Running Head: TERRORISM FINANCING
Terrorism financing involves offering financial aid to terrorist organizations or groups.
Terrorism financing offers funds to carry out terrorist activities. The financing may include funds
from legal sources like individual donations and business profits and charitable organizations.
However, most of the sources of these funds come from illegal sources such as weapon
smuggling, drug cartels, fraud transactions, kidnapping, and extortion (Bantekas, 2003).
Some nations hold a list of terrorist groups and enforce money laundering laws which
are used to fight the financial aiding for those illegal organizations. Criminal groups are used as
a channel to launder money while making a huge amount of profit. They are involved basically
in profit-making crimes. These organizations are formed in order to utilize criminal opportunities
in a well organized and large scale approach.
The results of the operations of the illegal organization are that it yields a large amount of
profits within a short time alongside several problems. The cash generated from these activities
is hard to utilize or deposit in banks. The expenditure of this money becomes difficult because of
the fear of raising suspicion amongst the authorities and the public. Money laundering is not
distinct from terrorism as it may be seen.
The objective of money laundering is to give a new face to originally dirty money in
order to make it taxable and curb suspicion. Terrorists tend to mask their financial resources in
order to evade the critical examination by authorities. The Financial Action ...