Counterterrorism Tracking Terrorist Assets - Coursework Example

Counterterrorism Tracking Terrorist Assets The overriding goal of any counterterrorism strategy is to protect nations from terrorist attacks. One of the mandates of counterterrorism institutions such as FBI, Homeland Security, and CIA is to identify and disrupt plots by either terrorist cells or individuals. Counterterrorism strategies are directed at eradicating acts of terrorism as well as holding accountable the perpetrators and those who either support or harbor terrorists. Effective execution of policies directed at tracking terrorist assets demands cooperation between all parties. This is informed by the fact that money, beside radicalization narratives, can be considered as the life-blood of terrorist organizations. The freezing of terrorist’s assets involves blocking of all property and interests belonging to persons committing or posing a significant threat to citizens, national security, foreign policy or economy. This paper seeks to address counterterrorism tracking terrorist assets. Counterterrorism tracking terrorist assets Introduction Terrorists utilize monetary resources in training, motivating, and indoctrinating individuals meant to carry out terrorist activities. In addition, monetary resources and associated assets are employed to procure arms and ammunition utilized in terrorist acts. Similarly, money is employed in establishing media and propaganda infrastructure. The most outstanding means by which money is utilized in financing terrorist activities includes facilitating the movement of men, messages, and components and materials essential in accomplishing terrorist attacks. Asset tracking of terrorist finances is geared towards depriving terrorists of their primed funding. Counterterrorism efforts of tracking assets is directed at thwarting an individual, group, or a state providing material support or resources to both domestic, as well as foreign terrorist organizations (Brzoska, 2011). One of the outstanding counterterrorism strategies includes spotlighting, tracking and freezing terrorists’ finances. This calls for sharing of key information between law enforcement and intelligence communities worldwide. The tracking of terrorist assets and subsequent freezing of the assets are directed at denying terrorists vital resource input essential to planning and undertaking of their activities. One of the significant changes witnessed in terrorist financing includes transnationalization of terrorism activities. Though not new, the operation of terrorists across borders has gained prominence, especially after the end of the cold war era. The shift from national to transnational terrorism has largely been facilitated by globalization, which has facilitated enhanced movement of ideas, goods, and services across regions. Moreover, there has been a continual entrenchment of Islamic fundamentalism. The shift has also been felt in terrorist financing patterns, whereby previously terrorists were self-financing through illegal activities or reliance on external sponsorship by rogue governments (Purpura, 2007). Nevertheless, government sponsorship has dwindled over time. Donations and crime still remain key sources of terrorist funding reinforced by transnationalization of financing. The United Nations Security Council has adopted wide ranging resolutions such as (UNSCR) 1373 to address the problem of terrorist financing. The resolutions urge states to prevent and suppress the financing of terrorist activities besides criminalizing wayward provision of or collection of funds meant for terrorist activities. The resolutions also demand that states bar their citizens or entities within their jurisdiction from making financial assets, economic resources, or funds available to individuals who orchestrate or attempt to conduct, facilitate, or engage in the commission of the terrorist acts. Today, there is an enhanced degree of cooperation in tracking down terrorist assets and financiers between countries that have ratified the UN convention on financing terrorism. Where do Terrorist Organizations get their Money? Terrorists together with their extremist supporters amass substantial amounts of money from diverse sources, inclusive of transnational crime, personal fortunes, extortion, and private charities, and Foundations (Martin, 2010). Donations from wealthy individuals also form part of terrorist financing. Illegal activities such as illicit drug trade also comprise one of terrorists’ core sources of income. For instance, Afghanistan’s flourishing poppy crops are believed to be the backbone of terrorist funding. Front companies also comprise a substantial source of terrorist funding, whereby terrorist organizations operate genuine business. Profits from such establishments are utilized as a front for money laundering. Earning Money The financial support of terrorism incorporates both earning money via legal and illegal means and illegitimate movement of money to terrorist groups. In most of the cases, charities are used to conceal illicit transfers of money. This makes the funds transferred to terrorists legal and only attains their relationship to terrorist financing via subsequent money laundering. This may also incorporate profits from legitimate businesses been diverted to illegal activities such as terrorism. Moving Funds In some instances terrorists transfer funds in clear sight via ordinary banking system. Prior to 9/11, terrorists were exploiting the formal banking sector as it availed an international reach and was laden with weak regulation. The vastness of the modern financial system complicates efforts aimed at detecting terrorist financing (Brzoska, 2011). Nevertheless, the international system is moving towards integration and regulation of international banking. Nowadays, the international banking sector features built-in impediments to regulate and enhance law enforcement cooperation. This requires a harmonization of domestic laws and regulations to enable countries to freeze assets within their jurisdictions as other jurisdictions. The increased surveillance within the formal banking sector has led to terrorists adopting fresh channels of moving money around. The