Financial Crime World

Terrorist Financing Suspicions Skyrocket as Law Enforcement, Judicial Authorities Rely on Financial Analysis

A recent report has revealed a significant surge in terrorist financing suspicions, with law enforcement and judicial authorities relying heavily on financial analysis to crack down on these illicit activities.

Financial Instruments Used by Terrorists

According to the report, local and foreign transfers have been the most commonly exploited financial instruments by suspects. These were followed closely by:

  • Cash deposits and withdrawals
  • Cheque deposit and issuance

Less frequently used financial instruments included:

  • Credit facilities
  • Investment transactions
  • Cross-border transportation of funds
  • Electronic financial services
  • Currency change
  • Sale and purchase of shares
  • Insurance policy
  • Letters of credit

The report highlighted a noticeable trend of using cash transfers, deposits, and withdrawals in tax evasion and fraud cases. In addition, there was an increase in the use of electronic financial services by suspects:

  • 39 notifications and reports related to e-financial services were received by the Unit during 2019, compared to just 11 in 2016
  • The trend is attributed to the growing knowledge among criminals of modern technologies and their ability to exploit them for criminal activities

International Cooperation

The report showed that international cooperation was crucial in combating terrorist financing. The Unit sent out:

  • 16 information requests during 2016, with most going to the UAE (4) and USA (3)
  • 17 requests were sent in 2017, mostly to the UAE (4) and Republic of Iraq (3)
  • 27 requests were sent in 2018, with most going to KSA (12), Republic of Iraq (8), and UAE (5)
  • 41 requests were sent in 2019, with most going to KSA (12), Republic of Iraq (8), and UAE (5)

Conclusion

The report concluded that strengthening security supervision at border crossings and on persons suspected of being involved or sympathizing with terrorists is crucial in combating the growing trend of terrorist financing.