1 Understanding Terrorist Finance: Challenges and Issues

Notes

1. Peter Reuter and Edwin Truman, Chasing Dirty Money: The Fight Against Money Laundering (Washington DC: Institute for International Economics, 2004), 7. 2. Thomas J. Bierstecker and Sue E. Eckert, “Taking stock of efforts to counter the financing of terrorism and recommendations for the way forward,” ed. Thomas J. Biersteker and Sue E. Eckert, Countering the Financing of Terrorism (Routledge, 2008). 3. Thomas J. Biersteker and Sue E. Eckert, “The politics of numbers in the financial ‘war’ on terrorism,” ed. International Studies Association 49th Annual Convention (presented at the Bridging Multiple Divides, San Francisco, 2008), http://www.allacademic.com/meta/p252246_index.html. 4. Nikos Passas, “Fighting terror with error: the counter-productive regulation of informal value transfers,” Crime, Law and Social Change 45, no. 4 (December 8, 2006): 315–336. 5. Name and employer withheld. Interview with the author (London, Novem- ber 2004). 6. Name withheld. Interview with the author (Washington DC, June 2007). 7. Name and employer withheld. Interview with the author (Amsterdam, May 2009). 8. Name withheld. Interview with the author (Washington DC, Febru- ary 2008). 9. “CSIS developing new model for understanding terrorist financing, documents show,” Canadian Press, April 21, 2008. 10. Name and employer withheld. Author notes of a presentation to a financial industry professional association (New York, April 2009). The speaker was referring to “risk-based” decisions about activity suspected to be involved in terrorist financing. 11. John A. Cassara, Hide and Seek: Intelligence, Law Enforcement, and the Stalled War on Terrorist Finance (Potomac Books Inc., 2006), 197. 12. For example Carolyn Nordstrom, Global Outlaws (University of California Press, 2007); Moisés Naím, Illicit (Doubleday, 2005); P. Andreas, “Illicit international political economy: the clandestine side of globalization,” Review of International Political Economy 11, no. 3 (2004): 641–652. 13. Biersteker and Eckert, Countering the Financing of Terrorism. 14. This structure is inspired by Linklater’s discussion of the basic “points of contention” within the International Relations discipline, in Andrew Linklater, “The question of the next stage in international relations theory: a critical-theoretical view,” Millennium – Journal of International Studies 21, no. 1 (1992).

192 Notes 193

15. So much so, in fact, that neither Russia nor Georgia guards most of the border during the winter. Newspaper Alia, no. 182 (November 25–26, 2000). 16. See Shorena Kurtsikidze and Vakhtang Chikovani, “Georgia’s Pankisi Gorge: an ethnographic survey,” Berkeley Program in Soviet and Post-Soviet Studies Working Paper Series (Spring 2002): 13, note 29. 17. Ibid. 18. See especially Akbar S. Ahmed, Millennium and Charisma Among Pathans: A Critical Essay in Social Anthropology (London: Routledge and Kegan Paul, 1976); Akbar S. Ahmed, “An aspect of the colonial encounter in the northwest frontier province,” Asian Affairs 9, no. 3 (10, 1978): 319–327. 19. Kurtsikidze and Chikovani, “Georgia’s Pankisi Gorge: an ethnographic survey.” 20. George Sanikidze and Edward Walker, “Islam and islamic practices in Georgia,” Berkeley Program in Soviet and Post-Soviet Studies Working Paper Series (Fall 2004): 30. 21. Personal observations of the author (Khevsureti, Georgia, July 2006). 22. Sanikidze and Walker, “Islam and islamic practices in Georgia,” 26. 23. World Bank, World Development Indicators Database, http://ddp-ext. worldbank.org/ext/DDPQQ/member.do?method=getMembers& userid=1& queryId=135 (accessed May 2007). 24. Transparency International, Corruption Perception Index, 2002, http:// www.transparency.org/policy_research/surveys_indices/cpi/2002 (accessed May 2007). 25. Transparency International, Corruption Barometer, 2003, http://www. transparency.org/content/download/1566/8095/file/barometer2003.en.pdf (accessed May 2007). This is the earliest year for which these statistics are available. The proportion of Georgian citizens who felt that corruption somewhat or significantly affected cultures and values was 93.4 percent; political life: 79 percent; business environment: 94.6 percent; and personal and family life: 68.5 percent. 26. This conflict resulted in the forced expulsion of approximately 300,000 ethnic Georgians from their homes in Abkhazia, and their eventual reset- tlement in various parts of the country. 27. United Nations High Commissioner for Refugees (UNHCR), UNHCR 2002 Global Report: Georgia, http://www.unhcr.org/publ/PUBL/3edf4fcf0. pdf (accessed May 2007). 28. United Nations High Commissioner for Refugees (UNHCR), 2002. 29. Newspaper Alia, no. 62 (May 2001). 30. Newspaper Alia, no. 39 (March 2001); Newspaper Alia, no. 62 (May 2001). 31. Newspaper Alia, no. 62 (May 2001). 32. For example, in May 2001 traffic police stopped and searched a suspicious Georgia-registered car in Tskhinvali. The search revealed the occupants, four Chechens and one Georgian, were transporting “Fagot” anti-tank mis- siles, detonators, detonation materials, and a large quantity of money. During questioning in the Tskhinvali police station, one of the Chechens shot a policeman and all managed to escape to a private house, where they took and later killed a hostage, throwing him out of a window. Ossetian special forces ultimately raided the building, killing two of the Chechens and arresting the others. Newspaper Alia, no. 62 (May 2001). 194 Notes

33. Newspaper Alia, no. 109 (September 4–5, 2001). 34. Newspaper Alia, no. 46 (845) (March 23, 2000); Former senior official of Georgian Ministry of State Security, interview by the author, Tbilisi (July 2006). 35. Murad Batal Al-Shishani, “The rise and fall of Arab fighters in Chechnya,” Jamestown Foundation Terrorism Monitor (September 14, 2006); Newspaper Alia, no. 90 (July 21–22, 2001). 36. This term is simply meant to convey that these actors have both trav- eled from abroad, and are engaged in what they believe to be militant operations on behalf of a violent interpretation of radical Islamism, and thus should be seen simply as a catchall term to encompass various—and often conflicting—strands of violent Islamist radicalism, such as salafism and takfirism. For a detailed background on foreign fighters in Chechnya, see Cerwyn Moore and Paul Tumelty, “Foreign fighters and the case of Chechnya: a critical assessment,” Studies in Conflict & Terrorism 31, no. 5 (5, 2008): 412–433. 37. See Brian Glynn Williams, “The ‘Chechen Arabs’: An introduction to the real al-Qaeda terrorists from Chechnya,” Jamestown Foundation Terrorism Monitor 2, no. 1 (January 2004). 38. Newspaper Alia, no. 39 (March 2001); Newspaper Alia, no. 46 (845) (March 23, 2000). 39. Newspaper Alia, no. 191 (December 11, 2000). 40. Moore and Tumelty, “Foreign fighters and the case of Chechnya: a critical assessment,” 422. 41. Sanikidze and Walker, “Islam and Islamic practices in Georgia,” 29. 42. Newspaper Alia, no. 191 (December 11, 2000). 43. See, for example, Al-Shishani, “The rise and fall of Arab fighters in Chechnya” and J. Millard Burr and Robert O. Collins, Alms for Jihad: Char- ity and Terrorism in the Islamic World (Cambridge; New York: Cambridge University Press, 2006). NB: Alms for Jihad engendered some controversy after its publisher was sued for allegedly libelous claims contained in the book. For more information, see: Rachel Donadio, “Libel without borders,” The New York Times, October 7, 2007, sec. Books/Sunday Book Review. 44. See Burr and Collins, Alms for Jihad, Chapter 1. 45. Those that can receive zakat are: “... the Fuqarâ’ (poor), and Al-Masâkin (the poor) and those employed to collect (the funds), and to attract the hearts of those who have been inclined (towards Islâm), and to free the captives, and for those in debt, and for Allâh’s Cause (i.e. for Mujahidûn – those fighting in a holy battle), and for the wayfarer (a traveller who is cut off from everything) ...” At-Taubah 9:60, Abdullah Y. Ali, trans., Holy Qur’an (Medina, Saudi Arabia: The Presidency of Islamic Researches, IFTA, Call and Guidance, 2010). 46. Quoted in Burr and Collins, Alms for Jihad, 13, note 5. 47. Magnus Ranstorp, “The virtual sanctuary of al-Qaeda and terrorism in an age of globalization,” ed. Johan Eriksson and Giampiero Giacomello, Inter- national Relations and Security in the Digital Age, 1st edition (Routledge, 2007), 42. Notes 195

48. Interpol, “United Nations Security Council Special Notice, Al-Ahdal Mohammad Hamdi Mohammad Sadiq,” September 25, 2010, http://www. interpol.int/public/data/noticesun/notices/data/2010/42/2010_6442.asp. 49. Al-Shishani, “The rise and fall of Arab fighters in Chechnya.” 50. Newspaper Alia, no. 54 (May 7–8, 2002). Former senior official of Georgian Ministry of State Security, interview by the author, Tbilisi (July 2006). 51. Contemporary news reports simply state that American agents made con- tact with “Chechen field commanders.” However, given that Gelayev was the field commander of Chechen militants operating within Georgia and that the foreign fighters later arrested had been subject to his command, it is unlikely that American officials would have dealt with any other Chechen militant leader other than Gelayev. 52. Newspaper Alia, no. 54 (May 7–8, 2002). 53. Ibid. 54. See for example Steve Coll, Ghost Wars, 1st edition (Penguin Press, 2004). 55. Khattab was considered to be the head of al-Qa’ida (that is, foreign jihadist fighters) in Chechnya. 56. Newspaper Alia, no. 54 (May 7–8, 2002). 57. A combination of its geographic location, high levels of corruption, and a desire to become a key overland trade route. 58. See U.S. Department of State, International Narcotics Control Strategy Report 2001, available at http://www.state.gov/p/inl/rls/nrcrpt/2001/rpt/; U.S. Department of State, International Narcotics Control Strategy Report 2002, available at http://www.state.gov/p/inl/rls/nrcrpt/2002/html/. 59. Irakli Chikhladze, “Traffic control,” Caucuses Reporting Service, Institute for War & Peace Reporting (IWPR), August 24, 2001, http://iwpr.net/print/report- news/traffic-control. 60. Newspaper Alia, no. 130 (August 19–20, 2000). The U.S. Department of State cited Georgia throughout the period as “a secondary transit route for narcotics flowing from Afghanistan, transiting Central Asia to Europe.” U.S. Department of State, International Narcotics Control Strategy Report 2001, available at http://www.state.gov/p/inl/rls/nrcrpt/2001/rpt/. 61. U.S. Department of State, International Narcotics Control Strategy Report 2001. 62. Ibid. 63. Newspaper Alia, no. 3 (January 8, 2001). The U.S. Department of State con- tradicted this in a 2001 report, stating, “There is no known ...synthetic drug production in Georgia.” U.S. Department of State, International Narcotics Control Strategy Report 2001. 64. The imported notes were of sufficient quality as to require special equipment for detection. Newspaper Alia, no. 38 (837) (March 9–10, 2000). See also “Newsline – June 12, 2000,” Radio Free Europe/Radio Liberty, June 12, 2000, sec ...Plight of Displaced Persons, Chechen Refugees, http://www. rferl.org/content/article/1142174.html. 65. Jaba Devdariani, “Georgia’s Pankisi dilemma,” Caucuses Reporting Service, Institute for War & Peace Reporting (IWPR) (January 25, 2002), http://iwpr. net/print/report-news/georgias-pankisi-dilemma. 66. Newspaper Alia, no. 191 (December 4, 2000); Newspaper Alia, no. 130 (August 19–20, 2000). 196 Notes

67. “An SVR Veteran and a Chechen separatist urge that Russia and Chechnya join forces against the Wahhabis—and the United States,” North Cau- cuses Analysis 2, no. 27 (July 1, 2001); Mairbek Vatchagaev, “Who’s who in the Moscow Chechen community,” North Caucuses Analysis 9, no. 26 (July 3, 2008). 68. Newspaper Alia, no. 8 (July 3–4, 2001). 69. Ibid. 70. Ibid. 71. “An SVR Veteran and a Chechen separatist urge that Russia and Chechnya join forces against the Wahhabis—and the United States.” 72. Burr and Collins, Alms for Jihad, 38. 73. Ibid., 39. 74. The act of preaching Islam or spreading the word of God. 75. Newspaper Alia, no. 121 (September 26, 2001). According to Vakhtang Kutateladze, then-Georgian Minister of State Security, this money was intended for transporting militants under humanitarian guise. 76. Burr and Collins, Alms for Jihad, 39. 77. V. Khaburdzania, Minister of State Security of Georgia, quoted in Newspaper Alia, no. 24 (February 2002); Burr and Collins, Alms for Jihad, 39. 78. Source for BIF affiliation: “Annex to the note verbale dated 22 April 2003 from the Permanent Mission of the Russian Federation to the United Nations addressed to the Chairman of the Committee,” April 22, 2003, http://www.nti.org/e_research/official_docs/inventory/pdfs/al- QaedaT_russia20030422.pdf. 79. Newspaper Alia, no. 134 (August 26–27, 2000). 80. Burr and Collins, Alms for Jihad, 174–175. 81. “Suburban Chicago-based international charity and its director charged with perjury relating to alleged terrorist activity,” Statement by United States Attorney Northern District of Illinois Patrick J. Fitzgerald United States Attorney (April 30, 2002). 82. “Suburban Chicago-based international charity and its director charged,” Statement by Patrick J. Fitzgerald, 2002. 83. United Nations Office for the Coordination of Humanitarian Affairs (OCHA), Georgia Information Bulletin for the period 21–28 Feb 2001 (February 28, 2001). 84. Mamuka Komakhia, “Update from Pankisi valley: medical and psycholog- ical problems of Chechen refugees,” UN Association Georgia (UNGA) Team Report, no. 5 (UNGA and UNHCR, 2000). 85. International Federation of Red Cross and Red Crescent Societies (IFRC), July 25, 2001, http://www.reliefweb.int/rw/RWB.NSF/db900SID/ OCHA-64BV8R?OpenDocument&emid=ACOS-635NPP. This encompasses all costs for providing health, medical, nutrition, and other related service (including administrative) in Pankisi Gorge. Exchange rate cal- culated for April 1, 2000. The entire aid budget for UNHCR for all of Georgia—including services to 300,000 refugees from the Abkhazian conflict—was only $6 million. See United Nations High Commissioner for Refugees, UNHCR Global Report 1999, http://www.unhcr.org/publ/PUBL/ 3e2d4d553. pdf. 86. Burr and Collins, Alms for Jihad, 174–175. Notes 197

