Global Terrorism Financing Report
Part 1 for November 2024
Hello Insight Monitor subscribers! Today we’ve got our Global Terrorism Financing Report for you, where we summarize all the news and issues in the world of terrorist financing. There was so much news in November that we’ve had to split this into two newsletters — we’ll send out the second one next week. Today, we’re looking at terrorism financing in the United States, India, Uzbekistan, the Philippines, India, Pakistan, and more! Remember, these news roundups are free to read for a short time, after which they go behind the paywall. To have permanent access, become a paying subscriber and support our work:
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North America
Tether, a leading stablecoin issuer, has been accused of terrorism financing and other criminal activities. The CEO of Tether, JL van der Velde, has challenged these allegations, stating that the company has robust systems in place to prevent illicit activities. Critics argue that Tether's USDT, a stablecoin pegged to the US dollar, is being used to launder money and finance terrorism due to its anonymous nature. However, van der Velde insists that Tether complies with all relevant regulations and has implemented strict Know Your Customer and Anti-Money Laundering procedures.
Syed Aman, a US citizen, was arrested at JFK Airport while attempting to travel to Syria to join ISIL. Aman had sent money to someone he believed was an ISIL operative, a direct contribution to ISIL's fundraising efforts. His attempts to book flights to the Middle East were initially blocked, but he successfully booked a flight to Qatar, intending to travel onward to Syria.
The Bahamas' Financial Intelligence Unit (FIU) has uncovered evidence of individuals using digital assets and cryptocurrencies to finance terrorism. The FIU's reports of suspicious transactions have shifted from primarily drug trafficking to cryptocurrency-related terrorism financing.
The US Treasury Department sanctioned the Al-Qatirji Company, a Syrian conglomerate, for generating hundreds of millions of dollars in revenue for Iran's IRGC-QF and the Houthis. This revenue was generated by selling Iranian oil to Syria and China. The Al-Qatirji Company's oil exports, worth hundreds of millions of dollars, primarily fund the IRGC-QF and its terrorist proxies.
FinCEN issued a supplementary alert focusing on Hezbollah / Hizballah. Hezbollah generates revenue through illicit activities including oil smuggling, money laundering, and counterfeiting. Funds are laundered through businesses in various countries, utilizing legitimate sectors like real estate and import/export. The group engages in trade-based money laundering, transferring goods like electronics and using bulk cash smuggling. Hezbollah also established its own money transfer businesses and uses unlicensed services to move funds.
Mahmoud Al Hafyan, a Syrian national, is charged with major fraud against the US government, diverting over $9 million US in US-funded humanitarian aid. This aid, intended for Syrian civilians, was illegally rerouted to the Al-Nusrah Front, a terrorist organization affiliated with al-Qaeda. Al Hafyan, head of an NGO, managed the distribution of $122 million US in aid from 2015-2018. He allegedly sold millions of US dollars worth of food kits meant for civilians on the black market to Al-Nusrah Front commanders.
A potential loosening of US cryptocurrency regulations under a Trump presidency could significantly benefit extremist groups. The Base, a neo-Nazi group under FBI investigation, openly solicited cryptocurrency donations for paramilitary training, including equipment purchases like AR-15 blank firing adapters, solar panels, and thermal optics. Their fundraising efforts utilize Bitcoin and Monero, a privacy-focused cryptocurrency, to avoid detection. The group's leader previously offered a second-in-command $1,200 US per month in crypto for training activities in the US, suggesting successful prior fundraising. Experts warn that reduced crypto regulation would facilitate easier fundraising and money movement for extremist organizations.
Central and Southeast Asia
Eleven individuals in Uzbekistan were sentenced for supporting Tawhid wa Jihad Katibah, receiving prison terms ranging from six to twelve years. In 2023, two members transferred $3,000 US to a contact in Syria. The group used coded meetings disguised as social gatherings to plan their activities and recruit new members. They used Telegram for communication and coordination, reporting to a group leader. Charges included financing terrorism, subversion, and distribution of materials threatening public safety.
The UN Special Rapporteur condemned the Philippines for the delayed trial of journalist Frenchie Mae Cumpio, who faces charges of illegal firearm possession and financing terrorism. Cumpio, director of a media outlet focusing on marginalized communities, was arrested in 2020 and charged with financing terrorism based on funds found in her office. Reporters Without Borders (RSF) alleges the firearm evidence was planted, and that the charges are part of "red-tagging"—labeling journalists as terrorists to silence dissent.
India and Pakistan
The Delhi High Court granted bail to Javed Ali, who has been accused of raising funds for Lashkar-e-Taiba (LeT). The court cited Ali's prolonged pre-trial detention since November 10, 2019, and the slow pace of the trial. The prosecution's case relied on allegations that Ali sent money through Hawala channels from Saudi Arabia to India in 2017. The National Investigative Agency (NIA) alleges these funds were used to support LeT's reconnaissance and recruitment efforts targeting soft targets. The court noted a lack of substantial evidence linking Ali directly to providing funds to the LeT operative, Sheikh Abdul Nayeem.
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The NIA arrested Muneer Ahmad Banday, a key figure in a 2020 Kashmir narco-terrorism case. Banday, who evaded arrest for four years, played a central role in a conspiracy involving Pakistan-based terrorist groups. The groups used drug trafficking to raise funds for terrorism in Jammu & Kashmir and other parts of India. Initial seizures in 2020 included 2 kg of heroin and Rs 20 lakhs ($26,000 US) in cash, later increasing to 15 kg of heroin and Rs. 1.5 crores ($130,000 US).
The Eurasian Group has identified over 600 individuals linked to global financing networks supporting terrorism in 2023. The group's chairman emphasized that identifying these financiers is crucial for combating terrorism. Eurasian Group chairman Yuri Chikhanchin warned about the rising use of cryptocurrencies in terrorism financing and corruption. He highlighted how criminals exploit technology, using cryptocurrencies to move money and conceal ill-gotten gains, including funding terrorist attacks and enriching corrupt officials.
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