Terrorist Funding and Countermeasures
One way that terrorist organizations fund their actions is through Fundraisers. These terrorist organizations solicit money from a range of donors. The main donors are based in the Gulf area, mainly Saudi Arabia, but other donors also exist outside the Muslim regions in countries across the world. Some of these donors have been fully aware of the final destination of their money; others were not. These funds also come from corrupt employees of charitable organizations, in particular during the holy month of Ramadan. Fundraisers have sometimes used legitimate charitable organizations; in other cases they have used front organizations and legitimate businesses to provide cover for their activity. Another way terrorist organizations fund their actions is through Charitable Organizations. Charities have certain characteristics that make some of them particularly susceptible to manipulation for the financing of terrorism. The terrorist organizations strategy has been to infiltrate employees in charities to divert money from the charities' legitimate humanitarian or social programs towards its own illicit activities. In a number of countries, these organizations function outside the scrutiny and supervision of state authorities. It has proven difficult to shut them down completely, even in cases where they have been investigated and accused of financing terrorism. A third and final way terrorist are able to receive funding is through Offshore Entities and Companies. “Terrorist groups have used commercial companies to finance itself as well as to transfer funds. For Bin Laden, Barakaat was a suitable instrument for making cash transfers; he had invested in its telecommunications network. Barakaat acted as a source of financing and arranged cash transfers for him. Its owners channeled millions of dollars every year from the USA to Al-Qaeda or its associates. Barakaat also managed, invested and...
Please join StudyMode to read the full document