Global Terrorism Financing Report
August 2024
Hello Insight Monitor subscribers. Today we have another monthly terrorist financing report, covering all the terrorist financing news from the month of August. We hope you find this insightful — have a read, and share with a friend or colleague to help us grow our community. The news roundup is free to read for a short time, and then it will revert to behind a paywall.
North America
Rinaldo Nazzaro, the Russia-based leader of the neo-Nazi terrorist group The Base, is seeking to revive his organization's activities in the US ahead of the 2024 presidential election. Nazzaro is offering a $1,200 monthly salary to a US-based leader for his group. Nazzaro is seeking a leader with experience in fieldcraft, wilderness survival, and small unit tactics, and plans to fund the group through personal funds and cryptocurrency donations.
Canadian charities are accused of directly funding Hamas recruitment and fighter support through donations to Al Najah University and the charity Inash El Usra, among others. The article names four charities: the Canadian Palestinian Foundation, Hands for Charity, International Development and Relief Foundation (IDRF), and Medical Aid for Palestine.
Monty Bennet, publisher of the Dallas Express is funding lawsuits by the fascist New Columbia Movement (NCW) against anti-fascist groups in Texas. After a criminal trial acquittal, anti-fascist activist Chris “Big Tex” is now facing a civil lawsuit filed by the NCW. The New Columbia Movement promotes a blend of European fascism, authoritarian Catholicism, and American nationalism, advocating for a hierarchical society based on Christian morality and the subjugation of "subjugated peoples." The group has openly embraced anti-Semitic conspiracy theories and has rallied alongside neo-Nazi groups.
India's Central Intelligence Bureau (CIB) has accused Pakistan's Inter-Services Intelligence (ISI) of using Canada as a base to fund terrorist activities against India. The CIB report accuses the ISI of working with Khalistani groups and wanted gangsters from Punjab to raise funds for these operations.
A paratrooper at Fort Liberty, North Carolina, has been removed from the Army after being indicted on charges of weapons trafficking and lying about his association with a white nationalist group. Specialist Kai Nix allegedly sold at least two stolen firearms, but those weapons were not stolen from the Army. Nix is accused of lying on a federal application for a security clearance, claiming he had never been a member of a group dedicated to violence against the U.S. government. Prosecutors say he was a member of the Patriot Front, a white nationalist group known for its uniformed members and antisemitic rhetoric. Nix allegedly operated a Patriot Front account on Telegram.
The American Patriots Three Percent (AP3), a large militia, has been amassing funds and resources through community service projects, fundraising initiatives, and alliances with law enforcement officials. They have been using these funds and support to recruit new members, organize training exercises, and expand their operations.
South America
Venezuela has become a haven for Hezbollah, offering logistical support and fostering close ties. Hezbollah's involvement in the cocaine trade, particularly in Colombia, has allowed it to forge connections with various illegal armed groups. Hezbollah's activities in Venezuela have been linked to the Cartel of the Suns, a drug trafficking network within the Venezuelan military.
A U.S. court has ordered Chiquita Brands International to pay $1.7 billion in damages for its role in funding a Colombian terrorist group, the United Self-Defense Forces of Colombia (AUC). The lawsuit alleged that Chiquita paid millions of dollars to the AUC between 1997 and 2004 to protect its banana plantations from attacks by leftist guerrillas. The AUC was responsible for numerous human rights abuses, including murder, torture, and displacement. The court found that Chiquita's payments to the AUC constituted "material support" for terrorism, even though the company claimed it acted out of necessity to protect its employees and business.
Central and Southeast Asia
In the Philippines, Lucila Mabanan y Gabane was found guilty of attempting to finance terrorism and sentenced to a prison term ranging from four months to two years.
The Bangladesh government has banned Jamaat-e-Islami and its student wing, Islami Chhatra Shibir, under the Anti-Terrorism Act 2009. This decision comes in response to accusations of subversive activities and violence during recent student protests. The government cites evidence of the groups' involvement in killings, destructive acts, and incitement of terrorism.
Associates of the Islamic State in Afghanistan are seeking Sharia compliance reviews for their digital assets. Sharia law has historically opposed cryptocurrency, IS has created specialized channels including Umma Crypto and CryptoHalal to facilitate these transactions.
The Islamic State (IS) has evolved its funding strategies in Afghanistan, moving away from traditional methods like oil sales and ransoms. The group now relies heavily on extortion, taxation, and the exploitation of resources in areas under its control. IS has also established a network of businesses, including bakeries, shops, and even a mobile phone network, to generate revenue. The group uses businesses as fronts for money laundering and smuggling. IS also profits from the sale of looted goods, including antiquities and stolen vehicles.
