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, theyhave 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 terrorist organization ismuch higher than direct attack cost itself, however purpose of the fund needsto be kept secret in both the cases of funding requirement. This gives an ideaand general reason why they use money laundering techniques because they haveto deal with significant amount of money along with making sure to not getdetected by the authority as money laundering technique are designed to avoidunwanted 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 of legitimatebusiness, they want to avoid attention as it can lead to prosecution of theindividual or the entity involved in the transaction.
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The last reason why theyuse laundering schemes to avoid detection and concealment of their trueintention. Technique mention with case study earlier gives us an idea that, howterrorist moving their fund and the above discuss help us to understand thatwhy such activities are being used by the terrorists. Terrorist financingare similar to money launder, it is difficult