Throttling terror financing

And within days of the IS fanatics who struck Paris with multiple co-ordinated terror attacks, the Russian President, Vladimir Putin, disclosed at the just ended G20 summit that the terrorists were receiving funding from at least 40 countries including some G20 nations

At the just ended G20 summit Narendra Modi identifying terrorism as one of the biggest threats to the free world, stressed on the necessity to stop terror financing on an urgent basis. And within days of the IS fanatics who struck Paris with multiple co-ordinated terror attacks, the Russian President, Vladimir Putin,   disclosed at the G20 summit that the terrorists were receiving funding from at least 40 countries including some G20 nations. Financing of terrorism is indeed a cause for great concern. There is hardly any doubt that ISIL has to be defeated not just militarily but even more importantly on the ideological battlefield, by offering a compelling counter-narrative to the extremist ideology that unfortunately has some appeal to disaffected youth across the globe. And the roots of terror financing must be identified and actions taken to stop the flow. However it is also true that it is easier said than done. Despite heightened efforts to track terrorist financiers, the vastness of the modern financial system means government officials often find themselves looking for the proverbial needle in the haystack.
More than $140 million in terrorists' assets have been frozen across some 1,400 bank accounts worldwide, but experts say terrorist groups have become increasingly adept at eluding detection through use of cash, sophisticated launde­ring operations, or legitimate front companies. Donating to charities and informal money-transfer centres, have also compoun­ded the difficulty in tracking down terrorist financial links. Experts on terrorist financing, say the largest source of terrorists' income is the illicit drug trade. Many terrorist groups have supported themselves through other illegal commerce as well. Terrorist networks transcend national boundaries and improving international cooperation is essential. There is a need to establish an international body dedicated to information-sharing regarding terror financing. If groups like ISIS can fill their coffers, run economies and consolidate their hold on power, the world may be facing a increasingly dangerous brand of global terrorism.
Cutting off financing for terrorism is an extremely difficult task. Many of the charities suspected of supporting al-Qaida and other terrorist outfits were shut down, simply reopened in a matter of weeks under different names. Also instead of relying fully on national and multilateral regulatory tools, the focus must shift to developing targeted human intelligence. No regulation can deter or detect small sums of money going to individuals. The world leaders must also explore ways to harness the power of the private sector to deter and disrupt terrorism financing,  particularly  financial institutions and private parties are critical to thwarting non-state actors' use of the financial system for terrorism financing.

Throttling terror financing

And within days of the IS fanatics who struck Paris with multiple co-ordinated terror attacks, the Russian President, Vladimir Putin, disclosed at the just ended G20 summit that the terrorists were receiving funding from at least 40 countries including some G20 nations

At the just ended G20 summit Narendra Modi identifying terrorism as one of the biggest threats to the free world, stressed on the necessity to stop terror financing on an urgent basis. And within days of the IS fanatics who struck Paris with multiple co-ordinated terror attacks, the Russian President, Vladimir Putin, disclosed at the G20 summit that the terrorists were receiving funding from at least 40 countries including some G20 nations. Financing of terrorism is indeed a cause for great concern. There is hardly any doubt that ISIL has to be defeated not just militarily but even more importantly on the ideological battlefield, by offering a compelling counter-narrative to the extremist ideology that unfortunately has some appeal to disaffected youth across the globe. And the roots of terror financing must be identified and actions taken to stop the flow. However it is also true that it is easier said than done. Despite heightened efforts to track terrorist financiers, the vastness of the modern financial system means government officials often find themselves looking for the proverbial needle in the haystack. More than $140 million in terrorists assets have been frozen across some 1,400 bank accounts worldwide, but experts say terrorist groups have become increasingly adept at eluding detection through use of cash, sophisticated laundering operations, or legitimate front companies. Donating to charities and informal money-transfer centres, have also compounded the difficulty in tracking down terrorist financial links. Experts on terrorist financing, say the largest source of terrorists income is the illicit drug trade. Many terrorist groups have supported themselves through other illegal commerce as well. Terrorist networks transcend national boundaries and improving international cooperation is essential. There is a need to establish an international body dedicated to information-sharing regarding terror financing. If groups like ISIS can fill their coffers, run economies and consolidate their hold on power, the world may be facing a increasingly dangerous brand of global terrorism. Cutting off financing for terrorism is an extremely difficult task. Many of the charities suspected of supporting al-Qaida and other terrorist outfits were shut down, simply reopened in a matter of weeks under different names. Also instead of relying fully on national and multilateral regulatory tools, the focus must shift to developing targeted human intelligence. No regulation can deter or detect small sums of money going to individuals. The world leaders must also explore ways to harness the power of the private sector to deter and disrupt terrorism financing, particularly financial institutions and private parties are critical to thwarting non-state actors use of the financial system for terrorism financing.