87. United States Treasury Office of Public Affairs, “Treasury Designates Benev- olence International Foundation and Related Entities as Financiers of Terrorism” (November 19, 2002). 88. Interview with former member of UN Association Georgia team in Pankisi Gorge. Tbilisi, July 2006 and email follow up, March 2007. 89. Al-Shishani, “The rise and fall of Arab fighters in Chechnya.” 90. Personal observations of the author (Khevsureti, July 2006); Kurtsikidze and Chikovani, “Georgia’s Pankisi Gorge: an ethnographic survey.” 91. Former senior official of Georgian Ministry of State Security, interview by the author, Tbilisi (July 2006). 92. Sozar Subeliani, “Gun-running in Georgia,” Caucuses Reporting Service, Insti- tute for War & Peace Reporting (IWPR), January 14, 2000, http://iwpr.net/ print/report-news/gun-running-georgia. 93. Ibid. 94. Although regional-level forces were seen to be much less corrupt. Newspaper Alia, no. 191 (December 11, 2000). 95. Ibid. 96. Newspaper Alia, no. 53 (April 30–May 1, 2002). 97. Former senior official of Georgian Ministry of State Security, interview by the author, Tbilisi (July 2006). 98. Newspaper Alia, no. 130 (August 19–20, 2000). 99. Newspaper Alia, no. 191 (December 11, 2000). 100. United Nations Association of Georgia, “Georgia denies detention of convoy with arms in Pankisi” (May 24, 2002). 101. Newspaper Alia, no. 191 (December 11, 2000). 102. Newspaper Alia, no. 90 (July 21–22, 2001). 103. Newspaper Alia, no. 191 (December 11, 2000). The Georgian police stationed in Pankisi were apparently often frightened of the boeviks, as they were heavily armed, well disciplined, and several Georgian police were in fact kidnapped and ransomed by Chechen fighters over the period, typically in revenge for not facilitating movement of money, supplies, or people, as arranged. 104. Khevsur elders, interview by the author, Khevsureti, Georgia (July 2006). 105. UNHCR Branch Office, Tbilisi, Georgia, July 2005, http://www.ungeorgia. ge/cgi-bin/show_agency.pl?name=unhcr_accomplishment. 106. Newspaper Alia, no. 53 (April 30–May 1, 2002). 107. For example, polygamy and the teaching of Wahhabist interpretations of Islam. Kurtsikidze and Chikovani, “Georgia’s Pankisi Gorge: an ethnographic survey”; Al-Shishani, “The rise and fall of Arab fighters in Chechnya.” 108. Kurtsikidze and Chikovani, “Georgia’s Pankisi Gorge: an ethnographic survey,” 17. 109. Alex Schmid, “The response problem as a definition problem,” ed. Ronald D. Crelinsten and Alex P. Schmid, Western Responses to Terrorism (Routledge, 1993), 7. 110. Bruce Hoffman, Inside Terrorism (Columbia University Press, 1999), 1. 111. This is the dictionary definition of support, which is as good a starting point as any. 112. United States Code: Title 18: Section 2339A. 198 Notes

113. For example, training camps can be characterized as the use of monetary resources to add value to personnel, that is, to convert monetary value into labor value. 114. See, for example, John T. Picarelli and Louise I. Shelley, “Organized crime and terrorism,” ed. Jeanne K. Giraldo and Harold A. Trinkunas, Terrorism Financing and State Responses: A Comparative Perspective (Stanford University Press, 2007), 40; Phil Williams, “Warning indicators, terrorist finances, and terrorist adaptation,” Strategic Insights 4, no. 1 (January 2005): 5, http:// www.ccc.nps.navy.mil/si/2005/jan/williamsJan05.pdf. 115. Quoted in Don Van Natta and Joe Becker, “Bank reports sparked investigation of prostitution ring and Spitzer wire transfers,” The New York Times, March 13, 2008, http://www.nytimes.com/2008/03/13/world/americas/ 13iht-spitzer.4.11054461.html?pagewanted=print. 116. See Pierre Bourdieu, Distinction: A Social Critique of the Judgement of Taste, trans. Richard Nice (Harvard University Press, 1984). 117. J.C. Sharman, “Privacy as Roguery: personal financial information in an age of transparency,” Public Administration 87, no. 4 (12, 2009): 719–720. 118. Marieke de Goede, “Beyond economism in international political economy,” Review of International Studies 29, no. 01 (January 11, 2003): 81. 119. Ibid. 120. Jean MacKenzie, “Are US taxpayers funding the Taliban,” GlobalPost, September 2, 2009, http://www.globalpost.com/dispatch/afghanistan/ 090902/usaid-taliban-funding. 121. Ibid. 122. Marieke de Goede, “Money, media and the anti-politics of terrorist finance,” European Journal of Cultural Studies 11, no. 3 (2008): 292. 123. Ibid. 124. Ibid., 293. 125. Ibid. 126. “President freezes terrorists’ assets: remarks by the president, secretary of the treasury O’Neill and secretary of state Powell on executive order,” September 24, 2001, http://www.whitehouse.gov/news/releases/2001/09/ 20010924-4.html (accessed October 27, 2007). 127. Ibid. 128. Ibid. 129. Ibid. 130. No comprehensive statistic of the exact amount frozen or seized is available. Although the United States, the United Kingdom, and other countries have frozen or confiscated hundreds of millions of dollars under CTF-related provisions, much of this money has been subsequently been “unfrozen,” actions that are often not reported or reported much later. Discussions of these problems can be found in Biersteker and Eckert, “The politics of numbers in the financial ‘war’ on terrorism,” ed. Ibrahim Warde, The Price of Fear (University of California Press, 2008). 131. Especially via suspicious activity reports (SARs) and currency transaction reports (CTRs). For a discussion of terrorist financing related surveillance and reporting, see for instance, Sue Eckert, “The U.S. Regulatory Approach to Terrorist Financing,” ed. Biersteker and Eckert, Countering the Financing Notes 199

of Terrorism and R.T. Naylor, Satanic Purses: Money, Myth, And Misinformation in the War on Terror, 1st ed. (McGill-Queen’s University Press, 2006). 132. Donald H. Rumsfeld, “A new kind of war,” The New York Times, September 27, 2001, sec. Opinion, http://www.nytimes.com/2001/09/27/ opinion/27RUMS.html. 133. John Snow, “The global war on terrorist finance,” US Department of State Economic Perspectives (September 2004): 2. 134. For more discussion of how terrorist finance is mediated through different discourses, see the works of Marieke de Goede, especially “Money, media and the anti-politics of terrorist finance”; “Underground money,” Cultural Critique-Telos Press- 65 (2007): 140; “The Politics of preemption and the war on terror in Europe,” European Journal of International Relations 14, no. 1 (March 1, 2008): 161–185; “Hawala discourses and the war on terrorist finance,” Environment and Planning D 21, no. 5 (2003): 513–532. 135. The content of this graphic is based on both Wesley Anderson, Disrupt- ing Threat Finances: Utilization of Financial Information to Disrupt Terrorist Organizations in the Twenty-First Century (Fort Leavenworth, Kansas: U.S. Command and General Staff College, 2007), 28–54; and the personal observations, assumptions, and deductions of the author. 136. John Horgan and Max Taylor, “Playing the “green card”: financing the provisional IRA: part 1,” Terrorism and Political Violence 11, no. 2 (June 22, 2003): 41; “Playing the ‘green card’: financing the provisional IRA: part 2,” Terrorism and Political Violence (January 1, 2003). 137. Marieke de Goede, “Financial regulation and the war on terror,” ed. Libby Assassi, Duncan Wigan, and Anastasia Nesvetailova, Global Finance in the New Century: Beyond Deregulation (New York: Palgrave Macmillan, 2007). 138. Cassara, Hide and Seek. 139. For example, Marieke de Goede, “Hawala discourses and the war on terrorist finance,” Environment and Planning D (January 1, 2003), http://www. envplan.com/epd/editorials/d310t.pdf. 140. Eleni Tsingou, “Who governs and why: the making of the global anti- money laundering regime,” ed. Geoffrey Underhill, Global Financial Integra- tion Thirty Years on: From Reform to Crisis (Cambridge: Cambridge University Press, 2010). 141. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 142. This bibliography can be found on the Watson Institute’s Web site, located at: http://www.watsoninstitute.org/project_detail.cfm?id=51. 143. For example, they are faculty members within departments of Interna- tional Relations, Political Science, or similar. These IR works are Aydinli, E., “From finances to transnational mobility: searching for the global Jihadists’ Achilles Heel,” Terrorism and Political Violence 18, no. 3 (2006): 301–313; Basile, M. “Going to the source: why Al-Qaeda’s financial network is likely to withstand the current war on terrorist financing,” 27, no. 3 (2004): 169–188; Horgan, J. and M. Taylor, “Playing the ‘Green Card’—financing the provisional PIRA: part 2,” Terrorism & Political Violence 15, no. 2 (2003): 1–60; Horgan, J. and M. Taylor, “Playing the green card: 1,” Terrorism and Political Violence 11, no. 1 (1999): 1–38; Levitt, M., “Stemming the flow of terrorist financing: practical and conceptual challenges,” The Fletcher Forum of World Affairs 27, no. 1 (2003): 59–70; Passas, N., “Cross-border crime 200 Notes

and the interface between legal and illegal actors,” Security Journal 16, no. 1 (2003): 19–37; Napoleoni, L., “Terrorist financing: how the new genera- tion of Jihadists funds itself,” RUSI Journal 151, no. 1 (2006): 60–65; Winer, J.M. and Roule, T.J., “Fighting terrorist finance,” Survival 44, no. 3 (2002): 87–104. 144. Quote from Gary Gutting, “Michel Foucault,” ed. Edward Zalta, The Stanford Encyclopedia of Philosophy, 2010, http://plato.stanford.edu/entries/ foucault/. For Foucault’s account, see especially Michel Foucault, Discipline and punish: the birth of the prison (Vintage Books, 1979); The order of things: An archaeology of the human sciences (Tavistock, 1970). 145. Keith Dowding, “Three-dimensional power: a discussion of Steven Lukes’ Power: a radical view,” Political Studies Review 4, no. 2 (5, 2006): 136. 146. Steven Lukes, Power: A Radical View, 2nd ed. (Palgrave Macmillan, 2005). 147. Ibid., 19. 148. Ibid., 24–25. 149. Ibid., 28. 150. Notable exceptions that exemplify this rarity are the Al-Qa’ida in Iraq Financial and Accounting documents, collected and translated by the Com- bating Terrorism Center at West Point. Available for download at http:// www.ctc.usma.edu/harmony/pdf/summaries%20in%20pdfs/Financial%20 and%20Accounting.pdf. 151. John Horgan, “Interviewing terrorists: a case for primary research,” ed. Hsinchun Chen et al., Terrorism Informatics: Knowledge Management and Data Mining for Homeland Security, 1st ed. (Springer, 2008). 152. For a discussion, see especially Warde, The Price of Fear; Naylor, Satanic Purses. 153. Alexander Kupatadze, “Organized crime before and after the Tulip Revolu- tion: the changing dynamics of upperworld-underworld networks,” Central Asian Survey 27, no. 3 (November 3, 2008): 280. 154. For reference, this is largely the same presumption used by several major intelligence agencies, which relevantly obtain much—if not most—of their data on terrorist financing issues from either “open sources” (that is, published media accounts) or the “gray literature” (unpublished but not confidential documents, such as commissioned analyses or some interview notes). Interviews with six analysts from three different agencies within the US intelligence community, January and July 2008. Each analyst was asked about the general extent to which their offices utilized open source and gray literature information for terrorist financing related analysis. Also, see Dax R. Norman, “How to identify credible sources on the web,” Thesis for the Joint Military Intelligence College, December 9, 2001 for an extended discussion about how the US intelligence community measures credibility, reliability, and validity of open and other sources. 155. United States Department of State, “Georgia,” 1999 Country Reports on Human Rights Practices (Washington DC: Bureau of Democracy, Human Rights, and Labor, February 23, 2000); and United States Depart- ment of State, “Georgia,” 2003 Country Reports on Human Rights Prac- tices (Washington DC: Bureau of Democracy, Human Rights, and Labor, February 25, 2004). Notes 201

156. Citations include Izvestia: http://www.izvestia.ru/world/article3113263/ and the Press Folder (a Russian news aggregation website): http://www. etpress.ru/periodicals/?content=periodical&id=6. 157. For discussions of problems with current research on terrorist ﬁnancing, see for example, Thomas J. Bierstecker and Sue E. Eckert, “Taking stock of efforts to counter the ﬁnancing of terrorism and recommendations for the way forward,” and Jeroen Gunning, “Terrorism, charities, and diasporas,” ed. Biersteker and Eckert, Countering the Financing of Terrorism; Reuter and Truman, Chasing Dirty Money; and Warde, The Price of Fear.

