Terrorist Financing Tactics Evolve Continuously
A Report by the Financial Intelligence Unit (FIU)
The Financial Intelligence Unit (FIU) has released its annual report for 2020, revealing that methods for terrorist financing have changed continuously. Individuals and groups are using various means to fund their activities, making it crucial for financial intelligence units like the FIU to stay ahead of these criminals.
Methods of Terrorist Financing
According to the FIU’s report, terrorist financing in Sweden is primarily carried out by individuals who send money to organizations or individuals linked to terrorist activities. The recipients of these funds can be individuals, groups, or organizations involved in terrorist activities.
- Other methods of terrorist financing include:
- Organized criminal activities
- Running companies
- Donations and fundraising
- Misusing non-profit organizations
Rise of Cryptocurrencies
The FIU noted that organizations like IS and Al-Qaida have been using cryptocurrencies to fund their activities more extensively than before. Swedish operators have also sent money to terrorist organizations using cryptocurrencies.
- The FIU believes that the use of cryptocurrencies will continue to be important for terrorist financing capabilities, alongside exports of large amounts of cash using money mules.
Typical Cases of Terrorist Financing
A typical case of terrorist financing involves small-scale transfers of cash made through online money remittance services or physical agencies to individuals suspected of being money mules or representatives of a terrorist organization. These transactions may be designed to hide the receiver’s identity and the intended end-use of the funds.
International Cooperation Crucial
Money laundering and terrorist financing are global crimes that require international cooperation. The FIU engages in continuous and direct exchange of information with financial intelligence units in other countries to gather intelligence information about cross-border transactions and criminals.
- The FIU also issues restraint orders, which allow it to freeze assets transferred abroad in cases of suspected money laundering or terrorist financing.
- Strategic-level cooperation between the FIU and other countries aims to exchange expert knowledge on risks for money laundering or terrorist financing, as well as to develop common strategies to combat these crimes.
Conclusion
The report highlights the importance of international cooperation in combating terrorist financing and money laundering. As terrorist financing tactics continue to evolve, it is crucial that financial intelligence units like the FIU work together with other countries to stay ahead of these criminals and prevent the misuse of financial systems for illegal activities.