Terrorist Financing

William Vlcek

Description

This clear and rigorous examination of the international efforts to combat the financing of terrorism is suitable for a range of courses in international relations, politics and global political economy. It provides a comprehensive examination of the post-9/11 efforts to counter financial support for terrorist actors, including the more recent challenges of non-cash payment technologies as well as how to combat the financing of terrorism in regimes where territories and populations are controlled, as in the case of Islamic State.

1. Foundation and origins

2. Terrorist financing in the twentieth century

3. In the aftermath of 9/11

4. Collective action against terrorist financing

5. Making CFT global

6. Dealing with new payment technologies

7. Islamic State and terrorist finance

8. Conclusion

Sujets

• Political Process
• International Relations
• Political Science
• ISIS
• Isis (disambiguation)
• General officer
• Political corruption
• Terrorism
• Politics
• Image and Scanner Interface Specification
• LAW
• General
• CFT
• 9
• 11

Informations

• Publié par: Agenda Publishing
• Date de parution: 13 octobre 2022
• Nombre de lectures: 1
• EAN13: 9781788215305
• Langue: English

Extrait

TERRORIST FINANCING
Finance Matters
Series Editors: Kathryn Lavelle, Case Western Reserve University, Cleveland, Ohio and Timothy J. Sinclair, University of Warwick
This series of books provides advanced introductions to the processes, relationships and institutions that make up the global financial system. Suitable for upper-level undergraduate and taught graduate courses in financial economics and the political economy of finance and banking, the series explores all aspects of the workings of the financial markets within the context of the broader global economy.
Published