2 Terrorist Finance: Myth and Reality

1. For example, in a typical case the Swedish Financial Supervisory Author- ity fined Forex, a northern European foreign exchange conglomerate, 50 million kronor ($7.8 million) for failing to demonstrate adequate implementation of internal CTF and anti-money laundering (AML) policies. Deutche Presse-Agentur, “Foreign exchange bureau fined by financial watchdog,” October 1, 2008. 2. National Security Strategy of the United States of America, 2006. 3. N. Passas and K. Jones, “Commodities and terrorist financing: focus on diamonds,” European Journal on Criminal Policy and Research 12, no. 1 (November 2, 2006): 1–33. The authors note about the embassy bombings trial records that “If all statements made by the witnesses at that trial are to be accepted at face value (which is a questionable undertaking), it becomes clear that import–export business is a major source of funds for AQ or its associates. Gems and diamonds are far from prevalent among them; rather, the goods and other kinds of trade that can be used are innu- merable. The ones mentioned in the course of this trial included animal hides, asphalt, assembly of watches, bananas, bicycles, butcher equipment, calculators, camels, canned food, cars and tires, cement, coffee, corn, coal, diamonds, deer, fava beans, fish, gold, hibiscus, honey, gemstones, insec- ticides, iron, lathing machines, leather, lemons, ostriches and ostrich eyes, palm oil, peanuts, salt, seeds, sesame, shower pipes, soap, sugar, sunflower, tannery, tanzanite, textiles, tractors and tractor parts, wheat, and wood. Not only is the trade in diamonds just one of the many possible funding sources but also many statements at the trial were about the intent and unsuccessful attempts by the AQ operatives to get involved in this trade and are hearsay. It is also unclear if all references to such activities were a part of the individuals” occupation or of AQ fund-raising operations,’ 18. 4. Cassara, Hide and Seek, 215. 5. Yaroslav Trofimov, “U.S. rebuilds power plant, Taliban reap a windfall,” wsj.com, July 13, 2010, sec. World News, http://online.wsj.com/article/ SB10001424052748704545004575352994242747012.html?KEYWORDS= YAROSLAV+TROFIMOV#printMode. 6. Ibid. 7. United Nations Office of Drugs and Crime, Afghanistan Opium Sur- vey 2009 (Vienna: UNODC, 2009), 7, http://www.unodc.org/documents/ crop-monitoring/Afghanistan/Afgh-opiumsurvey2009_web.pdf. See also 202 Notes

Gretchen Peters, Seeds of Terror: How Heroin Is Bankrolling the Taliban and al Qaeda (Thomas Dunne Books, 2009). 8. Gretchen Peters, How Opium Profits the Taliban (Washington DC: United States Institute of Peace, 2009). 9. Edwina Thompson, “The nexus of drug trafficking and hawala in Afghanistan,” ed. Doris Buddenberg and William A. Byrd, Afghanistan’s Drug Industry: Structure, Functioning, Dynamics, and Implications for Counter- Narcotics Policy, (Washington DC: United Nations Office on Drugs and Crime and the World Bank, 2006), 158, http://siteresources.worldbank. org/SOUTHASIAEXT/Resources/Publications/448813-1164651372704/ UNDC.pdf. 10. That is, the goods are simply off-loaded before arrival into Afghanistan, usually for resale in Pakistan, but relevant trade invoices and declara- tions will falsely state the goods were indeed imported into Afghanistan. In other cases, goods that have arrived via the ATT are often simply driven a short way across the border into Afghanistan and then illegally returned to Pakistan for resale. For more detailed description of the ATT, see John Cassara and Avi Jorisch, On the Trail of Terror Finance: What Law Enforcement and Intelligence Officials Need to Know (Red Cell IG, 2010), 82–89; Thompson, “The nexus of drug trafficking and hawala in Afghanistan,” 158–159. 11. Peters, How Opium Profits the Taliban, 13. Cassara and Jorisch, On the Trail of Terror Finance, 86. 12. Refers to primary base of operation. Source: “Terrorist Group Profiles,” US Naval Postgraduate School Web site: http://www.nps.edu/library/ research/subjectguides/specialtopics/terroristprofile/terroristgroupprofiles. html (accessed October 15, 2010) and “Foreign Terrorist Organizations,” National Counterterrorism Center Web site: http://www.nctc.gov/site/ other/fto.html (accessed October 15, 2010). NB: Locations of logistical or minor bases of operation are not included in this table because this information was not readily available for all groups. Future research will include this data. 13. Source unless otherwise noted: Patrick Honohan, “Cross-country variation in household access to financial services,” Journal of Banking & Finance 32, no. 11 (November 2008): 2493–2500. See also Alberto Chaia et al., Half the World is Unbanked (Financial Access Initiative, 2009), 11–15. 14. Relevance estimated according to how many people have access to for- malized financial services in the countries where terrorist groups operate. When a terrorist group operates in multiple areas, relevance is estimated by an unweighted average (that is, not weighted for population size), given that if the group is active in a particular country, it will have access to non-formal financial services in ways irrespective of population size. Legend: High Relevance = more than 80 percent with access; Moderate Relevance = 50–79 percent access; Low Relevance = 21–49 percent access; Negligible Relevance = fewer than 20 percent with access. 15. No data are available for access to formal financial services among the Afghan population, but it can be assumed to be lower than 20 percent. 16. No data are available for access to formal financial services among the Somali population, but it can be assumed to be lower than 20 percent. Notes 203

17. No data are available for access to formal financial services among the Japanese population, but it can be assumed to be greater than 80 percent. 18. Alissa J. Rubin, Charlie Savage and Rod Nordland, “Regulators ignored warnings about Afghan bank,” The New York Times, September 18, 2010, sec. World, http://www.nytimes.com/2010/09/19/world/19kabul. html?pagewanted=print. 19. No data are available for access to formal financial services among the Israeli population, but it can be assumed to be greater than 50 percent. 20. U.S. Department of the Treasury, Assistant Secretary for Terrorist Financing David S. CohenRemarks on Terrorist Financing before the Council on Foreign Relations As Prepared for Delivery, Press Release (Washington DC, January 28, 2010), http://www.ustreas.gov/press/releases/tg515.htm. 21. Web site of Da Afghanistan Bank [the Central Bank], http://www. centralbank.gov.af/licensed-financial-institutions.php (accessed October 23, 2010), and Savage and Nordland, “Regulators ignored warnings about Afghan bank.” 22. Cassara, Hide and Seek. 23. Nordstrom, Global Outlaws. 24. Training camps are essentially a value transfer—taking money already gen- erated and using it to increase the value of something already purchased (in this case, terrorist labor). 25. de Goede, “Beyond economism in international political economy.” 26. For example, to illustrate the diversity of views of capital, two different well-established conceptualizations of these other forms of capital include that presented in Robert D. Putnam, Bowling Alone: The Collapse and Revival of American Community (Simon & Schuster, 2001); John G. Richardson, Handbook of Theory and Research for the Sociology of Education (Greenwood Press, 1986). 27. U.S. Department of the Treasury, “Press release: treasury designates Al-Qai’da finance section leader,” August 24, 2010, http://treas.gov/press/ releases/tg838.htm. 28. Rohan Gunaratna, Inside Al Qaeda, First Edition (Columbia University Press, 2002), 81–82. 29. Bruce Hoffman, “The leadership secrets of Osama bin Laden: the terrorist as CEO,” The Atlantic Monthly, April 2003. 30. R.T. Naylor, Wages of Crime: Black Markets, Illegal Finance, and the Underworld Economy (Cornell University Press, 2002). 31. Matthew Levitt, HAMAS: Politics, Charity, and Terrorism in the Service of Jihad (Yale University Press, 2007), 5. 32. Loretta Napoleoni, “Money and terrorism,” Strategic Insights, April 2004. 33. “President freezes terrorists’ assets: remarks,” 2007. 34. Ibid. 35. See, for example, the Web site www.divestterror.org, whose motto is “Empowering American Investors to Fight Terrorism.” (Accessed October 12, 2010). 36. United States Treasury, “Treasury designation targets Hizbullah’s bank,” Press Release, September 7, 2006, http://www.ustreas.gov/press/releases/ hp83.htm (accessed April 10, 2008). 204 Notes

37. Matthew Levitt, “Adding Hizbullah to the EU terrorist list,” Testimony to the Committee on Foreign Affairs, Subcommittee on Europe, United States House of Representatives, June 20, 2007, http://foreignaffairs.house.gov/110/ lev062007.htm (accessed April 20, 2008). 38. This phrase was used in Nordstrom, Global Outlaws. 39. “Cocaine, Al Qaeda and tropical gangsters,” StrategyPage, July 4, 2010, http://www.strategypage.com/htmw/htterr/articles/20100704.aspx. 40. Liana Sun Wyler and Nicholas Cook, Illegal Drug Trade in Africa: Trends and U.S. Policy (Washington DC: Congressional Research Service, 2010); Scott Baldauf, “Air Al Qaeda: are Latin America’s drug cartels giving Al Qaeda a lift?,” The Christian Science Monitor, January 15, 2010, http://www. csmonitor.com/World/2010/0115/Air-Al-Qaeda-Are-Latin-America-s-drug- cartels-giving-Al-Qaeda-a-lift. 41. Michel de Certeau, The Practice of Everyday Life, trans. Steven Rendall (University of California Press, 1988). 42. Victor Comras, “Al-Qaeda finances and funding to affiliated groups,” Strate- gic Insights (Center for Contemporary Conflict) IV, no. 1 (January 2005). 43. See Jeroen Gunning, “Terrorism, charities, and diasporas,” ed. Biersteker and Eckert, Countering the Financing of Terrorism. 44. See also Reuter and Truman, Chasing Dirty Money,3. 45. Robert Looney, “The mirage of terrorist financing: the case of Islamic charities,” Strategic Insights V, no. 3 (March 2006). 46. See John Roth, Douglas Greenberg, and Serena Wille, Staff Report to the Commission: Monograph on Terrorist Financing (Washington DC: National Commission on Terrorist Attacks Upon the United States, 2004). 47. “Judge allows suits against bank for paying bombers’ relatives,” The New York Times, September 3, 2005, http://query.nytimes.com/gst/fullpage. html?res=9501E3DC1431F930A3575AC0A9639C8B63&pagewanted=print; Lloyd de Vries, “Arab bank sued over Israel terror,” CBSNews.com, July 6, 2004, http://www.cbsnews.com/stories/2004/07/06/terror/main 627703.shtml?CMP=ILC-SearchStories. 48. Roddy Boyd, “Arab bank terror financing case to go forward,” New York Post, January 31, 2007, http://www.nypost.com/p/news/business/item_ W7Hy8dDJk4OBjWvfoidrUK;jsessionid=1D9B6081CFE8050574E8275BFC 26B774; “Judge allows suits against bank for paying bombers’ relatives.” 49. Casualty figures do not include perpetrators. 50. First report of the Analytical Support and Sanctions Monitoring Team appointed pursuant to resolution 1526 (2004) concerning Al-Qaida and the Taliban and associated individuals and entities (United Nations Security Council, August 25, 2004), 12. 51. Ibid. 52. Roth, Greenberg, and Wille, Staff Report to the Commission. 53. First report of the Analytical Support and Sanctions Monitoring Team appointed pursuant to resolution 1526 (2004) concerning Al-Qaida and the Taliban and associated individuals and entities, 12. 54. Ibid. 55. “The Madrid train bombings and what happened next,” Reuters AlertNet, February 14, 2007. Notes 205

