UN Report Warns of Growing Threat from Domestic ISIS Support Networks

A recent report by the United Nations Analytical Support and Sanctions Monitoring Team has highlighted the growing threat posed by domestic support networks for the Islamic State (ISIS) in the United States.

The Threat Remains Active

Despite a significant reduction in the number of US persons traveling to join ISIS in Iraq and Syria, the group’s presence remains active in parts of Africa, South Asia, and Southeast Asia. According to the report, some US-based ISIS supporters collect and consolidate donations within the country before transferring funds outside using unwitting money services businesses (MSBs) or shell companies.

Recent Cases Highlight ISIS’s Ability to Evade Detection

A recent series of forfeiture actions announced by the US Department of Justice in August 2020 highlighted an alleged scheme by an ISIS facilitator who was responsible for managing select hacking operations to sell fake personal protective equipment (PPE) online. The site administrators claimed to have unlimited supplies of N95 respirator masks, despite official shortages.

• This case is instructive of the typical financial activity used to finance or facilitate travel for individuals seeking to join terrorist movements overseas.
• It also highlights ISIS’s ability to evade detection by using unwitting money services businesses and shell companies to move funds around the world.

Financial Institutions at Risk of Unwittingly Enabling Terrorist Financing

The UN report noted that US financial institutions are at risk of unwittingly enabling terrorist financing activity due to the complexity and layers of transactions involved in ISIS’s financial operations. The group is able to route transactions through complicit individuals, shell companies, and other legal entities to avoid detection.

• This leaves financial institutions vulnerable to being used as a conduit for terrorist financing activity.
• It is essential that they remain vigilant and proactive in detecting and preventing suspicious activity.

Conclusion

The UN report highlights the ongoing threat posed by domestic support networks for ISIS in the United States. Despite significant efforts by law enforcement agencies and financial institutions to detect and prevent terrorist financing activity, the group remains able to evade detection and move funds around the world.

• It is essential that these efforts continue to evolve and adapt to the changing tactics of ISIS and other terrorist groups.
• Only through a sustained and coordinated effort can we hope to disrupt and dismantle their financial networks and prevent further terrorist attacks.