There are exemplary methods of terrorist financing. The terrorist and terrorist groups exploit legitimate trade transactions in their bid to collect and transfer funds to support their activities and to support the larger terrorist organization. They are involved in the complex and transnational nature of terrorist financing through trade, as terrorists and their financiers conduct various trade transactions in different countries so as to disguise the identity and origin of the funds they receive.
Importantly, it brings to the need to strengthen international co-operation and collaboration against terrorist financing, and to strengthen the monitoring of international trade transactions. Cases highlight the reliance of terrorist groups on not only criminal proceeds, but also on proceeds from legal sources in funding their operations.
This also explains the constant changing of communication channels such as mobile cards and mobile phones by the sect members to evade detection and arrest by security operatives. Furthermore, the terrorist financing cases brings to light the ease with which legitimate businesses can be established in countries for the ultimate purpose of financing terrorism.
Exemplary Methods of Terrorist Financing: Cases of Terrorist Financing
terrorist financing cases may be indicative of the operational vulnerabilities associated with the weaknesses in registration of companies and highlights how terrorists can use fictitious companies to raise and move funds to terrorists and terrorist organisations across national borders.
Below is a case reported as a of Terrorist Financing, in the region of Africa:
Case 1
Mr T, a confirmed member of Boko Haram, was apprehended by security operatives when conducting surveillance on possible targets of attack in Abuja. Upon interrogation, Mr T revealed that one of the ways through which Boko Haram funds its activities is by purchasing and sending items to its members in other locations. These items are sold at inflated prices and the proceeds are used to finance the activities of the terrorist organisation, including renting apartments and procuring Improvised Explosive Devices (IED) materials for their operations.
Case 2:
In 2011, security operatives apprehended Mr. H, a member of Boko Haram and owner of a Nigerian telecommunications company, in northern Nigeria. Upon interrogation, he confessed to using part of the profit from his business to support the activities of Boko Haram. He also confessed to supplying pre-registered Subscriber Identity Module (SIM) cards and mobile phones to the group.
Final Thoughts
Terrorist financing refers to the means and methods used by terrorist organizations to fund their operations. This money can come from legitimate sources, such as business profits and charitable organizations, or from illegal activities such as weapon, drug, or human trafficking, or kidnapping.
