Terrorists rely on various methods of terrorism financing when they need funds to carry out their vicious activities. Funds secured for terrorism financing may not necessarily be illegitimate.
In this infographic, we will discuss the stages involved in terrorism financing and how these funds are raised and used for the purpose of such activities.
Raising Funds
The first stage of terrorism financing is where terrorist groups raise funds to support their activities and goals. The funds for terrorism financing are sourced through both legal and illegal means. These means can include either of the following:
- Charities and NPOs, as they are cash-intensive, trusted by the public and have access to financial resources.
- Self-funding by foreign terrorist fighters through sources such as an individual’s salary, loans from banks and family support.
- Natural resources like gas, oil, gold, diamond or any other precious metals or wildlife.
Such locations can be beneficial in not only securing precious resources but also recruiting individuals for their programs.
Storing Funds
During the process of ‘Terrorism Financing,’ accumulated funds are stored until they are required for further use. These funds can be parked in cash or high-value assets that can be transferred easily. Cryptocurrency is a new form of asset misused by terrorists for storing funds.
Moving Funds
Once the funds are stored, they are moved to specific locations or regions depending on their program requirements and demand. Funds are moved through the financial system, such as banks, through physical cash movement or movement of commodities like gold, or through integration with the international trade flow.
Using Funds
Once the funds that were stored are moved to their required destination, they are used to facilitate unethical practices and terrorist acts. These funds are directed towards operating terrorist organisations, purchasing arms and ammunition, recruitment, and covering the overall expenses to promote their ideologies.
Combatting Terrorism Financing
Terrorism financing is a multifaceted process. It is important to be aware of the methods used in raising, storing, moving, and using funds to aid terrorist operations to make sure that you are not a part of the process by contributing indirectly to these organisations.