56. Craig Whitlock, “Al-Qaeda masters terrorism on the cheap,” The Washington Post, August 24, 2008, http://www.washingtonpost.com/wp- dyn/content/article/2008/08/23/AR2008082301962.html. 57. This refers to the belief that Osama bin Laden bankrolls al-Qa’ida from his own personal fortune, which is supposedly hidden in various places around the world. See Roth, Greenberg, and Wille, Staff Report to the Commission. 58. Peters, Seeds of Terror. 59. Hoffman, Inside Terrorism, 84–85. Figures adjusted into 2005 dollars. GDP data from International Monetary Fund, World Economic Outlook Database, April 2006. As GDP data were not available for Liberia, Somalia, Cuba, North Korea, Iraq, and several small states in Europe (Andorra, Monaco, San Marino, Liechtenstein, Vatican City) and the Pacific (Palau, Marshall Islands, Micronesia, Nauru and Tuvalu), the number of countries poorer than the PLO is likely more than 21. 60. A significant knowledge-building opportunity exists relevant to these issues. 61. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 62. The exceptions would be “follow the money” approaches that focus on monitoring terrorist financing activity for other purposes, such as prosecu- tions of law-breaking, counterterrorism actions, and intelligence analysis. 63. See Chapter 1 for discussion. 64. Thank you to Gennaro Buonocore for this insight. 65. While there are no available data to confirm these claims, I argue that they are nevertheless workable assumptions unless and until proven otherwise. 66. Gilles Kepel, Jihad: The Trail of Political Islam (Belknap Press, 2002), 31, 219. 67. Levitt, Hamas, 54. 68. Global Terrorism Database, National Consortium for the Study of Terrorism and Responses to Terrorism, University of Maryland. Results for “Inci- dents over time” and “Perpetrator: Hamas (Islamic Resistance Movement)” searched October 23, 2010. 69. Levitt, Hamas,5. 70. Charles Grenier, former head of the CIA’s Counterterrorism Center, quoted in Josh Meyer, “Terrorism money is still flowing,” Los Angeles Times, March 24, 2008. 71. Reuter and Truman, Chasing Dirty Money. This refers to the macro level. There have been a few individual cases where financial intelligence has produced information that has led police to foil individual plots. 72. Michael A. Ledeen, The War Against the Terror Masters: Why It Happened. Where We Are Now. How We’ll Win (Truman Talley Books, 2002), 41. 73. Loretta Napoleoni, “The new economy of terror,” open Democracy, January 26, 2005, http://www.mafhoum.com/press7/225E61.htm. 74. See, for example, Paul Allan Schott, World Bank, and International Mon- etary Fund, Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism (World Bank Publications, 2006), Chapter 1. 75. Warde, The Price of Fear, 37. 76. See, for example, Stefan D. Cassella, “Money laundering, terrorism, regulation, laws and legislation,” Journal of Money Laundering Control 7, no. 1 (2003): 92. 206 Notes

77. James Gillespie, “Follow the money: tracing terrorist assets,” Seminar on International Finance, Harvard Law School (April 15, 2002), 15. 78. Financial Action Task Force, “FATF IX special recommendations,” October 2001, http://www.fatf-gafi.org/dataoecd/8/17/34849466.pdf. 79. The year the last country, Myanmar, was removed from the FATF Non- Cooperative Country and Territories List (NCCT). 80. Warde, The Price of Fear, 36. 81. William Wechsler, Treasury Special Advisor to the Secretary and Deputy Secretary William F. Wechsler, Testimony Before the House Committee on Gov- ernment Reform, Subcommittee on Criminal Justice, Drug Policy and Human Resources (June 23, 2000). Wechsler was the Special Adviser to the US Secre- tary of the Treasury from 1999 to 2001. 82. Warde, The Price of Fear. 83. Jude McCulloch and Sharon Pickering, “Pre-crime and counter-terrorism,” British Journal of Criminology 49, no. 5 (2009): 628–645; de Goede, “The politics of preemption and the war on terror in Europe”; J. Mcculloch, “Suppressing the financing of terrorism: proliferating state crime, eroding censure and extending neo-colonialism,” British Journal of Criminology 45, no. 4 (July 1, 2005): 470–486. 84. See, for example, Marieke de Goede, “The risk of terrorist financing: politics and prediction in the war on terrorist finance,” Constructing World Orders Conference (2004); Louise Amoore and Marieke de Goede, “Governance, risk and dataveillance in the war on terror,” Crime, Law and Social Change 43, no. 2 (April 1, 2005): 149–173. 85. See, for example, de Goede, “The risk of terrorist financing: politics and prediction in the war on terrorist finance”; Amoore and de Goede, “Governance, risk and dataveillance in the war on terror.” 86. For further discussion of these analogies, see Naylor, Wages of Crime; Nordstrom, Global Outlaws. 87. Amoore and de Goede, “Governance, risk and dataveillance in the war on terror,” 168. 88. See Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001. 89. Amoore and de Goede, “Governance, risk and dataveillance in the war on terror.” 90. Sabrina Tavernise and Waqar Gillani, “Frustrated strivers in Pakistan turn to Jihad,” The New York Times, February 27, 2010, sec. World/Asia Pacific, http://www.nytimes.com/2010/02/28/world/asia/28youth.html? sudsredirect=true&pagewanted=print. 91. See Cassara, Hide and Seek. 92. See Ibid. 93. James Harrington, quoted in John Adams, Novanglus Papers, no. 7, Vol. 4, in The Works of John Adams, ed. Charles Francis Adams, 106 (1851). 94. Nordstrom, Global Outlaws, 19. 95. See, for example, Moises Naim, Illicit (London: William Heinemann, 2005) for more discussion about how supposedly opposing groups regularly “do business” with one another. 96. For a description of this evolution, see Reuter and Truman, Chasing Dirty Money. Notes 207

97. See for example Tsingou, “Who governs and why: the making of the global anti-money laundering regime,” ed. Underhill, Global Financial Integration Thirty Years On. 98. UNSCR 1189, 1998. 99. See, for example, Ole Waever, “Securitization and desecuritization,” in Security: A New Framework for Analysis (Boulder: Lynne Reinner, 1998). 100. Ron Suskind, The One Percent Doctrine: Deep Inside America’s Pursuit of Its Enemies Since 9/11, First Edition (Simon & Schuster, 2006). 101. Ibid. 102. See the Egmont Group’s worldwide list of FIUs at http://www.egmontgroup. org%2Flist_of_fius.pdf. Other examples include the U.S. Treasury’s Office of Terrorism and Financial Intelligence (TFI), the Federal Bureau of Investiga- tion’s Terrorist Financing Operations Section (TFOS). 103. Sharman, “Privacy as roguery: personal financial information in an age of transparency.” 104. Hoffman, Inside Terrorism,1. 105. de Goede, “Money, media and the anti-politics of terrorist finance.” 106. Ibid., 293. 107. See, for example, Tim Parkman and Gill Peeling, Countering Terrorist Finance: A Training Handbook for Financial Services (Gower Publishing, Ltd., 2007), 34. 108. de Goede, “Money, media and the anti-politics of terrorist finance,” 292. 109. See, for example, Levitt, Hamas; Rachel Ehrenfeld, Funding Evil, Updated: How Terrorism is Financed and How to Stop It, Expanded (Bonus Books, 2005). 110. Roth, Greenburg, and Wille, Staff Report to the Commission, 47. 111. de Goede, “Beyond economism in international political economy.” 112. Mark Duffield, Development, Security and Unending War: Governing the World of Peoples (Polity, 2007), 2–3. 113. See discussion in Chapter 1. 114. Lee Wolosky and Stephan Heifatz, “Regulating terrorism,” Law and Policy in International Business 34, no. 1 (2002): 2. 115. Dennis M. Lormel, “Understanding and disrupting terrorist financing” (IPSA International, October 15, 2007). 116. Parkman and Peeling, Countering Terrorist Finance,5. 117. de Goede, “Money, media and the anti-politics of terrorist finance,” 292. 118. See, for instance, Cassara, Hide and Seek; Roth, Greenberg, and Wille, Staff Report to the Commission. See also Chapter 1 for anecdotes about the wide usage of open-source information even among counter terrorist finance intelligence analysts. 119. Carolyn Nordstrom, “Extrastate globalization of the illicit,” ed. Catherine Lowe Besteman and Hugh Gusterson, Why America’s Top Pundits Are Wrong: Anthropologists Talk Back (Berkley, CA: University of California Press, 2005). 120. Victor Comras, “Al-Qaeda finances and funding to affiliated groups,” Strate- gic Insights (Center for Contemporary Conflict) IV, no. 1 (January 2005).

3 Asking the Right Questions about Terrorist Finance

1. Steven Emerson and Jonathan Levin, “Terrorism ﬁnancing: origination, organization, and prevention: Saudi Arabia, terrorist ﬁnancing and the war on 208 Notes

terror,” Testimony of Steven Emerson with Jonathan Levin Before the United States Senate Committee on Governmental Affairs (Washington DC, July 31, 2003). 2. Horgan and Taylor, “Playing the ‘green card:’ financing the provisional IRA: part 1.” 3. Jeroen Gunning, “Terrorism, charities, and diasporas,” ed. Biersteker and Eckert, Countering the Financing of Terrorism. 4. Nigel Dodd, The Sociology of Money: Economics, Reason & Contemporary Society, 1st ed. (Continuum Intl Pub Group, 1994). See also Geoffrey Ingham, The Nature of Money (Polity, 2004). 5. Partha Dasgupta, Economics: A Very Short Introduction (Oxford University Press, USA, 2007). The use of the concept of “flow” here is meant to empha- size that it is the relationship among the many variables of terrorist financing that is important to knowledge of it, rather than the nature of any particular set of those variables. Although this is essentially analogous to economic sociological approaches (see especially Jens Beckert, “The social order of markets,” Theory and Society 38, no. 3 (1, 2009): 245–269.), for the purposes of this book, the concept of “flow” makes this point more concisely. 6. Nordstrom, Global Outlaws, 207. 7. Greta Krippner, “The elusive market: embeddedness and the paradigm of economic sociology,” Theory and Society 30, no. 6 (2002): 782. See also Beckert, “The social order of markets.” 8. Quoted in Elisabeth Bumiller and Jane Perlez, “After the attacks: the overview; bush and top aides proclaim policy of ‘ending’ states that back terror; local airports shut after an arrest,” The New York Times, September 14, 2001, sec. U.S. 9. Warde, The Price of Fear. 10. Matthew Levitt, “Adding Hizbullah to the EU terrorist list,” Testimony to the Committee on Foreign Affairs, Subcommittee on Europe, United States House of Representatives, June 20, 2007, http://foreignaffairs.house.gov/110/ lev062007.htm (accessed April 20, 2008). 11. Adham Saouli, “Stability under late state formation: the case of Lebanon,” Cambridge Review of International Affairs 19, no. 4 (12, 2006): 701–717. 12. Gulfnews, “Hizbullah’s welfare services ensure grass-roots support,” August 12, 2006. 13. de Goede, “Money, media and the anti-politics of terrorist finance,” 292. 14. Ibid. 15. Duffield, Development, Security and Unending War, 2–3. 16. See especially—but by no means exclusively—the Critical Security Studies debates, such as in Ken Booth, ed., Critical Security Studies and World Politics (Lynne Rienner Publishers Inc, 2004); Keith Krause, Critical Security Studies (University of Minnesota Press, 1997). See also the “New Wars” and related literature, such as Mary Kaldor, New and Old Wars: Organized Violence in a Global Era, 2nd ed. (Stanford University Press, 2007); Duffield, Development, Security and Unending War; Mark Duffield, Global Governance and the New Wars: The Merging of Development and Security (Zed Books Ltd, 2001). 17. See discussion on the “opening up” of terrorism studies to wider perspectives in John Horgan and Michael Boyle, “A case against ‘critical terrorism studies’,” Critical Studies on Terrorism 1, no. 1 (January 1, 2008): 53–55 and more generally in Richard Jackson, Breen Smyth Marie, and Jeroen Gunning, eds., Notes 209

Critical Terrorism Studies: A New Research Agenda (New York: Routledge, 2009). 18. See discussion in Chapter 1. 19. Michel Foucault, Abnormal, trans. G. Burchell (New York: Picador, 2003), 48, quoted in de Goede, “Money, media and the anti-politics of terrorist finance,” 298. 20. Ibid. 21. Duffield, Development, Security and Unending War,5. 22. Michel Foucault, “Right of death and power over life,” ed. Nancy Scheper- Hughes and Philippe I. Bourgois, Violence in War and Peace (Wiley-Blackwell, 2004), 80. 23. Duffield, Development, Security and Unending War,5. 24. Mitchell Dean, Governmentality: Power and Rule in Modern Society (Sage Publications, 1999), 113. 25. Duffield, Development, Security and Unending War,5. 26. For discussion of these approaches, see Ashvaig Gordon, “Terrorism and knowledge growth,” ed. Andrew Silke, Research on Terrorism: Trends, Achieve- ments and Failures, 1st ed. (Routledge, 2003); Jeroen Gunning, “Babies and bathwaters: reflecting on the pitfalls of critical studies on terrorism,” European Political Science 6, no. 3 (2007): 236–243.

