Global Terrorism Strangling Terror:

A Policy Memo on the Problems, Strategies, and Recommendations of Terrorism Funding

Terrorism is a threat of the modern age. The increase in influence of the non-state actor in the 21st century is most evidently shown by the vast network of non-geographically-based terror cells, they are able to maintain their connections through several means of money transfer and secure banking between intermediaries. To make matters worse, there is a constant supply of fresh financial donors to the cause of terrorism. Shadowy figures who inhabit every dark crack of the world, seeking to expand the capabilities of the network through recruitment of young men to fight. When in pursuit of terrorists, it is often very important to track money flows into terror havens. Money transactions form a web between terrorist cells, easily traced due to several measures put in place by the United States after the events of 9/11.

Problem:

The terror networks of the world rely on money transfers for funding. Despite causing havoc and death around the globe, terrorists are able to still receive donations from supporters around the globe. These networks work out of nations less friendly to the U.S., and therefore it is impossible to cut off flow from banks in these nations. The Gulf States in particular are wary of allowing any U.S. intervention into...

Furthermore, money transfers are received in multiple currencies, the Euro and the Dollar being the most common, but also Swiss Francs, British Pounds, UAE Dirham, and the Russian rubles. This means tracing money will be more difficult, and therefore a plan to investigate terror financing across all currencies must be perceived.
The problem of donations into terror cells is a problem between states and financial rules adopted for international money transfer. There is still a problem of money movement outside of the banking structure, in the form of Hawala. Hawala is a system of middle men who take payments between clients, for a small fee. The middle men are trusted members of their community, and therefore large sums of money move between nations without a single credit or debit into a formal banking system. The middle man is a traditional role played in the Arab world, and has extended itself into terrorist networks. The primary defense against Hawala middle men is to discredit the terrorist networks among the Arab community, alongside revealing middle men who accept payments between terrorist financiers. Because the business of the middle man is based entirely on reputation, there is a heavy price to be paid for submitting oneself to operating a Hawala network in the eyes of liberal and moderate Muslims.

Strategy:

The U.S. Intelligence community…