new means are even cheaper compared to conventional modes of money transfer arrangement beside availing anonymity to the parties involved (Purpura, 2007). Modes such as arranged hand delivery of cash is increasingly becoming popular among terrorists because they can be employed in areas without formal banking sector, lack documentation and are anonymous. Other modes utilized in terrorism financing include remittance systems such as Hawala system and use of cash couriers. This is worsened by monetary practices such as donating to charities, and informal money-transfer centers deeply embedded within Muslim culture. This heralds difficulties in tracking down terrorist financial connections. As demonstrated, stopping terrorist financing demands close working of local, state, national, and international actors, grounded in public-private partnership. Counterterrorism financing Today The 9/11 marked a turning point in the war against terrorism whereby governments started taking concerted efforts in tackling terrorism. One of the counterterrorism tactic encompassed seizing and freezing ban accounts and economic assets associated with Al Qaeda, the Taliban or any other terrorist organization. Nevertheless, over the years, this task has proved to be difficult, arising from the fact that most of these assets are shrouded in secrecy (Purpura, 2007). This is further complicated by international transactions that flow through the banking facilities. As a result, some of the international players, especially international banking systems, have already started feeling overwhelmed by accounts search and freezing orders. Tracking down of assets suspected to belong to terrorists holds the potential of leading investigators to recipient terrorist cells and identify of the sources of funding. Combating terrorism calls for concerted efforts from all departments of a government ranging from intelligence and law enforcement agencies to the department of the treasury. Asset tracking institutions have a crucial enforcement and regulatory mandate. The rapid advancement in technology and swift globalization are increasingly making counterterrorism efforts more difficult, more so in the arena of asset tracking and eventual freezing (Yager, 2005). Terrorist cells use illicit activities to raise money critical to their planning and execution of their activities. Counterterrorism institutions often investigate money laundering and other financial crimes via tracking and freezing of targeted terrorist assets. This also incorporates imposing and enforcing of economic sanctions. Legislation In U.S., several legislations have been made in line of abating terrorist financing. The Intelligence Reform and Terrorism Prevention Act executed technical corrections to the USA Patriot Act, and incorporated provisions that demand that Treasury Department to foster a national money laundering strategy. Other measures include granting the Securities and Exchange Commission authority to respond to unusual market disturbances (Yager, 2005). Institutions such as Office of Terrorism and Financing Intelligence and Foreign Terrorist Asset Tracking Centre (FTAT) within the Office of Foreign Assets Control (OFAC) aid in centralizing efforts to track and shut down terrorist financing as well as to exploit financial information. This is facilitated by identification of known or unknown terrorist cells and recognition of potential terrorist planning or activities. The above institutions develop government-wide strategies aimed at countering terrorist financing as well as incapacitating terrorists financial holding within the United States. The strategies are mainly directed at availing regulatory, diplomatic, defense, intelligence, and enforcement bodies together in tackling the problem of terrorism financing. The Difficulties of Tracking Assets The greatest difficulty in tracking down terrorist financiers emanates from the fact that terrorist networks are aware of governments’ efforts. As a result, they have adjusted their operations accordingly. The ongoing surveillance of terrorist financing has led to mutation of terrorist financing as strive to stay ahead of the authorities. Similarly, illegal activities such as smuggling or counterfeiting are tricky to track through the present financial system. Methods such as cash courier services, which are mainly employed by domestic terrorists, are difficult to trace within the financial system. Other difficulties arise from the fact that such finances, inclusive of charities, exhibit a convoluted myriad of transactions between related corporations that render it almost impossible to ascertain where the money was destined (Alexander & Kraft, 2008). This compels countries to continue pursuing and freezing actions so as to punish terrorists’ financiers and discourage terrorist financing. Active combing of banking data is necessary in order to search for leads to terrorism activities under Bank Secrecy Act and Patriot Act. The mined data are then linked with law enforcement, commercial, and intelligence data sources in order to follow the money and spotlight the financial networks tied to terrorism or any other criminal activities. The establishment of Financial Intelligence Units has been a substantial asset in highlighting money laundering and terrorism-linked wire transfers and other transactions (Steven & Gunaratna, 2004). This incorporates monitoring international financing clearing houses such as SWIFT, which are rich with payment information, to pick up threads of information that may be related to terrorism financing. Dismantling Terrorist Financial Networks Banking Practices Money Laundering and Financial Crimes Suspects in financial crimes investigations have customarily been perceived as white collar criminals. Nevertheless, money laundering has become part of a diversified criminal portfolio. The proceeds from the criminal activities are used to finance criminal enterprises such as terrorism. The investigation of such financial crimes as money laundering is geared towards crumbling terrorist financing, which is the sheer support system of terrorist activity. An effective execution of anti-terrorism asset tracking demands a seamless liaison between the