4 Understanding Terrorist Finance as Interaction with Value Chains

1. G. Gereffi, J. Humphrey, and T. Sturgeon, “The governance of global value chains,” Review of International Political Economy 12, no. 1 (February 1, 2005): 79. 2. Bruce Kogut, “Designing global strategies: comparative and competitive value-added chains,” Sloan Management Review 26, no. 4 (Summer 1985): 15. 3. Interoperability Clearinghouse, Glossary of Terms, http://www.ichnet.org/ glossary.htm. The term “value chain” arrived into popular usage through Michael E. Porter, Competitive Advantage: Creating and Sustaining Superior Performance, 1st ed. (Free Press, 1998). 4. Which of course can be defined in many ways—profit, long-term value, stock price, and so on. 5. Stuart Levey, “Address of under secretary Stuart Levey,” The American Israel Public Affairs Committee Policy Conference 2005 (U.S. Treasury, May 25, 2005). 6. Al-Shabaab has been officially named or designated as a terrorist organization by at least the governments of the United States, the United Kingdom, and Canada. U.S. Department of State, “Foreign Terrorist Organizations,” August 6, 2010, http://www.state.gov/s/ct/rls/other/des/ 123085.htm; Althia Raj, “Al-Shabaab listed as terrorist group,” Toronto Sun, March 7, 2010, http://www.torontosun.com/news/canada/2010/03/07/ 13145681.html; “Somali group to be banned in UK,” BBC, March 1, 2010, sec. UK, http://news.bbc.co.uk/2/hi/uk_news/8543347.stm. 7. Al-Shabaab has been dubbed by one Somali observer the “conscience” of the ICU, as well as the key driver for both the ICU’s success in defeating the warlords and also its adoption of suicide bombings and other brutal tactics. 210 Notes

Dr. Ali Abdirahman Hirsi, “The enormous debt owed by so many to the UIC,” Wardheer News, March 5, 2007, http://www.wardheernews.com/articles_07/ March_07/05_UIC_Ali_Hirsi.html. 8. Sudarsan Raghavan, “Islamic militant group al-Shabab claims Uganda bombing attacks,” The Washington Post, July 12, 2010, http://www.washington post.com/wp-dyn/content/article/2010/07/12/AR2010071200476.html. 9. Ian Fisher, “Somali business thwarted by too-free enterprise,” The New York Times, August 10, 2000. 10. Peter D. Little, Somalia: Economy Without State (Indiana University Press, 2003): 124. 11. Ibid., 23. 12. Ibid., throughout, but especially 9, 165–166. 13. Ibid., 9, 119. 14. Anna Lindley, “Between ‘dirty money’ and ‘development capital’: Somali money transfer infrastructure under global scrutiny,” African Affairs 108, no. 433 (August 8, 2009): 8. 15. Eric Pardo Sauvagot, Piracy off Somalia and its Challenges to Maritime Security, UNISCI Discussion Papers (UNISCI, January 2009). 16. “Somali pirates: Islamist insurgents demand weapons from hijacked ship,” The Daily Telegraph, October 5, 2008, http://www.telegraph.co.uk/news/ worldnews/africaandindianocean/somalia/3140884/Somali-pirates-Islamist- insurgents-demand-weapons-from-hijacked-ship.html. 17. David Shinn, “Rise of piracy and other maritime insecurity in Somalia,” April 7, 2009, http://www.eastafricaforum.net/2009/04/11/rise-of-piracy- and-other-maritime-insecurity-in-somalia/. Shinn observes that the taxation rate can go up as high as 50 percent if al-Shabaab actually provides financing for a particular pirate operation. 18. Sauvagot, Piracy off Somalia and Its Challenges to Maritime Security. 19. “Denmark: Financing terrorism in Somalia,” Islam in Europe, January 11, 2010, http://islamineurope.blogspot.com/2010/01/denmark-financing- terrorism-in-somalia.html. 20. Nina Berglund, “Three charged with financing terrorist activity,” Aftenposten (Norway, February 28, 2008), http://www.aftenposten.no/english/local/ article2282983.ece. “Denmark: Financing terrorism in Somalia.” Abdisaid M. Ali, “The Al-Shabaab Al-Mujahidiin—a profile of the first Somali terrorist organisation,” in The Joint Kenya-Uganda Border Security and Manage- ment Workshop (Jinja, Uganda: IGAD Capacity Building Programme against Terrorism (ICPAT), 2008). 21. Abdulkadir Osman Farah, “Diaspora involvement in the development of Somalia,” Development, Innovation and International Political Economy Research (DIIPER) Research Series, no. 13 (2009), http://vbn.aau.dk/files/16987635/ diiper_wp_13.pdf. 22. Ibid. 23. For a good introduction to khat and its role in the societies in which it is consumed, see Neil Carrier, Kenyan Khat: The Social Life of a Stimulant (Brill, 2007). 24. Kaspar Krogh, “Hver dag smugles et ton af planten Khat ind i Danmark,” Berlingske Tidende, February 6, 2010, http://www.berlingske.dk/danmark/ hver-dag-smugles-et-ton-af-planten-khat-ind-i-danmark. Notes 211

25. Ibid. 26. Ibid. 27. “Nederlandse qat-smokkel financiert terreurorganisatie Al-Shabab,” Dit is de Dag (Netherlands: Radio 1 Live, June 28, 2010), http://www.eo.nl/ programma/ditisdedag/2009-2010/page/Nederlandse_qat_smokkel_financiert_ terreurorganisatie_Al_Shabab/articles/article.esp?article=11726790. 28. Ibid. 29. Carrier, Kenyan Khat. 30. Anna Lindley, “Somalia country study,” in Informal Remittance Systems in Africa, Caribbean and Pacific (ACP) Countries (Oxford: ESRC Centre on Migration, Policy and Society (COMPAS), University of Oxford, 2005). 31. Thank you to Dr. Neil Carrier for this insight. 32. “Nederlandse qat-smokkel financiert terreurorganisatie Al-Shabab.” See, for example, Cindy Horst, “Xawilaad: the importance of overseas connections in the livelihoods of Somali refugees in the Dadaab refugee camps of Kenya,” University of Amsterdam, Amsterdam Research Institute for Global Issues and Development Studies (2003); Anna Lindley, “Somalia country study,” in Informal Remittance Systems in Africa, Caribbean and Pacific (ACP) Coun- tries (Oxford: ESRC Centre on Migration, Policy and Society (COMPAS), University of Oxford, n.d.). 33. See, for instance, de Goede, “Hawala discourses and the war on terrorist finance”; Passas, “Fighting terror with error: the counter-productive regulation of informal value transfers.” 34. Lindley, “Somalia country study.” 35. Farah, “Diaspora involvement in the development of Somalia.” Lindley, “Somalia country study.” 36. Lindley, “Between ’dirty money’ and ’development capital’,” 20. 37. Ibid. 38. Ibid. 39. Ibid. 40. Hirsi, “The enormous debt owed by so many to the UIC.” 41. Ibid. 42. Lindley, “Between ‘dirty money’ and ‘development capital’.” 43. Lindley, “Somalia country study.” 44. Ibid. 45. “Kismayo islamists shut down money-wiring firms,” Garowe Online, March 10, 2009, http://allafrica.com/stories/printable/200903110006. html. 46. “Somali phone cash transfer banned,” BBC, October 18, 2010, sec. Africa, http://www.bbc.co.uk/news/mobile/world-africa-11566247. 47. Safia Sulaiman, “Empowering ‘soft’ Taliban over ‘hard’ Taliban: Pakistan’s counter-terrorism strategy,” Terrorism Monitor (Jamestown Foundation) 6, no. 15, July 25, 2008. 48. US Department of State, “Designations of Tehrik-e-Taliban Pakistan and two senior leaders,” Press Release, September 1, 2010, http://www.state.gov/r/pa/ prs/ps/2010/09/146545.htm. 49. Former NATO country government intelligence official currently resident in Pakistan (name withheld), interview by the author (Washington DC, October 2009). 212 Notes

50. Ravi Somaiya, “Guerilla Trucks,” Newsweek, October 14, 2010, http://www. newsweek.com/2010/10/14/why-rebel-groups-love-the-toyota-hilux.print. html. And Former NATO country government intelligence official currently resident in Pakistan (name withheld), interview by the author (Washington DC, October 2009). 51. “Vehicular equivalent of the AK-47” by Andrew Exum, and “a modern version of light cavalry” by David Kilcullen, both quoted in Ibid. 52. Author interviews with former NATO country government intelligence official currently resident in Pakistan (name withheld—locations withheld, October 2009 to April 2010). 53. John F. Burns, “Trucks of the Taliban: durable, not discreet,” The New York Times, November 23, 2001, sec. Autos, http://www.nytimes.com/2001/11/ 23/automobiles/autos-on-friday-international-trucks-of-the-taliban-durable- not-discreet.html?scp=1&sq=mullah%20omar%20car%20hilux&st=cse. 54. Author interviews with former NATO country government intelligence official currently resident in Pakistan (name withheld—locations withheld, October 2009 to April 2010). 55. See Chapter 1 discussion of the Afghan Transit Trade. 56. Somaiya, “Guerilla trucks” and author interviews with former NATO country government intelligence official currently resident in Pakistan (name withheld—locations withheld, October 2009 to April 2010). Although reli- able estimate was available at the time of writing, to illustrate the likely size of the trade in Chinese-made counterfeit vehicles, Ford Motor Company esti- mates it loses $2 billion per year in lost sales from such fakes, and the global trade in counterfeited car parts, most of which are made in China, is estimated to be worth some $16 billion: Jay Hilotin, “Counterfeit car parts sold in UAE,” Gulfnews, October 14, 2010, http://gulfnews.com/news/gulf/uae/ counterfeit-car-parts-sold-in-uae-1.696199. 57. Sources for prices: author interviews with former NATO country government intelligence official currently resident in Pakistan (name withheld—locations withheld, October 2009 to April 2010). 58. Somaiya, “Guerilla trucks”; author interviews with former NATO country government intelligence official currently resident in Pakistan (name withheld—locations withheld, October 2009 to April 2010). 59. Amartya Sen, Rationality and Freedom (London: Harvard University Press, 2004), 4. 60. Ibid. 61. Ash Amin and Ronen Palan, “Towards a non-rationalist international political economy,” Review of International Political Economy 8, no. 4 (2001): 561. 62. Sen, Rationality and Freedom,6. 63. See Ibid., 7, footnote 4. 64. Ibid., 4. 65. Ibid., 48. 66. Sen, Rationality and Freedom. In context of IR discourse overall, this is roughly analogous to constructivism in which structures matter, but they can change by the choices of agents; and in particular to the poststructural international political economy (IPE) and economic sociology approaches that discuss the social, ideational, and discursive foundations of how value (such as money) and its exchange (such as “finance”) is perceived and acted upon. Notes 213

67. Victor Comras, “Al-Qaeda finances and funding to affiliated groups,” Strategic Insights 4, no. 1 (January 2005). 68. Levitt, Hamas. 69. See discussion in Jeroen Gunning, “Terrorism, charities, and diasporas: contrasting the fundraising practices of Hamas and al Qaeda among Muslims in Europe,” ed. Thomas J. Biersteker and Sue E. Eckert, Countering the Financing of Terrorism, 1st ed. (Routledge, 2007), 99–104. 70. Ibid. 71. Carolyn Nordstrom, “Extrastate globalization of the illicit,” ed. Catherine Besteman and Hugh Gusterson, Why America’s Top Pundits Are Wrong: Anthropologists Talk Back 1st ed. (University of California Press, 2005), 151. 72. Gereffi, Humphrey and Sturgeon, “The governance of global value chains,” 78–104. 73. Ibid., 85. 74. Sabrina Tavernise, “Organized crime in Pakistan feeds Taliban,” The New York Times, August 29, 2009, sec. International/Asia Pacific, http://www.nytimes. com/2009/08/29/world/asia/29karachi.html?_r=1&pagewanted=print. 75. Ibid. 76. Ibid. 77. Anne-Kathrin Glatz and Robert Muggah, “The other side of the coin: demand,” in Small Arms Survey 2006: Unfinished Business (Geneva: Small Arms Survey, Graduate Institute of International Studies, 2006). 78. Peters, Seeds of Terror, 67–101. 79. Ibid., 102–144. 80. Ibid. 81. Tamara Makarenko, “The crime-terror continuum: tracing the interplay between transnational organised crime and terrorism,” Global Crime 6, no. 1 (February 1, 2004): 129–145. 82. Phil Williams, “Terrorist financing and organized crime: nexus, appropriation, or transformation?,” ed. Thomas Biersteker and Sue Eckert, Countering the Financing of Terrorism (London, New York: Routledge, 2008). 83. Peters, Seeds of Terror. 84. Roth, Greenberg, and Wille, Staff Report to the Commission: Monograph on Terrorist Financing.

5 Understanding Terrorist Finance as a Continuum of Material Support

1. Craig Whitlock, “Afghan insurgents’ diverse funding sources pose challenges,” The Washington Post, September 27, 2009, http://www.washington post.com/wp-dyn/content/article/2009/09/26/AR2009092602707.html. 2. “Al-Qaeda,” Terrorist Group Proﬁles, Web site of the US Naval Postgraduate School, http://www.nps.edu/Library/Research/SubjectGuides/SpecialTopics/ TerroristProﬁle/Current/AlQaida.html (accessed October 23, 2010). 3. For a more complete list, see the United Nations “Consolidated List of Enti- ties and other groups and undertakings associated with Al-Qaeda,” available at http://www.un.org/sc/committees/1267/consolidatedlist.htm#alqaedaent (accessed October 23, 2010). 214 Notes

