Financial Crime World

Terrorist Financing Activity Related to ISIS in the United States

Executive Summary

This report highlights various cases and trends related to terrorist financing (TF) activity in the United States, specifically focusing on the Islamic State (ISIS). The report provides insight into the complex and evolving nature of TF activity.

Case Examples

The following case studies illustrate individuals involved in TF activities:

  • A Bangladeshi husband and wife who conspired to provide material support to ISIS.
  • Other notable cases will be highlighted as additional information becomes available.

Cyber-Enabled Terror Finance Campaigns

In 2020, the Department of Justice announced a series of forfeiture actions to dismantle several cyber-enabled terror finance campaigns supporting ISIS, Al-Qaeda (AQ), and Hamas.

Key Points

  • These campaigns utilized online platforms to raise funds for terrorist organizations.
  • The Department of Justice took action to disrupt these campaigns and prevent further funding.

ISIS’s Use of Virtual Assets

While ISIS has explored using virtual assets for financing, its use remains limited. Direct financial exchanges between US persons and known ISIS supporters are infrequent or inconsistent.

Key Points

  • ISIS has not extensively utilized virtual assets for fundraising.
  • Financial institutions have reported few instances of direct transactions with ISIS operatives.

Challenges for Financial Institutions

The report highlights the challenges faced by financial institutions in detecting TF activity proactively:

  • Small dollar amounts of donations
  • Indirect relationships between US-based ISIS supporters and ISIS operatives

Key Points

  • Financial institutions face difficulties in identifying TF activity due to these factors.
  • These challenges require increased vigilance and collaboration among financial institutions, law enforcement agencies, and regulatory bodies.

Shell Companies and Circumvention

ISIS financial facilitators use shell companies and other legal entities to move funds raised in the United States. This creates layers between US-based supporters and ISIS, making it difficult for financial institutions to detect transactions.

Key Points

  • Shell companies are used to conceal TF activity.
  • Financial institutions must remain vigilant against these tactics to prevent TF.

Conclusion

This report provides valuable insight into the complex and evolving nature of terrorist financing activity related to ISIS in the United States. By understanding these trends and challenges, financial institutions, law enforcement agencies, and regulatory bodies can work together to prevent TF and disrupt terrorist organizations.