Report Highlights Growing Concerns Over Terrorist Financing in the United States

Unconventional Methods Used to Funnel Funds to Extremist Groups

A recent report by the Analytical Support and Sanctions Monitoring Team has shed light on the growing concerns over terrorist financing in the United States. The report highlights the increasing use of unconventional methods to funnel funds to extremist groups, including ISIS.

Unwitting Money Services Businesses (MSBs) Used to Evade Detection

According to the report, some U.S.-based supporters of ISIS are collecting and consolidating donations within the country before transferring them outside using unwitting money services businesses (MSBs) rather than banks. This method allows them to evade detection by financial institutions.

Shell Companies Used to Create Layers between U.S.-Based Supporters and ISIS Operatives

The report also notes that ISIS financial facilitators are looking for ways to move funds raised in the United States to shell companies around the world, creating layers between U.S.-based supporters and ISIS operatives. This system allows transactions to circumvent monitoring by financial institutions.

Instances of Complicit Individuals and Shell Companies Identified

U.S. authorities have identified instances where ISIS operatives route transactions through complicit individuals, shell companies, and other legal entities to avoid detection. The report highlights the need for financial institutions to remain vigilant in detecting this activity proactively.

Warning to U.S.-Based Financial Institutions

The report comes as a warning to U.S.-based financial institutions that they may be unwittingly enabling terrorist financing activities. The case examples cited in the report involve activities conducted in 2015, but they are instructive of the typical financial activity used to finance or facilitate travel for individuals seeking to join terrorist movements overseas.

Shift to Supporting ISIS Branches and Networks Abroad

Despite a significant reduction in the number of U.S. persons traveling overseas to join ISIS, the report suggests that some individuals may have shifted their efforts to support ISIS branches and networks in parts of Africa, South Asia, and Southeast Asia.

Limited Use of Virtual Assets

The report also notes that while ISIS’ use of virtual assets remains limited, direct financial exchanges between U.S. persons and known ISIS supporters are rare.

Department of Justice Response

In response to these concerns, the Department of Justice has announced a series of forfeiture actions to dismantle several cyber-enabled terror finance campaigns supporting ISIS, AQ, and HAMAS.

Conclusion: Continued Vigilance Needed

The report concludes by emphasizing the need for continued vigilance in detecting and preventing terrorist financing activities in the United States.