4. For a discussion of the utopian and global revolutionary aspects of al-Qaeda, see especially, John Gray, Al Qaeda and What It Means to Be Modern (New Press, The, 2003). 5. William Maclean, “Al-Qaida’s money trouble,” Reuters, June 15, 2009, http:// www.canada.com/life/QAIDA+MONEY+TROUBLE/1698175/story.html. 6. Abdul Hameed Bakier, “Jihadis debate methods of financing the Mujahideen network in Iraq,” Jamestown Foundation Terrorism Monitor 7, no. 32 (October 30, 2009). 7. Jordan Steffen, “Experts say some Jihadist websites should be shut down,” Los Angeles Times, September 19, 2010, http://www.latimes.com/sns-jihad- websites,0,6784408.story. 8. Ibid. 9. Paraphrase of Bakier, “Jihadis debate methods of financing the Mujahideen network in Iraq.” 10. Ibid. 11. Ibid. 12. Daniel Byman, Deadly Connections: States that Sponsor Terrorism (Cambridge University Press, 2005). 13. Bakier, “Jihadis debate methods of financing the Mujahideen network in Iraq.” 14. Omid Marzban, “Gulbuddin Hekmatyar: from holy warrior to wanted terrorist,” The Jamestown Foundation, September 2006. 15. “Designation of Gulbuddin Hekmatyar as a terrorist,” Press Statement (U.S. Department of State, February 19, 2003). 16. Peters, Seeds of Terror, 127. 17. Ibid., 128. 18. Candace Rondeaux, “Afghan rebel positioned for key role,” The Washington Post, November 5, 2008. 19. Ibid. 20. Docket No. 08-1498. Argued February 23, 2010. Decided June 21, 2010. 21. Oral arguments for Holder et al. v Humanitarian Law Project et al. February 23, 2010. 22. Humanitarian Law Project Web site: http://hlp.home.igc.org/ (accessed October 22, 2010). 23. Oral arguments for Holder et al. v Humanitarian Law Project et al., Docket No. 08-1498, February 23, 2010. 24. Quoted in Constitution Project, “Constitution project dismayed by supreme court’s rejection of constitutional challenge to provisions of material support laws,” Press Release, June 21, 2010. 25. Gunning, “Terrorism, charities, and diasporas: contrasting the fundraising practices of Hamas and al Qaeda among Muslims in Europe.” 26. Ibid. 27. James Adams, The Financing of Terror (Simon & Schuster, 1986), 131, 137. Adams cites the PIRA’s annual budget for the “early 1970s” as £4 million, which, using the January 1972 dollar/sterling exchange rate of 2.57 equates to $10.28 million. 28. Comprised of both Irish citizens living in America, and American citizens of Irish descent. See Adams, The Financing of Terror, 137; A Mumford, Notes 215

“Intelligence wars: Ireland and Afghanistan, the American experience,” Civil Wars 7, no. 4 (January 1, 2005): 382. 29. Adrian Guelke, “The United States, Irish Americans and the Northern Ireland peace process,” International Affairs (Royal Institute of International Affairs 1944–) (1996): 524. 30. Ibid. 31. The defendants were NORAID founder Michael Flannery and four others. They did not deny smuggling arms to the PIRA, but they did claim that the CIA paid them to do it. See Adams, The Financing of Terror, 137–142; Mumford, “Intelligence wars: Ireland and Afghanistan, the American experience,” 382; Guelke, “The United States, Irish Americans and the Northern Ireland peace process,” 523–525. 32. “Foreign Agents Registration Unit (FARA),” US Department of Justice Web site, n.d., http://www.fara.gov/. 33. Quoted in Warren Richey, “The Noraid connection,” Christian Science Monitor (international edition), January 19–25, 1985. Guelke, “The United States, Irish Americans and the Northern Ireland peace process.” 34. Adams, The Financing of Terror; Guelke, “The United States, Irish Americans and the Northern Ireland peace process.” 35. Ed. Moloney, “Rep. King and the IRA: the end of an extraordinary affair?,” New York Sun, June 22, 2005, http://www.nysun.com/national/rep- king-and-the-ira-the-end-of-an-extraordinary/15853/#. It must be noted that Rep. King, along with many other former Irish-American supporters of NORAID, Sinn Fein, and the PIRA, have publicly and repeatedly disavowed Irish Republican terrorism in the wake of the September 11, 2001 terrorist attacks on the United States. 36. Internment refers to Operation Demetrius, a policy in which citizens of Northern Ireland suspected of being paramilitary members could be impris- oned without trial for up to 10 days. Ed. Moloney, A Secret History of the IRA (W. W. Norton & Company, 2003), 107, 209. 37. Guelke, “The United States, Irish Americans and the Northern Ireland peace process.” 38. Adams, The Financing of Terror, 137. 39. Jason Burke, Al-Qaeda: The True Story of Radical Islam (Penguin Books Ltd, 2004). 40. Especially the literature on “radicalization” 41. See, for example, Paul Collier and Anke Hoefﬂer, “Greed and grievance in Civil War,” Oxford Economic Papers 56 (2004): 563–595 who argue that socio- economic factors play a greater role in determining participation in political violence than political factors; Alan Kreuger and Jitka Maleckova, “Educa- tion, poverty, political violence and terrorism: is there a causal connection?,” Journal of Economic Perspectives 17, no. 4 (2003): 119–144, who argue that there is no generalizable causal connection between economic deprivation and participation in terrorism. 42. Nathan Vardi, “Is al-Qaeda bankrupt?,” Forbes, March 1, 2010, http://www. forbes.com/forbes/2010/0301/terrorism-funds-ﬁnance-osama-al-qaeda-bank rupt.html?boxes=Homepagelighttop. 43. F. Scott Fitzgerald, The Crack-Up (New Directions Publishing Corporation, 1993), 69. 216 Notes

6 Terrorist Finance and International Relations

1. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 2. Robert Cox, “Towards a post-hegemonic conceptualization of world order: reflections on the relevancy of Ibn Khaldun,” ed. J. Rosenau and E.O. Czempiel, Governance Without Government: Order and Change in World Politics (Princeton, NJ: Princeton University Press, 1992), 132. 3. Pierre Bourdieu, Outline of a Theory of Practice, trans. Richard Nice (Cambridge: Cambridge University Press, 1977), 168. 4. Horgan and Boyle, “A case against ‘critical terrorism studies’.” 5. For example Paul Wilkinson, Terrorism and the Liberal State, 2nd ed. (NYU Press, 1986). 6. Richard Jackson, Writing the War on Terrorism: Language, Politics and Counter- Terrorism (Manchester University Press, 2005). 7. Christopher Cramer, Civil War Is Not a Stupid Thing: Accounting for Violence in Developing Countries (C Hurst & Co Publishers Ltd, 2006). 8. Duffield, Development, Security and Unending War. 9. Anthony F. Lang, Punishment, Justice and International Relations: Ethics and Order After the Cold War, 1st ed. (Routledge, 2008). 10. This was Adams, The Financing of Terror. 11. Michael Levi, “Combating the financing of terrorism: a history and assessment of the control of ‘threat finance’,” British Journal of Criminology (May 17, 2010), http://bjc.oxfordjournals.org/cgi/content/ abstract/azq025v1. 12. Robert Cox, “Social forces, states, and world orders: beyond international relations theory,” Millennium—Journal of International Studies 10, no. 2 (1981): 126–155. 13. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 14. For example, Napoleoni, “The new economy of terror.” 15. See, for example, Ehrenfeld, Funding Evil, Updated; Steven Emerson, American Jihad: The Terrorists Living Among Us (Free Press, 2003). 16. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 17. Juan Zarate, quoted in Ibid. 18. See Warde, The Price of Fear. 19. de Goede, “Money, media and the anti-politics of terrorist finance,” 293. 20. See discussion in Chapters 1 and 2. 21. Horgan and Boyle, “A case against ’critical terrorism studies’,” 62. 22. Reuter and Truman, Chasing Dirty Money. 23. Peter Sproat, “The social impact of counter terrorist finance policies in the UK,” Crime, Law and Social Change 44, no. 4 (December 29, 2005): 441–464. 24. Thomas J. Bierstecker and Sue E. Eckert, “Taking stock of efforts to counter the financing of terrorism and recommendations for the way forward,” ed. Bierstecker and Eckert, Countering the Financing of Terrorism. 25. Cassara, Hide and Seek. 26. Passas, “Fighting terror with error: the counter-productive regulation of informal value transfers.” Notes 217

27. Gunning, “Terrorism, charities, and diasporas: contrasting the fundraising practices of Hamas and al Qaeda among Muslims in Europe.” 28. Marieke de Goede, “Financial regulation and the war on terror in global finance in the new century,” ed. L. Assassi, A. Nesvetailova, and D. Wigan, Global Finance in the New Century: Beyond Deregulation (London: Palgrave Macmillan, 2006). 29. Warde, The Price of Fear. 30. Naylor, Satanic Purses. 31. These are: Amicelle, A. (2008) “Migrant remittances marginalized: an unin- tended consequence of the fight against terrorist financing?” Paper presented at the annual meeting of the ISA’s 49th Annual Convention, Bridging Mul- tiple Divides, San Francisco, California, March 26, 2008. Biersteker, T. J. and S. Eckert (2008), “Measuring success in the financial war on terror.” Paper presented at the annual meeting of the ISA’s 49th Annual Convention, Bridg- ing Multiple Divides, San Francisco, California, 26 March 2008; Biersteker and Eckert, eds. (2008) Countering the Financing of Terrorism. Alyson Bailes, ed., Business and Security After 11 September 2001: Protecting the Legitimate and Blocking the Illegitimate (Oxford: Oxford University Press); Biersteker, T. J. with P. Romaniuk (2004) “The return of the state? Financial re-regulation in the pursuit of national security after september 11,” ed. John Tirman, Maze of Fear: Security and Migration After 9/11 (New York: The New Press, 2004); Cassara, Hide and Seek; Dulles, V. A., Heng, Y. K. and K. McDonagh “The other war on terror revealed: global govermentality and the financial action task force’s campaign against terrorist financing,” Review of Interna- tional Studies 34 (2008): 553–573; Passas, N. “Setting global CFT standards: a critique and suggestions,” Journal of Money Laundering Control 9, no. 3 (2006): 281–292; Reuter and Truman, Chasing Dirty Money; Vlcek, W. “Devel- opment vs. terrorism: money transfers and EU financial regulations in the UK,” British Journal of Politics and International Relations 10, no. 2 (2008): 286–302; Vlcek, W. “Hitting the right target: EU and security council pursuit of terrorist financing.” Paper presented at the Biennial Conference of the European Union Studies Association, Montreal, Canada, May 17–19, 2007; Vlcek, W. “Along-side global political economy—a rhizome of informal finance.” Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Chicago, Illinois, February 28, 2007; Warde, The Price of Fear; Warde, I., “The war on terror, crime and the shadow economy in the MENA countries,” Mediterranean Politics 12, no. 2 (2007): 233–248. 32. de Goede, “Money, media and the anti-politics of terrorist finance,” 292. 33. Duffield, Development, Security and Unending War, 2–3. 34. For instance, Nordstrom, Global Outlaws. Naím, Illicit or R. Palan, The Offshore World: Sovereign Markets, Virtual Places, and Nomad Millionaires (Cornell University Press, 2006). 35. Marieke de Goede, “Money, media and the anti-politics of terrorist finance,” (August 1, 2008): 289–310. 36. Such as the United States, Great Britain, France, Germany, and Japan. 37. J. C. Sharman, Havens in a Storm: The Struggle for Global Tax Regulation, 1st ed. (Cornell University Press, 2006). 218 Notes

38. Such as Lichtenstein, Aruba, the Cayman Islands, and Nauru. 39. Sharman, Havens in a Storm. 40. Ibid., 145. 41. Ibid. 42. de Goede, “Hawala discourses and the war on terrorist finance.” 43. For a discussion of this, see Robert O’Brien and Marc Williams, Global Polit- ical Economy: Evolution and Dynamics, 2nd ed. (Palgrave Macmillan, 2007), 13–26. 44. This meta-approach echoes the “eclectic” approach outlined in O’Brien and Williams, Global Political Economy. Although presented within a textbook, O’Brien and Williams argue that their “eclectic” perspective “is not a random mix of existing theories” but represents “an explicit argument concerning the key issues and themes in global political economy,” 410–411. 45. Ibid., 418. 46. Ibid., 410. 47. Ibid. 48. Ibid. 49. Roger Tooze, “The missing link: security critical international political economy and community,” ed. Ken Booth, Critical Security Studies and World Politics, 144. 50. Nordstrom, Global Outlaws. 51. In this context, the term “negotiate” means roughly “systematic interaction,” rather than necessarily “talking.” 52. Hans Morgenthau, Politics Among Nations, 7th ed. (McGraw-Hill, 2005), 5. 53. Michael Charles Williams, The Realist Tradition and the Limits of International Relations (Cambridge University Press, 2005), 115. 54. Ibid., 114–115. 55. As quoted in Seán Molloy, The Hidden History of Realism: A Genealogy of Power Politics (Palgrave Macmillan, 2006). 56. Ibid. 57. Williams, The Realist Tradition and the Limits of International Relations. 58. Ibid., 108. 59. Ibid. 60. See Gunning, “Terrorism, charities, and diasporas: contrasting the fundraising practices of Hamas and al Qaeda among Muslims in Europe.” 61. This is reflected in the diverse and ever-changing nature of the political spaces in which terrorist financing occurs. 62. Williams, The Realist Tradition and the Limits of International Relations, 118. 63. Ibid., 118–121. 64. Ibid., 121. 65. Morgenthau, Politics Among Nations, 183–185, especially. 66. Williams, The Realist Tradition and the Limits of International Relations, 121. 67. Ibid. See also J. Hobson and L. Seabrooke, “Reimagining Weber: constructing international society and the social balance of power,” European Journal of International Relations 7, no. 2 (June 1, 2001): 239–274. 68. Williams, The Realist Tradition and the Limits of International Relations, 121. 69. For a discussion of this alienation process using the balance of power, see: Ibid. 70. Morgenthau, Politics Among Nations, 118. Notes 219

71. Williams, The Realist Tradition and the Limits of International Relations, 146. 72. Ibid., 119.

Conclusion

1. Frederich Nietzsche, Beyond Good and Evil, Chapter VII. Emphasis added. 2. Biersteker and Eckert, eds., Countering the Financing of Terrorism. Bibliography

