GPM426 Terrorist Financing and Resourcing

In the aftermath of the Afghan War, Al Qaeda emerged as a military network to help Muslims battle the Soviet Union; members were recruited across the Islamic world. When the Soviets retreated from Afghanistan in 1989, they scattered but continued to condemn what their leaders called oppressive Islamic governments and the presence abroad (i.e. the United States) in Islamic countries (Burke, 2021). The Sudanese party finally restored its headquarters in Afghanistan at the beginning of the 1990s (c. 1996) under the auspices of the Taliban militia. The extremist Al Qaeda network and its sources of financing continue to be surrounded by much confusion and suspense. Today we know much more about their financial instruments and arrangement than we did three years ago, but we have never described much about them. However, few evidences could be considered as just speculation is many of what we observe.

The main aim of this particular paper is to talk about along with the analysis and the identification of the financing and resourcing strategy used by the most ridiculous terrorist organization which is formally known as Al Qaeda which was initially formed in order to aid the Muslims to fight the Soviet Union, which later on changed their objective to become the most notorious terrorist organization that has been ever seen by the entire world (Gomes & Mikhael, 2018). Assessing the ways in which this particular organization works and carries out their terrorist attacks will be assessed based on their financing and resourcing strategies.

This paper will be focused on the strategies that gets implemented by the terrorist organization and not only the mechanism that the elected terrorist group uses in order to carry out a successful terrorist attack under any circumstances. Adding to that, in order to provide viability to the paper and so that this study could be later on used for better understanding of the students, it will provide an extensive insight into the reasoning that could be identified on the basis of the decision made by the organizations in order to pursue the specific funding avenue, that will be discussed in this particular paper. The discussion will be done elaborative so that the readers have a better understanding of the entire concept that will be highlighted in this paper.

Goals

In order to have a better understanding of the financing and resourcing strategies of the Al Qaeda, it is crucial to understand the main goals and the objective of the organization. The main reason behind financing and resourcing of the terrorist group is based on the fact that they have to carry their mission and the objectives for which the organization stands. Hence, in order to assess the strategies implemented by the organization for their financing and resourcing purpose, getting a deep insight into their motive and purpose becomes extremely crucial. Al Qaeda's primary objective was to expel the US forces by force from Saudi Arabia (and elsewhere on the Saudi Arabia) and Somalia. Al-Qaeda members released fatwahs that said such attacks were both correct and appropriate (Gray, 2015). The rule on Islamic law was made public.

Al Qaeda existed and have functioned alone and also under the guidance or with collaborative approach of several extremist groups, including: the Egyptian Muslim Jihad, headed by Ayman al-Zawahiri, and at times the Islamic Group (also known as "el Gamaa Islamia" or simply known as the "Gamaa't"). They were successful in creating number of jihad groups in several countries like Sudan, Croatia, Egypt, Saudi Arabia, the Philippines, Yemen, Somalia, Eritrea, Algeria, Djibouti, Afghanistan, Pakistan, Bosnia, Albania, Tunisia, Lebanon, Tajikistan, Azerbaijan, and the Kashmiri region of India and the Chechnyan region of Russia (Gardner, 2021). Sources have also established and tested that al Qaeda has managed to retain cells and staff in a variety of countries, including Kenya, Tanzania, the UK, Germany, Canada, Malaysia and the United States, to support its operations.

The factor that makes Al Qaeda the most notorious and the most successful terrorist organization is that they have extremely well maintained command and control structure which comprises of consultation council which in their terms known as the majlis al shura. The function of this council is to discuss and approve the major undertakings of the organization which includes most of the terrorist operations. Not only was a council, but also at the same time it has been stated that Al Qaeda comprised of a “military committee” and their primary function to consider and approve all the military matters (Ross & Barr, 2021). This formal structure and strict control over each section of the organization by the top command have assured their survival and if it could be termed as their legacy.

Usama bin Laden and Al-Qaeda have established alliances with the National Islamic Front in Sudan and members of the Iranian government, and their affiliated Hizbaala terrorist organisation in order to work together against their perceived common enemies in the West, especially in America (JOSCELYN, 2021).

