreign Affairs 'Don't Follow the Money: The Problem With the War on Terrorist Financing'
Here is one passage:
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More than a decade and a half into the war on terrorist funding, policymakers must recognize the drawbacks of their current approach. Financial tools cannot stop lone attackers from driving cars into crowds, nor can they do much when groups such as ISIS hold territory and earn most of their income from within it. Policymakers need to acknowledge that the war on terrorist financing, as it has been conducted since 2001, has often been costly and counterproductive, harming innocent people and companies without significantly constraining terrorist groups’ ability to operate. Unless governments find ways to revolutionize how they share information with the financial sector, most of the current procedures for identifying suspicious transactions will continue to be little more than costly box-ticking exercises.
Link:https://www.foreignaffairs.com/articles/2017-06-13/dont-follow-money?
Quite a few sources cited appear here already.
Holy Money: where does the money to finance all of this come from?
Encountered a reference to this monograph (82 pgs) this week; it claims to be intelligence-based, using interviews rather than open sources and is not an academic study. The editor, Aimen Deen, is a former AQ jihadist and a short BBC profile in 2015 helps:http://www.bbc.co.uk/news/magazine-31700894
The author(s) explain:
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We have divided the study into three themes: theology, history and methodology. Since Jihadists such as al-Qaeda, the Taliban and their supporters consider fundraising for Jihad to be an act of worship just like Jihad itself, then comprehending the theological basis of Jihadist fundraising will add clarity and depth to the understanding of the concept. Historical background will illuminate the path that Jihadist finance took to evolve throughout the years. And the methodology of Jihad fundraising and then the movement of funds across borders will shed light on ingeniously simple methods adopted by Jihadist fundraisers to avoid detection by authorities worldwide.
Link:http://www.fived.org/images/files/Holy%20Money.pdf
I asked a SME for an opinion on its value:
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Yes, it very much is. Much of the reporting on this subject has been tactical and not very good tactical at that
Looking back at Northern Ireland
The link below is to a 2002 House of Commons report on Northern Ireland 'The continuing threat from paramilitary organisations' and the section on financing, even if dated it has value and note was after the 1997 Good Friday Agreement and an end to hostilities.
Link:https://publications.parliament.uk/p.../978/97806.htm
Financing of Recruitment for Terrorist Purposes
A report from the global financial crime group FATF and their explanation:
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Recruiting members and supporters is crucial to a terrorist organisation's survival. Each terrorist organisation has different recruitment techniques, depending on whether it is a large or small organisation, or a dispersed network of individuals. Using input collected from authorities within the FATF Global Network, this
report increases understanding of terrorist organisations’ funding needs to recruit members and supporters. In some cases, these funding needs are minimal. This report identifies the most common methods of recruitment used by terrorist organisations and terrorist cells, and the costs associated with these different methods and techniques of terrorist recruitment:
- Personal needs of the recruiter and the maintenance of basic infrastructure for the recruitment / facilitation network
- Production and dissemination of recruitment materials
- Payment for goods and services to facilitate the new recruits' early participation in the terrorist organization
- Financial incentives provided directly to recruits or for the hiring of mercenaries or civil experts
This report sheds a light on how terrorist organisations fund the recruitment of new members and supporters, from fast food restaurant ‘headquarters’ to financial incentives for new recruits, and will help authorities detect and disrupt these recruitment activities.
Link:http://www.fatf-gafi.org/publication...-purposes.html
Beyond Banking: Professor Neumann’s opening keynote address at “No Money for Terror”
A speech following up on Professor Neumanns published views. Here are two selected passages:
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To be more specific, I am convinced that, when it comes to countering terrorist finance, there has been an excessive, an exaggerated, an over the top focus on the formal financial sector.
In fact, the single most successful blow to ISIS’s finances was something that had little to do with what people typically associate with countering terrorist finance. It was an American military air strike against a cash depot of ISIS in Iraq. In a single day in January 2016, it destroyed an estimated 50 million dollars — nearly the same amount that had been frozen and confiscated in 15 years of countering terrorist finance through the international financial system.
Link:http://icsr.info/2018/04/beyond-bank...-summit-paris/
AML legislation is the least effective of any anti-crime measure, anywhere
Discovered today via a "lurker" a November 2017 submission to the Senate Judiciary Committee by an ex-US financial crimes investigator, which has some stunning quotes and this response from a contact immersed in this area:
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This should be compulsory reading for everyone engaged in law enforcement!
Link:https://www.judiciary.senate.gov/imo...0Testimony.pdf
It is seventeen pgs. long and is an easy read.
A Sharper Image: Advancing a Risk-Based Response to Terrorist Financing
A new RUSI paper and not opened here. The link has a short video and a summary, plus a link to the paper.
Link:https://rusi.org/publication/occasio...rist-financing