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abbaan, 119 Amal, 122 Abkhazia, 5, 193 n26, 196 n85 Amsterdam, Netherlands, 120 Abu-Amer, 8 analysis of terrorist ﬁnance, 3, 4, Abu Nidal Organization, 48 16–17, 19–20, 22–3, 26–7, 29, Abu Sayyaf Group, 48, 144 34–5, 38–9, 41–2, 53–4, 60, 62–4, Afghanistan, 4, 7, 8, 13, 28, 46–9, 72–4, 80–3, 90, 92–115, 123, 52–3, 59, 77, 123–4, 136, 144, 127–30, 136–40, 143, 153–9, 146–7, 156, 195 n60 161–2, 166–7, 171, 173–7, 180–3, Afghan Transit Trade Agreement 189–91, 200 n154, 205 n62 (ATTA), 46–7, 124 bias in, 16, 25, 60, 99, 109, 180 African National Congress (ANC), 85 conducting systematic, 1–4, 17, 23, agency and choice, 15–16, 22–3, 41–2, 39, 41, 57, 73–4, 91, 93, 95–7, 58, 60, 64, 70, 78, 88, 99, 110, 99–100, 103, 114, 123, 127, 128–30, 138, 141, 154, 156, 130–1, 138–9, 141, 143, 154–6, 173–4, 179–81, 212 n66 158, 162, 167, 169, 171, 174–5, Al-Ahdal, Mahmoud Hamdi, 7 177–8, 183, 188, 190 Al-Aqsa Martyrs’ Brigade (al-Aqsa), 48 drawing lines in, 19, 31, 38, 46, 57, Al-Ayyri, Yousef, 7 69, 80, 122, 167 Al Barakaat, 87, 122 gauging meaning and signiﬁcance Aldamov, Khizri, 14, 18 when conducting, 22–3, 25–6, Algeria, 48, 144 39, 57, 61, 64, 108, 123, 129, Al Haramein Islamic Foundation 177, 190 (AHIF), 10–11, 18–19, 27, 115 interviews and, 7, 11, 39–41, 113, Al-Islam al-Masri, Saif, 8, 11, 18 130 Al-Qa’ida, 3, 6–9, 11, 18–19, 21, 28, limited relevance of legality to, 78, 30–1, 45, 48, 52–3, 56, 59–60, 80, 95 62–3, 65, 68–9, 71, 83, 87, 105, methodological issues relating to, 3, 118, 130–1, 138–9, 142, 144–7, 4, 39, 41, 58, 89, 95, 105, 128, 149–50, 155–6, 180, 195 n55, 200 161, 172–3, 175–6, 178, 185, n150, 205 n57 189 al-Qa’ida in the Arabian Peninsula nuance and, 16, 20, 22, 27, 57, 59, (AQAP), 48, 120, 144 130–1, 136, 140–2 Al-Qa’ida in Iraq (AQI), 48, 68, 144–5, perspective and, 16, 20–1, 23–4, 200 n150 28, 36, 39, 44, 57, 68, 71, 80–2, al-Qa’ida in the Islamic Maghreb 85, 102, 105, 119, 127, 143, (AQIM), 48, 59, 144 152, 156, 159, 164, 166, 172, Al-Serif, Abu Omar Mohammed, 11, 185 18 as political project, 27, 37, 42, 82 Al-Shabaab (Harakat al-Shabaab primary source evidence and, 136 Mujahideen), 48, 87, 112, 117–23, a priori judgments and, 20, 22–3, 209 n7, 210 n17 25, 27, 39, 74, 81, 128, 130, 166 Al-Shahri, Saeed, 146 purpose of, 99, 105–6, 111

230 Index 231

secondary source evidence and, 136 Canada, 124–5 setting agendas for, 6, 38, 60–1, 180 flag of, 124–5 analytic devices and tools, 179, 183, capital, 26, 54, 74, 88, 100, 118 185 Carter Center, the, 149 Angola, 5, 53 Carter, Jimmy, 149 animal hides, 45 cash, 8, 10–13, 24, 32, 45, 47, 54, 66, Ansar al-Islam, 48 75, 115, 117, 119–20, 122, 125, anthropology (academic discipline), 127, 136, 142, 156 37, 58, 109, 159 cash couriers, 24, 32 anti-politics, 107–8 Casino Royale (film), 55 Arab Bank, 60, 62 Caucasian-American Chamber of Arafat, Yasser, 65 Commerce, 9 Argun, Chechnya, 9 Central Bank of Afghanistan, 52–3 Asbat al-Ansar, 48 Central Intelligence Agency (CIA), 35, asset freezes, 31, 65, 87, 173 83, 133, 144 asset seizures, 28, 31–2, 44, 65, 198 charity and charities, 5, 10–11, 13, n130 18–19, 26, 32, 56, 61, 64, 77, 80, Aum Shinrikyo, 48 90, 94, 104, 119, 130, 151, 156, Azerbaijan, 10 168, 176, 186, 190 chat rooms, 144 Badghis, Afghanistan, 46 Chechen House, 9 Bajaur, Afghanistan, 147 Chechens, 6, 8–9, 14 Baku, Azerbaijan, 10 Chechen separatists, 3, 14, 18, 23, 69, Bangladesh, 49 116, 131 bank accounts, 10, 13, 24, 60, 62, 65, Chechnya, 4–6, 8–11, 14, 16, 18, 21, 117, 139, 156 58, 115–16 bank deposits, 45 Chicago, IL, 11 Bank of Georgia, 10 China, 124, 144 Bannu, Pakistan, 125–6 Christianity and Christians, 4, 102–3, barter, 13, 24, 46–7, 119 154 Basque Fatherland and Liberty (ETA), clothing, 5, 26, 47, 118, 131 48 cocaine, 59, 120 Bayt al-Mal, 57 West African trafficking route, 59 Belfast, 72, 152 Cohen, David, 44, 52–3 Benevolence International Colombia, 50–1 Foundation (BIF), 11, 18–19, 115, commodities, 45–7, 66, 68, 118, 132 196 n78, 197 n87 Communist Party of the Beslan, Russian Federation, 6 Philippines/New People’s Army Bin Laden, Osama, 18, 53, 56, 59, 64, (CPP/NPA), 61 73, 142, 147 Consolidated List, see 1267 List bio-politics, 108 (United Nations) black markets, 5, 24, 53, 76 construction supplies, 47 blood feuds, 15 consumerism, 184 boeviks, 5, 8–9, 11–15, 23 Continuity Irish Republican Army Bond, James, 55 (CIRA), 62 bribery, 6, 15, 24, 44, 58, 124, 126 contractors, 28 broker-dealers, 32 Copenhagen, 119–20 Bush, George. W, 30 corruption, 12, 15, 30, 36, 40, 85, 160, administration of, 148 191, 193 n25 232 Index counterfeiting, 8, 24 financial intelligence, 25, 32, 34, 73, Counter Terrorist Financing (CTF) 83–4, 98–9 Regime, 30, 32–3, 35–7, 43–5, Financial War on Terrorism, 1, 30–2, 47–8, 50–3, 73, 82, 126, 128, 36, 44, 82–3, 88, 164, 169, 185 161, 163 flow, 9, 44–5, 74, 92, 97, 100–1, estimated actual relevance to 114–17, 131, 134, 156, 163 Foreign Terrorist Organizations concept in economics of, 111, 128 of the, 48–51 Foreign Agents Registration Act crime, 1, 12–13, 17, 24, 34–5, 40, 46, (FARA), 151 74–7, 79, 86, 113, 117, 133, 136, foreign fighters, 6, 14 156, 167 Foucault, Michel, 107–8 crime-terror nexus, 136, 167 Foundation for Chechnya (FfC), 10 criminology (academic field), 37, 160, France, 6, 48, 50 162–3 fraud, 30, 36, 160 freedom, concept of, 10, 19, 29, 38, Dahabshiil, 122 110, 129–30, 134, 149, 177, 179, Defense, US Department of, 32, 34–5 182, 191 Deobandism, 150 front businesses, 31, 80, 116–17, 133 development aid, 46 fuel, 47 Diakondy, Afghanistan, 46 fundraising, 7, 9, 24, 28, 58, 70, 116, Dir, Afghanistan, 147 119, 121, 145–6, 151–2 documentation, 21, 124–5 fungibility ratio, 71 donations, 2, 5, 10, 24, 61, 71, 87, 116, 119, 122, 131, 144–5, 147, Gama’a al-Islamiyya (Islamic Group), 150–1, 156, 188 49 drug trafficking organizations, 136–7 Gelayev, Ruslan, 8 Dubai, UAE, 62, 118, 124 general electric, 62, 114, 138 Duisi, Georgia, 6 Georgia (country), 3–6, 8–12, 14, 16, 18, 21, 40–1 Egypt, 49 Georgian Relief Association, see Madli electricity, 46 Germany, 49 electronics, 47, 118 globalization, 37, 74, 76, 92, 161, 163, Enlightenment, the, 153, 191 173 Ethiopia, 118–19 Greece, 51 exports, 136 Gross Domestic Product (GDP), 5, 100 extra-legal, the, 3, 37, 39, 55, 78–80, Groznyy, Chechnya, 9 92, 94, 100, 118, 132, 135, 170, Guinea-Bissau, 59 189 Hajj, the, 146 Facebook, 144 HAMAS (Islamic Resistance Farah, Afghanistan, 46 Movement), 49, 56, 60, 62–3, FATF Special Recommendations on 70–1, 81, 114–15, 130–1, 148–50, Terrorist Financing, 87, 206 n78 154, 180 fava beans, 45 Handicraft containers, 8 Federal Bureau of Investigation (FBI), Harakat ul-Jihad-i-Islami/Bangladesh 34, 91, 105 (HUJI-B), 49 Federally Administered Tribal Areas Harakat-ul Jihad Islami (HUJI), 49 (FATA), Pakistan, 123 Harakat ul-Mujahidin (HUM), 49 financial inclusion / exclusion, 48–51 Harrison, George, 152 Index 233

Hawala, 52, 76, 113, 117, 121, 166–7 Irish Americans, 94, 150–2 Heathrow Airport (London), 120 Irish Northern Aid Committee Hekmatyar, Gulbuddin, 146–7 (NORAID), 151–2 Helmand, Afghanistan, 46 Irish Republicanism, 151 heroin, 8, 12–13, 18, 22, 24, 46, 120, Islamic Courts Union (ICU), 118 136, 147 Islamic Jihad Union (IJU), 49 Central Asian trafficking route, 8 Islamic Movement of Uzbekistan history (academic discipline), 159 (IMU), 49 Hizbullah (Party of God), 49, 57–8, Islam and Muslims, 4, 6–11, 18, 48, 60, 68–9, 71, 102–5, 148–50, 69, 102, 122, 133, 144, 146, 150, 180 154 Holder v. Humanitarian Law Project, Israel, 49, 103, 114, 150 148–9 Homeland Security, US Department Jaber, 8 of, 35 Jaish-e-Mohammed (JEM) (Army of hospitality, 4–5, 15, 22, 24, 61, 116, Mohammed), 62 130 Jamaat-ud-Dawa, 148 humanitarian aid, 7, 11, 13–14, 21–2, Japan, 48 24, 68 Jemaah Islamiya organization (JI), 49, hunger-strikers, 152 144 jewelers, 32 Ibrahim, Dawood, 156 Jihad, 6–7, 10, 21, 49–50, 62, 116, 130, Icon (film), 9 145, 148, 176, 184 illicit activity, 2, 22, 33, 37, 45, 52, 59, Jihad al-Binaa, 148 64, 73–82, 92, 94–5, 119, 132, Jihadist, 3, 12, 19, 21, 115, 144–5, 152 147, 170, 189 Jordan, 62, 145 imports, 47, 124 Justice, US Department of, 34 Indonesia, 49, 63, 144 Informal Value Transfer Systems, 76, Kagan, Elena, 148 121, 135 Kahane Chai (Kach), 49 Ingush people, 5 Kajaki, Afghanistan, 46 institutions, 4, 31, 33, 40, 51–2, 55, Kajaki hydropower plant, 46 64, 100–1, 124, 132, 135–6, 142, Kampala, Uganda, 118 168, 173, 176 Kandahar, Afghanistan, 46 insurance companies, 32 Kant, Immanuel, 179 intent, 19, 21, 29, 60–2, 64, 86, 130, Karachi, Pakistan, 133–4 161, 174, 180 Kashmir, 77 International Monetary Fund, 2, 32, Kazakhstan, 49 73 Kegoshvili, Akaki, 5, 18 International Relations (academic Kenchadze, Levan, 14, 18, 20 discipline), 36–7, 85, 99, 101, 128, Kenya, 63, 82, 118–20 159–65, 167–9, 171–3, 175–7, Khat, 120–1 179, 181, 183, 185–7 Khattab, 8 International security studies Khevsureti, Georgia, 15 (academic field), 37, 161, 163–4 Khevsur people, 4, 15, 18, 22, 61, Internment Policy (UK), 152 130 Iran, 8, 46, 49, 58, 103–4 Khyber-Pakhtunkhwa Province, Iraq, 8, 35, 48, 50, 68, 144–5 Pakistan, 123–4, 126 Ireland, 49, 51, 70, 151–2, 154 Kidnap and Ransom, 9, 13, 22, 24, 133 234 Index