India and Pakistan
Tarsem Singh, a key aide to Harwinder Sandhu alias Rinda and Lakhbir Singh alias Landa, was arrested by India’s National Investigation Agency (NIA) after his extradition from the United Arab Emirates (UAE). He was initially picked up in Abu Dhabi in November 2023 based on a red notice by Interpol. Singh was alleged to be involved in arranging and providing funds to India-based associates of Rinda and Landa and to have helped channel funds to the Khalistan Liberation Force (KLF) and International Sikh Youth Federation (ISYF).
Raoof Hasan, the information secretary of former Prime Minister Imran Khan's Pakistan Tehreek-e-Insaf (PTI) party, was arrested last month on charges of terrorism financing. The PTI claims these legal cases are part of a state-backed crackdown on the party, which includes bans on rallies and arrests of leaders and supporters. The government denies persecuting opposition parties.
India's National Investigation Agency (NIA) conducted raids on nearly 50 locations linked to the banned religious organization Jamaat-e-Islami (JeI) in Jammu and Kashmir. The raids were part of an investigation into alleged terrorism funding by the organization. The NIA alleges that JeI collected funds domestically and abroad through donations and used them for violent and secessionist activities for Hizb-ul-Mujahideen and Lashkar-e-Taiba through JeI cadres.
The U.S. has charged three individuals, including two Iranian brothers and a Pakistani national, for their role in smuggling Iranian weapons to Yemen's Houthi rebels. The weapons are believed to be Iranian-made advanced conventional weaponry and were intended for use in attacks on maritime shipping. The smuggling operation was intercepted by U.S. Central Command Navy forces in January 2024, resulting in the seizure of the weapons and the death of two Navy SEALs while boarding the smuggling vessel.
Middle East
The Islamic State (IS) is experiencing a resurgence in Syria, taking advantage of the withdrawal of Russian and Iranian troops due to conflicts in Ukraine and Gaza. IS is particularly active in the Central Desert region of Syria, where it has taken advantage of the Assad regime's weakened capacity to patrol the area to expand funding via smuggling and resource extraction operations.
Israel has confirmed the death of a senior Hamas operative, Nael Sakhel, in an airstrike on July 24th in the Gaza Strip. Sakhel was centrally involved in directing Hamas attacks in the West Bank for over a decade and was responsible for financing terrorism and supplying weapons to West Bank cells.
Islamic State in Afghanistan poses a significant threat to Europe and beyond, with its financial and logistical capabilities increasing in recent months. The group has intensified recruitment efforts and claimed responsibility for a deadly attack in Moscow, as well as a planned attack in Vienna.
The US Treasury Department has imposed sanctions on companies, individuals, and vessels involved in the shipment of Iranian commodities, including oil and liquefied petroleum gas (LPG), to Yemen and the UAE on behalf of a Houthi financial official. The sanctions target the network of Sa’id al-Jamal, who has been previously designated for supporting the Houthis and their illegal trading network to fund Iran's Islamic Revolutionary Guard Corps Qods Force (IRGC-QF). The sanctions also target Hong Kong-based Kai Heng Long Global Energy Limited for its role in shipping Iranian LPG worth tens of millions of dollars for Iran-backed Hezbollah. Israel has also sanctioned the tankers.
The United States has also imposed sanctions on two individuals and four companies for their role in facilitating weapons procurement for the Houthi rebels in Yemen. The sanctions target individuals and entities based in Yemen and China, who are accused of procuring dual-use equipment for the Houthis' advanced weapon systems. One company is Al-Shahari United Corporation Ltd, a Yemeni company with a branch office in Guangzhou, China. Maher Yahya Muhammad Mutahar al-Kinai, a Yemeni trader, was also sanctioned for his involvement in transporting dual-use equipment and components to the Houthis.
Weapons dealers in Yemen are openly selling firearms, including Kalashnikovs, pistols, grenades, and grenade launchers, on the social media platform X (Twitter). These dealers operate in areas controlled by the Houthi rebels. The weapons are offered for sale in both Yemeni and Saudi riyals, indicating a local market for these weapons. Some accounts feature the X blue check, which indicates a paid subscription and may indicate locally that the Houthis are directly involved in the online arms sales.
Iran is financing Hezbollah through the al-Qard al-Hasan Association (AQAH). AQAH operates as an unregulated bank, providing financial services to Hezbollah and local communities, and has grown into one of Lebanon's largest banks with billions of dollars in deposits. Hezbollah's financial network remains largely unchecked, with several countries in the region opposing efforts to crack down on its illicit financing. The Financial Action Task Force (FATF), a global money-laundering watchdog, is currently evaluating Lebanon's efforts to combat money laundering and terrorist financing, with a focus on Hezbollah's role in the country's banking system.
