Financing Terrorism

Hezbollah’s Martyrs Foundation: purpose, mode of operation and funding methods

Hezbollah maintains an extensive network of social foundations in Lebanon that deal with health, education, welfare and media. Their main goal is to serve as a supportive framework for the organization’s military infrastructure, to disseminate its ideology and to strengthen its position among the Shiite community and the internal Lebanese political arena. Of these institutions, the Lebanese Martyrs Foundation is of key importance. It was established by Iran in 1982, the year in which Hezbollah was established.
Read more...

Funding Terrorism: ISIS raises funds through an affiliated website, using bitcoins

ISIS continues to solicit money to fund its activities by means of a campaign on an affiliated website. On March 6, 2019, the ISIS-affiliated website Akhbar al-Muslimin (a mirror website apparently used because the original site was closed) issued an appeal for donations to what was referred to as "the activities of the website." Donors were again asked to use bitcoins, and the website gave the address of a virtual wallet for depositing donations.
Read more...

Funding Terrorism: The method for transferring donations to Hezbollah through the Islamic Resistance Support Association

Hezbollah recently launched a campaign to raise money for its military activities. The campaign was waged by the Islamic Resistance Support Association (IRSA), Hezbollah's main fund-raising institution. The campaign is waged in the Shi'ite communities in Lebanon and abroad at the beginning of every year. The funds collected are mainly used to buy weapons for Hezbollah operatives (through what is called the "equip a jihad fighter" project).
Read more...

Hezbollah Launched a Campaign to Raise Money for Military Purposes Using the Islamic Resistance Support Association

Hezbollah recently launched a campaign to raise money for its military activities. The campaign was waged by the Islamic Resistance Support Association (IRSA), Hezbollah's main fund-raising institution. Such a campaign is waged in the Shi'ite communities in Lebanon and abroad at the beginning of every year.
Read more...

Drive for donations using Bitcoin on an ISIS-affiliated website

On January 15, 2019, the ISIS-affiliated website Akhbar al-Muslimin (which recently renewed its activity) began a drive for donations using Bitcoin. The site posted a link to its virtual wallet. The link forwards the potential donor to the website of a digital currency exchange located in Vienna.
Read more...

Hamas and the Popular Resistance Committees called on their supporters to donate money using the virtual currency Bitcoin

Hamas and the Popular Resistance Committees, two terrorist organizations operating in the Gaza Strip, recently called on their supporters to donate money using the virtual currency Bitcoin. To date, requests for donors have been made by Abu Obeida, spokesman for Hamas’s military wing, and by the Al-Nasser Salah al-Deen Brigades, the military wing of the Popular Resistance Committees.
Read more...

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.