Banking on the State: The Political Economy of Public Savings Banks
Mark K. Cassell
British Business Banking: The Failure of Finance Provision for SMEs
Michael Lloyd
Credit Rating Agencies
Giulia Mennillo
The European Central Bank
Michael Heine and Hansjörg Herr
Quantitative Easing: The Great Central Bank Experiment
Jonathan Ashworth
Regulating Banks: The Politics of Instability
Andrew Whitworth
Sovereign Wealth Funds: Between the State and Markets
Adam D. Dixon, Patrick J. Schena and Javier Capapé
Terrorist Financing
William Vlcek
TERRORIST FINANCING
WILLIAM VLCEK
© William Vlcek 2022
This book is copyright under the Berne Convention.
No reproduction without permission.
All rights reserved.
First published in 2022 by Agenda Publishing
Agenda Publishing Limited
The Core
Bath Lane
Newcastle Helix
Newcastle upon Tyne
NE4 5TF
www.agendapub.com
ISBN 978-1-78821-527-5 (hardcover)
ISBN 978-1-78821-528-2 (paperback)
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Typeset by Newgen Publishing UK
Printed and bound in the UK by TJ Books
CONTENTS
Preface and acknowledgements
Acronyms and abbreviations
1. Foundations and origins
2. Terrorist financing in the twentieth century
3. In the aftermath of 9/11
4. Collective action against terrorist financing
5. Making CFT global
6. Dealing with new payment technologies
7. The financing of Islamic State
8. Reflections on combatting terrorist financing
Notes
References
Index
PREFACE AND ACKNOWLEDGEMENTS
The aim of this book is to provide an overview of terrorist finance in the twenty-first century and the measures employed to identify and obstruct money intended to support acts of terrorism. Terrorist financing has been a concern and topic of analysis for a large number of policy-makers and academics throughout the past two decades (and longer for a few specialists). In large part, the attention has been focused on the group or groups that represented a threat to a specific country. When the terrorist threat is local, and thus a national problem, this concern is understandable. Yet the dynamic changed at the end of the twentieth century with the emergence of a more transnational form of terrorism. In turn, the states affected by transnational terrorist groups turned their efforts towards an international campaign against terrorist financing as one modality for suppressing and preventing acts of terrorism. The initial result was the construction of mechanisms to combat the financing of terrorism (CFT) suitable for operation in the financial systems of developed economies. In time the international guidance evolved to offer some flexibility for implementation that recognized the different circumstances operating in the financial systems of a developing economy. A similar distinction can be found in the literature on terrorist finance, where a large part remains concerned with the financial systems of developed economies and a small portion analyses the impact of CFT measures on economic development, financial inclusion and the limited reach of formal finance in the developing economies.
The following chapters are the product of close to 20 years studying global finance and seeking to understand the efforts taken by national and international authorities to regulate and govern it. Much of the focus for this activity is located at the intersection of finance and security, and terrorist finance has been one of the central concerns. This text builds on research published in a number of edited books and academic journals, and it follows the general structure developed for a fourth-year undergraduate module at the University of St Andrews that I taught between 2009 and 2012. To access the publications and guidelines of the Financial Action Task Force and United Nations Security Council, mentioned throughout the text, please see the References section, which provides the general web addresses for these organizations through which the various publications can then be found.
I want to thank Agenda Publishing and Alison Howson for this opportunity to share my perspective on the subject. Over the past two decades a number of colleagues have commented on my work and my thanks to all of them: Javier Argomaniz, Faye Donnelly, Rikard Jalkebro, Yee Kuang Heng, Rashmi Singh, Jorge Lasmar, Yannick Veilleux-Lepage, Christopher J. Hill, Karen E. Smith, Andrew Neal, Didier Bigo, Anthony Amicelle, Oldrich Bures, Christian Kaunert, Sarah Léonard, Raphael Bossong, Anja Jakobi, Mark Nance, Nikos Passas and Jason Sharman. Because this covers a long time period, I apologize to anyone that I may have missed. Faye Donnelly has been especially generous with her time, reading the entire manuscript and providing detailed feedback on it. All the same, any error that may be present here is solely my responsibility.
ACRONYMS AND ABBREVIATIONS AML Anti-money laundering ACH Automated Clearing House BMPE Black Market Peso Exchange CDD Customer due diligence CFT Combatting/Countering the financing of terrorism CIA Central Intelligence Agency CoE Council of Europe CTC Counter-Terrorism Committee CTED Counterterrorism Committee Executive Directorate CVV Card verification value DNFBPs Designated non-financial businesses and professions ESAAMLG Eastern and Southern Africa Anti-Money Laundering Group ELN Ejército de Liberación Nacional EU European Union FARC Fuerzas Armadas Revolucionarias de Colombia FATF Financial Action Task Force FBI Federal Bureau of Investigation FinCEN Financial Crimes Enforcement Network FIU Financial intelligence units FSRB FATF-style regional body GDP Gross domestic product GDPR General Data Protection Regulation GSMA Groupe Spéciale Mobile Association ILO International Labour Organization IMF International Monetary Fund INLA Irish National Liberation Army IRA Irish Republican Army IS Islamic State ISIL Islamic State in Iraq and the Levant ISIS Islamic State of Iraq and Syria IVTS Informal value transfer service KYC Know your customer LTTE Liberation Tigers of Tamil Eelam MMO Mobile money operator MSB Money service business NCCT Non-cooperative countries and territories NGO Non-governmental organization NORAID Irish Northern Aid Committee NPO Non-profit organization POS Point of sale RBA Risk-based approach RUSI Royal United Services Institute SAR Suspicious activity report STR Suspicious transaction report SDG Sustainable Development Goal SEPA Single Euro Payments Area TFTP Terrorist Finance Tracking Programme UN United Nations USA PATRIOT Uniting and Strengthening America by Providing Act  Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001
1
Foundations and origins
The United Nations (UN) opened the treaty entitled “International Convention for the Suppression of the Financing of Terrorism” for signature in 1999. 1 Over a year later, on 10 September 2001, a grand total of four states had signed and ratified the treaty: Botswana, Sri Lanka, the United Kingdom and Uzbekistan. The events of 11 September 2001 and the response, individually and collectively, to the terrorist attacks on New York City and Washington, DC changed the need and utility for this particular UN Convention. Financial surveillance and the tracking of the economic activity of individuals and groups would be massively increased as a leading element of the new “war on terror”. Measures to combat the financing of terrorism (CFT) would be crafted and all countries would be expected to introduce them to their national legal systems. 2
This book seeks to provide you with an understanding of why there were so few ratifications of the UN Convention on terrorist financing in September 2001 as compared to September 2002. The Convention entered into force on 10 April 2002 following the 22nd ratification of it. Further, you will gain an understanding of the development and evolution of the global regime to combat terrorist financing in the first two decades of the twenty-first century. This chapter prepares you with several background concepts to establish a foundation for the material covered in the remaining chapters. The next section begins with a definition of terrorism as a political act, a necessary prerequisite for defining terrorist finance. But first there is a section developing the concept of money that is implied in the activity of terrorist financing. Following the definition of terrorist financing, drawn from the UN Convention, the chapter offers some background on the Financial Action Task Force (FATF), the international organization created to address money laundering by illegal drugs traffickers. It would be drafted into international efforts against terrorism in 2001, and attempt to apply its existing expertise developed to counter money laundering to terrorist financing. The final section of this chapter points towards the topics covered in each of the remaining chapters of the book.
Definitions
A constant element present in many discussions of terrorism includes the debate on its definition (English 2016 : 136–7). This book is no different in placing the issue of definition in the first chapter. A central point of disagreement in the definition is over who is in and who is out, which group is named as being a “terrorist” group and which group is not named as suc