Dynamics of Terrorist Organization Funding

Based on the extensive research done on the topic, it could be easily identified that, not only Al Qaeda but all the major terrorist organization has a certain dynamics of their funding and resourcing and they are if not identical, quite similar in their approaches. It is a fact that the terrorism networks has been employing both legal and illegal ways to in order to fund their activities. This could include multiple factors such terror attacks, propaganda, recruitment and even military training. The Anti-terrorist finance act in Indonesia states that terrorist funding and resourcing applies to the known funds or assets that are legitimately claimed that are used, indirectly or indirectly, for activities connected to the organisation or individual's terrorism. Terrorist funding could primarily divided into three particular and crucial stages without which the process would not be completed (Levy & Yusuf, 2019). The entire process has been divided into three unique stages for the better functioning of the entire without any major issues to tackle. The three stages are fund raising, fund moving and final the fund using.

Fund Raising

The Commission on 9/11 noted a variety of financial aid providers that are interested in collecting, transferring and maintaining the money al-Qaeda uses for upkeep, logistics and operating needs. They received support mostly from donors in the Gulf, but also from countries all over the world. They employed counterfeit and lawful charitable organisations, offshore corporations and legal companies. Al Qaeda has also developed an important finance network in Southeast Asia and funding outlets in Europe, Africa and Asia. Some of them have been caught or nominated, but many are still unknown. Some were designated by the US Treasury and the Al Qaeda and Taliban Sanctions Committee of the United Nations. In certain nations, their funds are subject to frozen orders, although many stay open and resume their financial and commercial activities.

The arrest of, among other senior Al Qaeda leaders, Sheik Saiid al-Masri, Abdul Rahim Riad and Khalid Sheik Mohamed was a grave blow to Al Qaida's financial network. It is confirmed that it has provided names and information to identify other facilitators and sources of funding. Account was also taken of credible intelligence and guidance from previous Al Qaeda financial actors such as AlFaruq and Ahmed Fadl, who collapsed in the middle of the 1990s with Al Qaeda. But it did not suffice to get out of business to know al Qaida's financing facilitators' titles (Bonner, 2021). There is also some evidence that Al Qaeda was able to replace them nearly one by one with unknown individuals or organisations. Al Qaeda support is on the rise again in some accounts. Saudi Arabia has been strongly critical of the continued conduct of business in Saudi Arabia, by some known Al Qaeda financiers, such as the birthplace Osama bin Ladin, Mohammed Jamal Khalifa, and Wael Hamza Julaidan, all of whom were very involved in collecting Al Qaeda funds.

We think that the origins of the financial network of Al-Qaeda are based directly on the comprehensive recruiting and funding networks developed in Afghanistan to finance anti-Soviet jihad activities. These networks used Muslim charities and companies all over the world extensively. As the Al Qaeda grew and became a militant international movement, a number of international Muslim charities were founded or infiltrated that could be used to raise and cover money (Martin & Solomon, 2017). These funds have been used by these charities in support all of Al Qaeda's legitimate humanitarian aid and operations.

This included funding for the creation and preservation of new militant Islamic centres, spreading virulent theology of Al Qaeda and opposing Western culture and values. This centres have offered an opportunity to Al Qaeda in doctrine and recruit extensively across the globe. They also helped collect money for the cause of Al Qaeda and encouraged them (Neumann, 2017). In addition, Youssef and Idris Nasreddin are still willing, from their headquarter in Campione of Italy and Rabat, Morocco, to exploit funds identify as Al Qaeda financiers from the U.S. Treasury Department and the United Nations. Though Saudi Millionaire Yassin Al-Qadi in the United States has been charged with financing al-Qaeda through his charity Muwafaq, he is continuing to operate a Swiss and Saudi business empire.

Fund Moving

This part of the paper will talk about the ways in which the funds that were collected by the terrorist organization were moved or laundered. The funding and the resources were moved in a systematic way, so that the organization did not has to face any major issues. Al Qaeda has used many financial operations to manage the international banking community right from the beginning. Osama bin Laden and other Al Qaeda officials and their fellow man In Europe, in North America and in other global banking places, financial facilitators of Al Qaeda held bank account. Banks have raised their alertness to potential terrorist financing activity since the bombing at the Embassy in 1998 and again following attacks on 9/11/2001.

