Financing Terrorism

Hezbollah’s Tri-Border Area terror finance comes under fire at last By Emanuele Ottolenghi

On July 13, Argentina’s Financial Intelligence Unit froze assets of 14 Lebanese nationals and residents of the Tri-Border Area of Argentina, Brazil and Paraguay, or TBA. According to the FIU, the targeted individuals were part of a criminal organization linked to Hezbollah and associated with the Barakat clan, a powerful Lebanese Shi’a family whose leader in the TBA, Assad Ahmad Barakat, was sanctioned by the U.S. Department of Treasury in 2004.
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Iranian support for Palestinian terrorism: Continuation of Iranian fund transfers to shaheeds’ families in the Gaza Strip by PIJ-affiliated Al-Ansar charity association

The Al-Ansar charity association in the Gaza Strip, which is affiliated with the Palestinian Islamic Jihad (PIJ), announced that it had distributed this year financial support for families of shaheeds killed in the years 2000-2014. A total of $1,870,000 was distributed this year (compared to $2 million in 2017).
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Terror funding by the Palestinian Authority: Mahmoud Abbas recently approved the budget for 2018, about 7% of which is devoted to assisting prisoners, released terrorists, and families of shahids

In its 2018 budget, the PA allocated around NIS 1.28 billion (around USD 360 million), approximately 7% of the budget, to two institutions that assist terrorists imprisoned in Israel, released terrorists, and families of shahids.
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Hamas’ strategic priority of military buildup over civilian infrastructure and population needs contributes greatly to the severe hardships in the Gaza Strip.

Recently, the issue of the severe economic situation of the Gaza Strip became part of the Palestinian, Israeli and international agenda. The hardships are manifested by the failing civilian infrastructure (medicine, supply of electricity, water, sewage disposal) and by the worsening of the quality of life of the Gazan population.
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A ceremony sponsored by Mahmoud Abbas was held to honor terrorists holding Israeli citizenship who were imprisoned for murdering an IDF soldier

On January 14, 2018, two events were held that clearly manifested the support the Palestinian Authority (PA) and Fatah give terrorists (from all the organizations) imprisoned in Israeli jails
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In view of its financial problems, ISIS is selling coins that it minted at the time of the Islamic State. Payment for the coins is madevia an international clearing system.

On December 26, 2017, ISIS’s Haqq website published an article stating that coins minted by the Islamic State were being sold on “one of the sites on the Internet” (without mentioning the site’s name or address). The article states: “One of the news sites [on the Internet] published an advertisement [for] the purchase of every [type] of dinar currency minted by the Islamic State. The website notes that payment for the coins is via PayPal."
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Financing Terrorism

A terrorist organization must have sources of financing to finance and carry out all of its activity and goals. Without financing sources, it will be difficult for the organization to exist and carry out its goals. Without financing, the organization will not be able to handle, support and equip its operatives, and prepare and maintain a reasonable infrastructure for its activity.

Terrorist financing can be divided into two main goals: financing a focused act of terrorism with a clear goal. In this case, the financing activity will be limited in scope, amount and time. The other type of goal is a broader goal of establishing, maintaining, and cultivating the terrorist infrastructure, organizational structure, purchasing, ongoing expenses, payment of salaries and more. In this case, the financing activity is not limited in time, ceiling or financial scope.

Most of the money for terrorism financing comes from terror-sponsoring countries, among which Iran is prominent (and is involved in the financing of terrorism carried out by Hezbollah, Hamas, and the Palestinian Islamic Jihad). Terrorist organizations have additional sources of financing, such as revenues from criminal activity (Hezbollah), the sale of oil products, and the collection of taxes from the population (ISIS). Other organizations finance terrorism with funds obtained from sources such as donations, charities, commercial profits, etc., which were diverted to terrorism financing.

In recent years there has been growing recognition of the importance of thwarting terrorist financing channels as part of the effort to thwart terrorist activity. In the aftermath of the terrorist attacks of September 11, 2001, the international struggle against terror financing gained momentum, and it was decided to integrate the international struggle against terrorism into the struggle against terrorism financing and even to streamline it through legislation and counterterrorism activities. However, as the struggle against terrorism financing increases, the methods of terrorism financing become more sophisticated and diverse, making it more difficult to monitor the sources of terrorism financing and to cope with them.