state, intelligence and law enforcement community, financial and justice system (Orttung & Makarychev, 2006). The tie between financial crime and terrorism is not merely limited to international terrorist organizations, but also domestic criminal organizations. Asset tracking involves “following the money” and insulating institutions from cases of money laundering. Among the tracked information include information on terrorist fundraising. Accomplishing this calls for liaising with institutions such as banks and obtaining confidential data concerning terrorists’ financial transactions and their assets. Economic Sanctions The administration and enforcement of economic sanctions against terrorist organizations are fashioned at crippling the ability of terrorists to carry out their plans. This is orchestrated to block terrorists assets as well as deterring terrorist financing and impeding usage of a country’s financial system. One of the effective ways of counterterrorism asset tracking include instituting and maintaining a terrorist screening centre in which terrorism watchdog consolidates a terrorist watch list. The consolidated financial intelligence database enables pooling of information together, especially on those known or reasonably suspected of involvement in terrorist activities (Yager, 2005). Counterterrorism Surveillance Technologies Surveillance systems have become a principal component of counterterrorism systems. Surveillance technologies provide an access to private electronic transactions, including telephone records, computer transactions, and communications. Although the issue of confidentiality rears its head each time tapping into other people’s systems comes to the fore due to their inherent intrusive nature, surveillance technologies are invaluable in tracking terrorists. Surveillance systems are an ingenious way of tracking transactions and assets held by terrorists (Martin, 2010). Moreover, it is vital to educate consumers and employees within the financial services industry on issues centering on terrorist financing activities. Key financial institutions should exhibit clear guidelines with effective internal controls to ensure compliance as well as detecting illegal transactions. The focus may dwell on how both public and public sector organizations engage in activities fashioned at combating terrorism financing. This is because the organizations should shield and preserve the lives and liberties of consumers and employees within financial services industry. Regulators should also conduct standard examinations of institutions offering financial services to ensure that they are sound, and not vulnerable to terrorist financing. Mapping at risk institutions to money laundering or terrorist financing is critical. Counterterrorism efforts in asset tracking should adopt a uniformed, principled, and standard method of interrogating systems thought to be safe havens for terrorist financing (Linden, 2007). A sound counterterrorism strategy requires better management and control over movement of terrorist money in order to impede any transactions that might result to terrorist activities. The enactment of strong anti-terrorist financing obligations and anti-money laundering is crucial to tackling terrorist financing. Fighting terrorist financing requires ample possession of knowledge, skills, and technology necessary for tracking down assets that belong to terrorists. Besides enactment of anti-terrorist financing statutes, diligence is also crucial in the exercise (Orttung & Makarychev, 2006). This demonstrates the fact that anti-terrorist financing is a sound counterterrorism strategy, which demands a substantial investment of resources if it were to bear fruits. Conclusion The ultimate goal of any counterterrorism financing should be starving the terrorists of funding and crippling of institutions that support or facilitate terrorism. This stems from the fact that terrorist groups are increasingly becoming adept at eluding detection through employment of sophisticated laundering operations, as well as legitimate front companies. Efforts should not be solely directed at seizing terrorist assets, but also exploiting intelligence gathered from financial investigations. There is more to be achieved from following the money for intelligence as a tool for hunting down terrorists, understanding the networks therein and unsettling their operations rather than merely drying up terrorists financial reserves. The assault, especially on the financial underpinnings of terrorism, can be regarded as key to any country’s counterterrorism efforts. This requires effective implementation of measures directed at tracking and disrupting terrorist money flows. This incorporates actions such as assets freezing and monetary sanctions. Thus, there tend to be a need for exploring and designing effective measures aimed at countering the financing of terrorism acts at state, regional, and international levels. This will involve valuable coordination of diverse elements of national power, inclusive of intelligence gathering, financial regulation, law enforcement, and building of international coalitions, each with clear jurisdictions. References Alexander, Y. & Kraft, M. (2008). Evolution of U.S. counterterrorism policy: Volume two. Westport, CT: Greenwood. Brzoska, M. (2011). “The role of effectiveness and efficiency in the European Union’s counterterrorism policy: The case of terrorist financing.” Economics of Security Working Paper 51. Berlin, Germany: Economics of Security. Linden, E. (2007). Focus on terrorism, Volume 7. New York, NY: Nova Science. Martin, G. (2010). Understanding terrorism: Challenges, perspectives, and issues. London, UK: Sage. Orttung, R. & Makarychev, A. (2006). National counter-terrorism strategies: Legal, institutional, and public policy. Washington: IOS Press. Purpura, P. (2007). Terrorism and Homeland Security: An introduction with applications. Burlington, MA: Butterworth-Heinemann. Steven, G. & Gunaratna, R. (2004). Counterterrorism: A reference handbook. California, CA: ABC-CLIO. Yager, L. (2005). Terrorism financing: Better strategic planning needed to coordinate U.S. Washington: United States Government Accountability Office. Read More