Freezing orders were placed for assets recognised as belonging to and affiliated with Al-Qaida and the Taliban. Banks have also been ordered to terminate transactions linked to Al Qaeda and notify to local authorities all suspicious transactions (Chelin, 2020). There is still cause to think, however, that well-stocked financiers and existing charities and enterprises with al-Qaeda connections continue to use foreign banking services. They are able, by triangulation and intermediation, to cover these transactions.

Facilitators for Al Qaeda have also worked on creating their own networks to manage and conceal financial transfers. These two networks are excellent examples of such operations and are unlocked by prosecutors, the al Barakat and the al Taqwa. Ahmed Nur Ali Jim'ale founded Al Barakat in Mogadishu and set up its Dubai headquarters. Its main operations include operating a telecoms service, a bank and a money transfer system or Hawala system, in Somalia and many other countries. The U.S. Treasury Department charged the organization with cutting charges on transfers submitted by expatriate Somalis to fund militant acts of Al Qaeda. The hawala service of Al Barakaat is allegedly extended to around forty nations. It has been reported that some $140 million in transmission payments are done by Al Barakaat per year. Service charges varied between 2% and 5% (Vlcek, 2018). This will raise millions in profits for Al Qaeda. Al Barakaat has since made available a discreet transmission and distribution platform for Al Qaeda funds, as well as earnings for Al Qaeda. Unregulated, most hawala operations.

Few documents are maintained and transactions are processed informally and, in most cases, without real monitoring. It provides Al Qaeda a perfect way for those who provide it with funds to handle its transfers. Many hawhalar banks in Asia and the Middle East are also very well associated. Their transfers raising few questions are used to resolve hawalis, thus covering the originator and the final receiver of the transactions. Several countries have started to take action against Hawala as part of their anti-money laundering programmes. However, few ever succeeded in ensuring supervision of those transactions. Many experts, including those involved with the 9/11 Commission, claim that Al Qaeda now finds it impossible to raise funds and has had to slash its spending substantially (Gurulé, 2015). This presumption is mostly focused on the effectiveness of the US and some other governments in finding and closing the conventional Al Qaeda resource base.

The Methods of Money Laundering

1.	Purchases	Immobilized property or other durable goods may be used for money laundering. The commodity is usually purchased for cash and exchanged for clean cash, such as bank checks.
2.	Business Ownership	Money may be laundered by legal companies, which may apply laundering funds to legitimate income. Cash intensive activities are particularly well prepared for laundering, such as restaurants.
3.	Shell Corporations	Money launderers may only establish businesses to conceal money transactions without legal operations.
4.	Securities	It is mostly used to enable movement of funds where underlying security agreements mask (and legal searching reasons) transactions.
5.	Gambling	Casinos, horse-races and lotteries are places to get money legalised. In the case of casino chips, the money launderer will purchase (for the sake of 'dirt' cash) winning tickets – and refund tickets or chips on a 'clean' search. The verification can then be conveniently deposited in the banking industry.
6.	Insurance Policies	Money launderers buy single premium premiums (silent cash), make early payments (and pay any penalty) and collect clean deposit checks. Increased payments for long-term premiums can make washing more difficult to recognise.
7.	Cash Smuggling	Money launderers can send mails, FedEx or just take cash to various jurisdictions, or from one area to another.
8.	Cash Deposits	Money washing machines must pay cash advances to bank account before deposits are made. In response to anti-money laundering laws, transfers are always 'structured,' i.e. big to tiny sums split down. It is also known as 'smurfing.'
9.	Informal Value Transfer Systems (IVTS)	Money launderers don't need to be banking dependent, other transactions are easily available to move the funds, such as the Hawala or the Hindi. The networks are shops (mostly selling foodstuffs, telephone cards etc.) that are also active in transfer services. IVTS allow movements of foreign funds as these shops are in various jurisdictions.
10.	Wire Transfers or Electronic Banking	The main vehicle for money launderers in the financial sector to transfer funds. These actions will mask the illegal sources of the funds or simply put the money where the washing workers need it. The funds also pass through many banks and even several jurisdictions.

