Countering the Financing of Terrorism in the International Community

by Ivica Simonovski (Author) Zeynep Ece Ünsal (Author)
©2018 Monographs 168 Pages


Terrorist attacks in Norway, Germany, Belgium, Holland, France and Turkey showed that Europe faces new security challenges. Based on their purpose, terrorist organisations vary widely: They range from large state-like structures to small, decentralised and self-directed networks. How these networks develop and maintain depends to a large degree on their financial sources and funding. The authors look at those aspects of terrorism. They analyse different methods of funding – how terrorist organisations, terrorist cells and individuals raise, move and spend money to support or carry out terrorist activities. The study also takes international responses into account to combat the funding of terrorism.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author
  • About the book
  • This eBook can be cited
  • Table of Contents
  • Acronyms and Abbreviations
  • Introduction
  • Chapter I. “Know The Terrorist Threat”
  • 1. Know Your Terrorist Organization
  • 1.1 Mapping of Terrorist Organization and Ways of Financing Terrorist Organization
  • 1.1.1 Africa’s Active Militant Islamist Groups
  • 1.1.2 Middle East’s Political/Terrorist or Resistance Movements
  • Hamas
  • Hezbollah
  • From “Jama’at Al-Tawhid Wal-Jihad” to Islamic State of Iraq and the Levant
  • Financing Strategy of ISIL
  • 1.1.3 Terrorism in Europe
  • 2. A Need for Financing Terrorist Activities
  • 2.1 A Need for Financial Resources of Terrorist Organization
  • 2.2 The Emergence of New Actors of Terrorism and Their Need for Financial Resources
  • 2.2.1 Financing of Terrorist Cells
  • 2.2.2 The Emergence of Lone Wolves
  • 2.2.3 The Old-New Phenomenon – Foreign Terrorist Fighters
  • 3. Phases of Financing Terrorist Activities
  • 3.1 Sources of Financing
  • 3.1.1 Illegal Sources of Financing
  • The Connection Between Terrorism and Organized Crime
  • Financing Terrorism Through Money Laundering
  • 3.1.2 Legal Sources of Financing
  • 4. Interest-Free (Islamic) Finance Institutions and Banking System
  • 4.1 Historical Roots of Interest-Free (Islamic) Finance Institution and Banking System
  • 4.2 Tools of Interest-Free (Islamic) Finance Institution and Banking System
  • 4.3 Issues in Interest-Free (Islamic) Financial System Related With Financing Terrorism
  • 4.4 Zakat – Between Religion and Terrorism (Example of Saudi Arabia)
  • 5. The Cyber Threat to the Banking Sector
  • 5.1 Overview of E-Banking Services
  • 5.1.1 Phone Banking
  • 5.1.2 Online Banking
  • 5.1.3 Internet Banking
  • 5.1.4 Mobile Banking [Wireless Application Protocol (WAP) Banking]
  • 5.1.5 New Forms of Distribution of Banking Services
  • 5.2 Determined Risks Due to the Use of E-Banking Services
  • 5.2.1 Internet Fraud
  • Identity Theft
  • Identity Fraud and Social Engineering
  • Mass-Marketing Fraud-Phishing
  • Nigerian Fraud
  • 5.2.2 Harmful Software (Malware)
  • Intercepted Communication
  • 5.2.3 Payment Card Fraud
  • 5.2.4 Distributed Dental of Attack on the Work of the Banking Information System (DDoS Attacks)
  • Attacks on the Banks
  • 5.3 Protection of the Bank Information Infrastructure
  • 6. Money Transfer Methods for Terrorism Financing
  • 6.1 Using the Financial Sector for Transferring Funds for Terrorism Financing
  • 6.2 Courier Service for Transferring Cash and High Value Goods
  • 6.3 Informal Money Transfer System for Terrorism Financing – “Hawala”
  • Chapter II. International Response to the Financing of Terrorism
  • 1. United Nations
  • 2. Council of Europe
  • 3. European Union
  • 4. Financial Action Task Force (FATF) and FATF Style Regional Bodies (FSRBs)
  • Chapter III. The Role FININT Can Play
  • 1. Legislative Framework
  • 2. The Role of Obligated Entities (Financial and Non-Financial Institutions)
  • 2.1 Customer Analysis
  • 2.1.1 Customer Profiling
  • 2.1.2 Monitoring Suspicious Transactions and Submitting STR
  • 3. Financial Intelligence Unit
  • 3.1 Models of the FIU
  • 3.1.1 Administrative Model of the FIU
  • 3.1.2 Law Enforcement Model of the FIU
  • 3.1.3 Judicial Model of the FIU
  • 3.1.4 Hybrid Model of the FIU
  • 4. Core Functions of FIUs
  • 4.1 Receiving and Analyzing Suspicious Transactions Reports on Money Laundering and Terrorist Financing
  • 4.2 Tactical Analysis
  • 4.3 Strategic Analysis
  • 4.4 Dissemination of Reports
  • 4.5 Postponing and Freezing Suspicious Transactions
  • 4.6 Monitoring of Customer’s Business Relations
  • List of Figures
  • List of Tables
  • List of Photos
  • Bibliography

← 8 | 9 →

Acronyms and Abbreviations

← 10 | 11 →



ISBN (Hardcover)
Publication date
2018 (December)
Phases of Financing Terrorist Activities Islamic Banking International Response to Financing Terrorism Financial Intelligence Units
Berlin, Bern, Bruxelles, New York, Oxford, Warszawa, Wien. 2018. 168 p., 36 b/w ill., 3 b/w tab.

Biographical notes

Ivica Simonovski (Author) Zeynep Ece Ünsal (Author)

Ivica Simonovski received his PhD in International Politics at the Faculty of Law, Saints Cyril and Methodius University of Skopje. He is the Co-Founder of the Cyber Security, Corporate Security and Crisis Management Initiative (C3I). This non-governmental organisation focuses on raising public awareness of phenomena which are related to human security and privacy, among others electronic transactions and money laundering as well as terrorism and financing of terrorism. Zeynep Ece Ünsal studied Business Administration as well as European Union and International Relations at the Baskent University in Ankara (Turkey). She received her PhD in International Security and Terrorism from the Defence Sciences Institute at the Turkish Military Academy in Ankara. Her research areas are international security, terrorism, international organisations and the European Union. She is the chairperson of CSRC-Global, a non-governmental organisation focused on security and terrorism issues especially in the cyber area.


Title: Countering the Financing of Terrorism in the International Community
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170 pages