Relation betweenMoney laundering and Terrorist Financing:It has been mentionedearlier in the section, Terrorist financing is quite similar to Money launderthus, it is important to understand relation between money laundering and terroristorganisation to have a better understand of terrorist financing and itsactivitiesAs it’s widelyknown all the terrorist organization have been related to the traditionalwashing schemes, which are related to money laundering while trying to stayundetected by, uses various methods for movement of their funds. The importantreason behind why they use money laundering to transfer the money is becauseboth of them are correlated to each other in the way they use fund, their sourceof the fund, and hiding the purpose and the ultimate beneficiary.Money laundererhas to deal with huge amount of money and has to launder it without gettingunwanted attention. As mentioned inearlier section terrorist organization when it comes to the amount or value,they have to be able to have certain amount of fund to meet their direct Operational cost – wherethey need to maintain the infrastructure, paying salary, recruiting, training,etc.
and the other is related to direct attack – buying weapon, communicating,traveling, fake document etc. Cost of operational activities of terroristorganization is much higher than direct attack cost itself, however purpose ofthe fund needs to be kept secret in both the cases of funding requirement. Thisgives an idea and general reason why they use money laundering techniquesbecause they have to deal with significant amount of money along with makingsure to not get detected by the authority as money laundering technique aredesigned to avoid unwanted attention.Another reason whythey behave like money launders, because they wanted to make sure that originof the fund remain undetected , as mentioned in source of finance section,Terrorist organisation use various source of illegal or criminal activity, suchas drug tracking, extortion, Oil sales and etc, and also fund themselves by black washing, where they fund themselvesfrom charities, state sponsorship, legitimated business and self-funding theydon’t wanted their sources to get unwanted attention because even in case oflegitimate business, they want to avoid attention as it can lead to prosecutionof the individual or the entity involved in the transaction. The last reasonwhy they use laundering schemes to avoid detection and concealment of theirtrue intention. Technique mention with case study earlier gives us an ideathat, how terrorist moving their fund and the above discuss help us tounderstand that why such activities are being used by the terrorists.