(Source: Created by the Author)

Fund Using

Now, the funds that gets collected and later on laundered are used for multiple purpose and they are divided into various channels. We now can only guess about the budget and spending of Al Qaeda. These funds had largely been used in transportation, recruitment, repairs and activities until 9/11. Al Qaeda financed jihadi wages, training camps, airfields, equipment, armed forces and construction of manuals of training according to a 9/11 Commission report. Bin Laden also gave the Taliban about 10 million dollars to 20 million dollars annually. The core responsibilities of Islamic fundamentalist teachers sympathetic to al-case Qaeda's were indoctrination and recruiting. These organisations also have their own supportive and financial outlets. Al Qaeda has also helped fund the Taliban regime's financial needs, the scope of this support remains nevertheless also a matter of speculation.

Any funds have also been used to promote social, cultural and humanitarian projects in Afghanistan and elsewhere in the region aiming at winning local support. The report of the Commission 9/11 also says al-Qaeda has been involved in partnerships with other militant Islamic group before 11 September (Bacon, 2017). Groups such as Jemaah Islamiyah and Abu Sayyaf in Southeast Asia. They have formed relationships in many places in the former Soviet Union with Salafist groups in North Africa and other emerging Islamist groups. Al Qaeda has provided start-up support and financing for targeted operational operations to other jihadi organisations. Many of these organisations have formed joint resources with al-Qaeda and funding streams. However, they also choose to look for al-Qaeda funding to pay for particular terrorist activities. Since 9/11 such charitable assistance has been curtailed by the Commission to other organisations (Bettiza, 2015). What is left today seems more focused on "personal contacts with employees than on a management system, according to their research. Nonetheless, Al-Qaeda also provides financial and logistical aid to groups in Chechnya, North Africa and Southeast Asia, and there are significant anecdotal information today.

Al Qaida was responsible for financing the Bali bombing campaign of Jemaah Islamiyah and the Marriott Hotel bombing in Jakarta in August 2003 according to Indonesian investigators. Al Qaeda is alleged, as late as the spring of 2003, to have also helped to fund the development of terrorist training camps in remote Indonesia, Malaysia, Philippines and Thailand. Al Qaeda continues to maintain considerable financial ties with the Salafist Call & Combat Community in North Africa and is accused of supplying developing companies in East and West Africa with new financial assistance. The war against terrorism was greatly benefitted from the rise in intelligence collection after 9/11. Which included information collected from inquiries into forensic banks, irregular activity records, confiscated computers and documentation and information gathered by seized operators or associates of Al Qaeda.

This intelligence has contributed to the detention and closure of many terrorist funding systems and their perpetrators (Farhadi, 2020). Steps have been taken to blacklist people and bodies in a variety of countries, including charities alleged to have been engaged in Al Qaeda and related funding for terrorists. Many of these designations have been forwarded to the United Nations Security Council for inclusion of al Qaeda and Taliban persons and organisations to the UN Compiled List.

Conclusion

On a concluding it could be said, terrorist funding described as the collection, storage and move of funds collected through lawful or illegal means of terrorist attacks, or to maintain a terrorist organisation's logistical system is an ongoing 'cat and mouse' game. As terrorists and insurgents continue to develop new funding networks in order to avoid law enforcement, security officials who are assigned to fight unconventional warfare finance can continuously modify their arsenal of countermeasures to block these networks

References

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Bettiza, G. (2015). Constructing civilisations: Embedding and reproducing the'Muslim world'in American foreign policy practices and institutions since 9/11. Review of International Studies, 575-600.

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Ross, D., & Barr, N. (2021). How Al-Qaeda Works: The Jihadist Group’s Evolving Organizational Design - by Daveed Gartenstein-Ross Nathaniel Barr. Retrieved 4 May 2021, from https://www.hudson.org/research/14365-how-al-qaeda-works-the-jihadist-group-s-evolving-organizational-design

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