Illicit Trade and Terrorism

Terrorist participation in illicit trade is not only about revenue generation. It serves many functions: destruction of history, demoralization of communities, the weakening of social solidarity, and harms individuals’ health and well-being. It also pays for the social service functions of terrorist groups. Over time, the role of the drug trade has become less central to the financing of terrorist groups. Diversification of illicit product has been key to their survival. This is part of the rational trade practices of terrorists: engaged now in less policed forms of illicit trade than narcotics where they can make consistent profits with less threat to their supply chains. Terrorist groups are technically adept and have relied recently more heavily on technology and cryptocurrencies to facilitate the operations of their illicit trade in arms and drugs, increase anonymity, and reduce risk. The United Nations has increasingly recognized the key role that illicit trade assumes in the funding and operations of terrorist groups. Curbing illicit trade by terrorists is not just the responsibility of multinational bodies such as the UN, government, or law enforcement bodies – it requires a whole of society approach including business, civil society, journalists, and researchers.