Africa
A Nigerian court has frozen 32 bank accounts belonging to individuals and companies allegedly linked to the recent #EndBadGovernance protests. The court alleges these accounts were used to finance criminal activities, including terrorism, treason, cyberbullying, and cyberstalking.
Europe
Colin McNeil, a far-right extremist from Leeds, has been sentenced to 11 years in prison for hosting two websites that spread far-right propaganda, glorified Hitler, and encouraged terrorism. McNeil's websites profited from user donations and hosted material that glorified terrorist attacks like the 2019 New Zealand mass shooter. The Crown Prosecution Service (CPS) stated that McNeil's actions were deliberate and that he knew there was a risk that terrorism would be encouraged by his websites. McNeil will spend seven years in custody and four years on an extended license and will be subject to a terrorist notification order for 30 years.
British far-right activists are using the US crowdfunding platform GiveSendGo to raise money for imprisoned white supremacists who were active in Scotland. Ninety-six UK campaigns were identified on GiveSendGo, raising approximately £180,000 for white supremacists, rapists, murderers, conspiracy theorists, and far-right influencers. Among those receiving funds are James Costello and Sam Melia, both convicted of inciting racial hatred, and James Allchurch, convicted of inciting racial hatred through offensive podcasts.
A 22-year-old Syrian man residing in Birżebbuġa, Malta, was arraigned and charged with terrorism-related offenses. The charges include setting up or participating in a terrorist training organization, inciting terrorist activity, financing, recruiting, or encouraging others to engage in terrorism, and receiving training in the use of explosives and poisonous substances. The man was also accused of traveling abroad to plan and prepare for a terrorist attack.
Two men, Jakeem Barrington Rose, and Ugnius Asmena, have been charged with aggravated arson in connection with an alleged attack on a Ukrainian-linked business in London. The attack is believed to have been carried out on behalf of the Wagner Group, a Russian mercenary group and proscribed terrorist organization in the UK. The case is the first in the UK to involve charges under the new National Security Act, which targets espionage and foreign interference. Another defendant, Dylan Earl, is accused of orchestrating the arson attacks and recruiting others to carry out the attacks on Ukrainian-linked businesses.
The parents of a Swiss Islamic State member are facing charges for allegedly sending over 50,000 francs to support their son in Syria. Prosecutors assert that these funds, transferred in multiple transactions from 2016 to 2019, were intended for financing terrorist activities. Court evidence showed pictures and messages that confirmed the son’s involvement in combat. Defense attorneys argue that the money was for their son's daily needs and to assist in evacuating his family from Syria as the situation deteriorated.
Turkish authorities have arrested 222 individuals suspected of involvement with the Kurdistan Workers' Party (PKK) in a series of operations across 36 provinces. The "Gurz-8" operations targeted individuals accused of various activities, including membership in the PKK, planning to join its ranks, spreading propaganda, financing terrorism, and acting as couriers. Authorities seized unlicensed firearms, shotguns, significant amounts of foreign currency, and digital materials during the operations.
A large number of arrests and operations suggests a significant level of activity related to terrorism financing and recruitment within Catalonia. In 2024, Spanish authorities have conducted 28 anti-jihadist operations, resulting in the arrest of 50 suspects. Catalonia has seen a disproportionate number of these operations, with 12 out of the 28 taking place in the region, specifically in Barcelona and Girona. Catalonia accounts for only 13.2% of Spain's population.
Longer Reads
The rise of the Neo-Nazi AfD Party in Germany - FRONTLINE
Radio and podcast feature on the rise and funding of the AFD party in Germany.
What is Hamas? - Council on Foreign Relations
Summary and profile of Hamas, including details about fundraising, governance, and leadership
Hezbollah Shadow Governance in Lebanon - Washington Institute
Analysis of the financing and governance of Hezbollah-controlled areas of Lebanon
The Death of an Islamic State Global Leader in Africa? - CTS At West Point by Austin Doctor and Gina Lingon
Discusses in depth the funding and governance mechanisms used by the Islamic State.
The Financial Future of the Islamic State - CTS at West Point by Jessica Davis
Projection and analysis of future Islamic State funding and expenditures.
White Nationalist Groyper Movement Spreading Transnationally - Global Project Against Hate and Extremism
Contains an extended description of a Groyper live-stream fundraiser
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