Perspectives on Terrorism is an initiative of the International Centre for Counter-Terrorism. Visit website
VOL. VII, Issue 4

Terrorism Financing Methods: An Overview

How do terrorists move money? This article examines six of the most widely used methods: cash couriers, informal transfer systems (e.g. hawala), money service businesses, formal banking, false trade invoicing, and high value commodities. When terrorists move money, they choose methods that take into account issues of: volume, risk, convenience, simplicity, costs, and speed. This article analyzes the methods according to these issues. It draws on multiple cases and examples, including the most recent cases of Hezbollah’s and al Shabaab’s use of money service businesses, and many others.

About ICCT

The International Centre for Counter-Terrorism (ICCT) is a think-and-do tank based in The Hague, Netherlands. We provide research, policy advice, training and other solutions to support better counter-terrorism policies and practices worldwide. We also contribute to the scientific and publi.…