- Research Handbooks in Financial Law series
Edited by Barry Rider
Chapter 44: The regulation of the financing of terrorism
The entrepreneurship of internet technology has given birth to a lush domain. The fertile technology ground has attracted and cultivates multiple forms, shapes, and sizes of deviant behaviors and the accompanying laundering facilities to fund the illegal and nonconforming activities. Technology has provided an enhanced environment for the development of illicit activities, particularly the activities of the sale of arms, the sale of drugs and the training of terrorists. The upscale mall in Nairobi, the train station in China, the twin towers in New York City, the subway in London – terror knows no borders. It recognizes no statutes or international agreements. There is no functioning golden rule. The terrorists assume the trappings of phantoms. The lack of a well-described, clearly defined opponent without a public schedule makes the defense against terror exceedingly difficult. As a result terrorists are leaving a profound and indelible mark on the global economy and the global psychology. Terror and terrorists are impacting the world economy. They are destabilizing the global psychological climate. Terrorists need funds. The funds needed for their frightening enterprises are intimately connected with banks and financial institutions, with hawala and the underground exchanges. The illicit funds are deposited into accounts. Creative and skilled money launderers have discovered and designed numerous ways to legitimize their funds, to launder their funds. The financial institutions attempt to disassociate themselves from the money launderers, to identify themselves as innocent owners without knowledge of the criminal activities from which the funds are derived.
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