Terrorist Financing

Terrorist Financing

The Failure of Counter Measures

Nick Ridley

For over a decade international efforts by law enforcement, government and financial regulatory authorities have been deployed in combatting terrorist financing, in good faith and with dedication beyond reproach. This book surveys the methods of financing of numerous terrorist groups and organisations – including the Chinese and Asian dimension – and considers why ultimately international efforts to combat the financing of terror are failing. Nick Ridley expertly illustrates the scale of the problem by first outlining the strategies of anti terrorist financing, the pre and post 9/11 differences in scope and extent of terrorist attacks, the financial support and the national and international efforts to implement and carry out countermeasures. He then goes on to set out a detailed analysis of the apparent failure of such counter measures to date.

Chapter 6: The derided modus operandi

Nick Ridley

Subjects: law - academic, finance and banking law, terrorism and security law, politics and public policy, terrorism and security


Counterfeiting of goods has long been recognized as a major international crime threat, growing exponentially. This growth is not temporary, but a quasi-geometrical progression increase. In a five-year period from 1990 to 1995, the value of counterfeiting as a percentage of world trade increased from 3.5 to 5 per cent. It is now the equivalent of over 7 per cent of global trade. This increase is on a global scale. Counterfeiting of goods is a criminal activity in which organized crime groups are increasingly involved. Such groups have been involved in counterfeiting of goods since at least 1998, according to a NATO report on organized transnational crime. According to a global anti-counterfeiting congress, by 2004, organized criminal groups had increased control of the international flow of counterfeit goods. During the early part of the 2000s, awareness increased regarding the importance of an effective and co-ordinated international anti-counterfeiting strategy as part of the fight against organized crime. Indeed, at official EU level during this decade, there was there a slow but steady recognition of the extent of the problem of counterfeiting, and the necessity for effective anti-counterfeiting strategies. In 2007, a European Commission report noted the increase since 2006 in seized goods as being 17 per cent. More counterfeit goods were being speedily produced by mass production7 in the source countries.

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