King, Peter, 152 markets and the market, 5, 12, 24, 66, Kismaayo, Somalia, 118, 123 68, 74, 76, 79, 101, 108, 113, 117, Kist people, 4–6, 9, 13, 15, 18, 116 124, 127–8, 131–2, 134–7, 147, Kleptocracy, 76 162, 170 Know Your Customer (KYC), 76, 137 Marxism, 172 Kongra-Gel (KGK, formerly Kurdistan material support of terrorist actors Workers’ Party, PKK, KADEK), 50, as an act of charity, 130 148 as an act of politics, 142–3 Krongard, Busy, 84 as an act of war, 142–3 Kunar, Afghanistan, 147 continuum of, 141–3, 145–7, Kurdistan Workers Party, see 149–51, 153, 155–7, 173, 190 Kongra-Gel (KGK, formerly online, 144 Kurdistan Workers’ Party, PKK, provision of legal advice as, 148 KADEK) US law and, 29, 148 Kuwait, 6, 124 Mauritius, 5 Kyrgyzstan, 49 medicine, 5, 12, 21, 54, 77 methodology, 3, 4, 39, 41, 58, 89, 95, Lashkar-e-Tayyiba (LeT) (Army of the 128, 161, 172–3, 175–6, 178, 185, Righteous), 50, 77, 148 189, 205 Lashkar-i-Jhangvi, 50 middlemen, 66, 102, 156 law and legality, 4, 6, 15, 18, 21, mobile banking, 123 29, 31, 33–5, 37, 68, 77–80, modernity, 184 86, 89, 93–5, 99, 105, 116, Mogadishu, 118–19, 122 118–19, 122, 126, 132, 135, 139, money, 2, 6–10, 15, 21, 25–8, 30–2, 141, 148–9, 160, 163, 185, 190–1 34, 36, 43–7, 51, 54–7, 59, 61–3, Lazashvili, Kornel, 5, 18 65–6, 70, 73–6, 78–9, 81–3, 85–8, Lebanon, 8, 48–51, 69, 102–3, 150 90, 95, 99–100, 104, 106, 108, 2006 Lebanon-Israel War, 103 113, 116–17, 119–21, 123, 125–7, Le Chiffre, 55 130, 132–4, 142, 144–6, 151, legitimacy, 80–1, 102, 125, 152, 181–2 155–7, 160, 165, 167, 169–70, 190 levels of analysis, 4, 16 following the, 25–6 liberal problematic of security, 90, as lifeblood of terrorism, 31, 36, 44, 106–9, 164, 169–71 65, 160 Liberation Tigers of Tamil Eelam, as not lying, 25–6 (LTTE), 63 money laundering, 2, 30, 34, 36, 47, Libya, 50, 144 73–4, 76, 79, 82, 85–6, 113, 160, Libyan Islamic Fighting Group, 165, 170 (LIFG), 63, 159 money service businesses, 32 1267 List (United Nations), 18 Morgenthau, Hans, 178–9, 181, 183–4 LogoVAZ, 9 Moroccan Islamic Combatant Group Lower Jubba, Somalia, 118, 122 (GICM), 50 Morocco, 50 MADLEE, see Madli morphine base, 8 Madli, 11, 18 Moscow, Russia, 6, 9, 13 maﬁas, 9, 73, 133 motivations for being involved in Mali, 48 terrorist ﬁnance, 12, 15, 20–1, 23, Malmo, Sweden, 119–20 27, 41, 61–2, 80, 98, 100–1, 116, Mandela, Nelson, 85 121, 126, 128, 134 Margoshvili, Vepkhia, 15 Mountbatten, Lord, 152 Index 235

Mujahedin-e-Khalq Organization PFLP-General Command (PFLP-GC), (MEK), 50 51 Musa Qala, Afghanistan, 46 Philippines, 48, 144 Muslim Brotherhood, the, 8 piracy, sea, 118–19, 121, 191 Muslim Protection Organization, 10, Political economy (academic field), 37, 18 101, 159–60, 162–3, 172–7 poppy, 46, 136 National Liberation Army (ELN), 50 Popular Front for the Liberation of Netherlands, the, 120 Palestine (PFLP), 51 Nietzsche, Frederich, 188 Powell, Colin, 30 9/11 Commission Report, 86 power, 15, 38, 41, 44, 46, 76–9, 84, 89, 9M111 Fagot anti-tank missile, 5, 193 92–3, 101, 107–9, 113–14, 116, n32 118, 131–6, 138, 140, 154–5, NORAID, see Irish Northern Aid 159–60, 162–3, 167, 171–2, Committee (NORAID) 176–8, 180–4, 186 North Atlantic Treaty Organization one dimensional view of, 38 (NATO), 123, 136 two dimensional view of, 38 Northern Bank, robbery by IRA of, 70, three dimensional view of, 38–9 72, 88 Provisional Irish Republican Army, 35, Northern Ireland, 70, 152 60, 70, 72, 88, 148, 150–4 Northwest Frontier Province (NWFP), psychology (academic discipline), 90, see Khyber-Pakhtunkhwa 106, 109, 159, 169 Province, Pakistan Nukhaev, Koj-Akhmed, 9 Qasmani, Arif, 156 Nuristan, Afganistan, 147 Qatar, 7 Qur’an, Holy, 7 Obama Administration, 148 Odense, Denmark, 119–20 rationality, 110, 128–30, 134, 154–5 offshore, 170 rational fools, 128 oil, 9, 142 as reasoned scrutiny, 128, 130 O’Neill, Paul, 30–1 Reagan, Ronald, 152 Organization for Economic Real Irish Republican Army (RIRA), 51 Cooperation and Development realism, 128, 174, 177–8, 183–4 (OECD), 170 Red Cross and Red Crescent, organized crime, 12–13, 40, 77, 156 International Committee of the, 9, 11 Pakistan, 4, 7, 46–51, 59, 77, 83, 112, refrigerators, 47 123–5, 136, 144, 146–7, 156 refugees, 5, 12, 14, 17–18 Pakistani rupees, 46 remittances, 32, 76, 81, 120–1, 134, Palestine Liberation Front (PLF), 50 168 Palestinian Islamic Jihad (PIJ), 62 rents and rent-seeking, 118 Palestinian Territories and Palestine, Revolutionary Armed Forces of 48–51, 114, 131, 150, 153, 165 Colombia (FARC), 51 Pankisi Gorgem, 5–6, 8–9, 11–13, 15 Revolutionary Organization 17 Papua New Guinea, 5 November, 51 Pashtun people, 4, 123, 136 Revolutionary People’s Liberation Peripheral support of terrorist actors, Party/Front (DHKP/C), 51 142, 150–4, 158 Revolutionary Struggle, 51 Peru, 51 Ricin Plot, 6 236 Index risk, 2, 32, 47, 75–6, 89, 92, 157, 163, suicide bombings, 52, 60, 62 185, 193 n10 Sunni Islam and Sunnis, 102, 117, Russia, 6, 8, 13, 41, 48, 61, 193 n15 123 SunTrust Bank, 60, 62, 80, 139 safe passage, 12, 14, 119 Supreme Court, US, 21, 29, 148–9 Sahel, the, 59 Sympathetic support of terrorist Salafism and Salafists, 7, 15, 69, 144 actors, 55, 143, 146–7, 157–8 Sangin, Afghanistan, 46 Syria, 50–1, 103, 145 Saudi Arabia, 6–7, 10, 18, 48, 62, 142, 146 Royal family of, 10, 18 Tajikistan, 49 Schiphol Airport (Amsterdam), 120 Takfirism, 69, 144, 146 Schmitt, Carl, 179–80, 184 Tax havens, 170 Sen, Amartya, 128–30, 134 Tbilisi, Georgia, 4, 8, 10, 13, 41 shares of businesses, 14, 24 Tehrik-e-Taliban Pakistan, 51, 123 Sharia, 119, 122 telephones, 66 Shatili, Georgia, 4, 14 terror free investing, 57 Shatoi, Chechnya, 8 terrorism Shi’ia Islam and Shia, 102–3, 150 as cheap, 63–4 Shining Path (Sendero Luminoso, SL), costs of selected attacks, 63 51 as expensive, 64, 71 Sinn Fein, 147, 153 relationship between economic Smith, Adam, 172 success and, 65, 67–70, 163, 172 smuggling, 5–6, 8, 14–15, 24, 56, 59, terrorist attacks 115, 120, 135–6, 151–2 1998 US embassy bombings, 63, 82 social balance of power, 183–4 9/11, 25, 28, 31, 60, 62, 78, 80, 82, Somalia, 48, 87, 112, 118–23 84, 86, 88, 139 Somali people, diaspora of, 119–22 Bali nightclub bombings, 63 Soviet-Afghan War, 5, 7, 8, 13, 146 Jakarta Marriott hotel bombing, 63 Soviet Union, the, 13 London transport bombings, 56, 63 Spain, 48, 50, 63 Madrid transport bombings, 63 Specially Designated Global Terrorists USS Cole, 7, 63 (SDGT), 18, 57, 147, 156 Sponsorship of terrorist actors, 142–5, terrorist finance 151, 154, 156, 158, 166 as an issue of politicized Sri Lanka, 50 representation, 29, 90, 107 State Security, Georgian Ministry of, banality of, 27, 77–9, 88, 93 14 everyday nature of, 2, 24, 27, 53, States and the State, 41, 75, 82, 119, 59–60, 75, 78–80, 102, 109, 149, 155, 161, 164–5, 170–1, 112, 114, 132, 159, 162–3, 189 174 fungibility of, 70–1, 154 State, US Department of, 34–5, 41, 45, as a mediated issue, 29, 32–3, 37, 39, 47 91, 106–7, 109, 160–1, 169, 171 stock (economics), 100 right questions about, 97, 99, 101, strategy of limits, 177, 181–2, 184 103, 105, 107, 109–11, 137, Strela surface-to-air missile, 5 143, 154, 171, 173 Subsidies of terrorist actors, 62, 142, shaping thinking about, 38, 79, 88 147–51, 154 wrong questions about, 42, 98, 104, Sufi Islam and Sufis, 4, 6 190 Index 237 terrorist finance, myths about Thatcher, Margaret, 152 more/less financing always equals theft and stealing, 5, 13, 24 more/less terrorism, 64–7 of banks, 72 systematically understanding of cars, 13, 17–18, 22, 24, 124–5 terrorist finance is unrealistic, of humanitarian aid, 13, 22, 24 91–3 Toyota vehicles terrorist finance is illicit, 73–8 Corolla, 125 terrorist finance is a threat to Hilux, 123–5 international security, 81–7 Land Cruiser, 125 terrorist financing is primarily about tractor parts, 45 money, 43–5 trade, 8, 13, 35, 45–7, 55–6, 59, 65, 75, terrorists have unified, coherent 113, 117–24, 126, 136, 147, 178, financial structures, 55–8 190 terrorist finance, realities of taxation of, 118, 121 analysis of terrorist finance can be trade-based money laundering, 47 systematic, albeit not objective, trade goods, 45–7, 113, 119, 121, 126 93–5 trafficking, 8, 82, 94, 120, 135–7, 147 the relationship between terrorism Transcaucasian Energy Consortium, 9 and economic success depends Transitional Federal Government on context, 67–73 (TFG – Somalia), 119 terrorist finance is about the transit trade, 46, 124 exchange of value, 45–55 Trans Sahara, 59 terrorist finance is a compendium of travel agencies, 32 individual exchanges, 58–64 Treasury, US Department of the, 2, 18, terrorist finance is extra-legal, 78–81 30, 32, 34, 44–5, 52–3, 55, 57, 87, understanding terrorist finance is a 156 simply a means to analyze and Tskhinvali, Georgia (South Ossetia), address threats from terrorist 5–6, 193 n32 actors, 87–91 Turkey, 13, 50–1, 145 terrorist financing activity Tush people, 4 as infrastructure, 21, 31, 56–7, 63, 102–4, 114, 117, 126, 131, 138 Uganda, 118 instrumentality of, 90, 98, 105, Ummah, the, 69 110–11, 114–15, 131, 136–8, United Arab Emirates, 77 143, 167, 179 United Kingdom (UK), 6, 49–51, 56, as product of dedicated financial 63, 72, 94, 120, 152 cells/sections, 55–6, 58 United Nations Security Council, 35, terrorist organizations 82 charitable and political wings of, Resolution 1269, 82 147–8 United Nations (UN), 10–11, 31–2, 46, lexicon of critical resources required 83, 86, 148 by, 65–6 United Self-Defense Forces of as socio-political actors, 2, 24, 45, Colombia (AUC), 51 52, 55, 75, 77, 79, 88, 95, 153, United States of America, 9, 11, 23, 28, 188 30–2, 44, 46, 65, 82, 86, 94, 119, Terminator view of, 70 123, 139, 146–8, 151–3, 185 understanding operational versus Uruzgan, 46 socio-political capabilities of, USA PATRIOT Act, 76 65–70 US Dollars, 6, 8, 24 238 Index

US Government, 7, 17–19, 23, 33–4, vehicles, 13, 24, 47, 54, 66, 117, 123–6 84, 103, 112, 147–8, 151–2, 165 vendors, 28 USS Cole, 7, 63 U-Turn trade-based money laundering Wahhabism, 6, 9, 15 schemes, 47 Waziristan, North, 123–4, 126 Uzbekistan, 49 Waziristan, South, 123 Weapons, 2, 5–6, 8, 10, 12–14, 21–4, Vainakhsi, 5 28, 58, 68, 87, 113, 117–18, 122, value, 3, 9–15, 21–2, 25–6, 43, 45–7, 127, 134, 137, 151, 156–7, 188 52–5, 61, 63, 65, 70, 75–6, 78, 83, Weber, Max, 178–9 90, 95, 97, 99, 101, 104, 106–7, Web sites, 10, 66, 144–5, 157 110, 112–19, 121, 123–7, 129–41, wire transfers, 24 143–4, 149, 156–9, 162–3, 169, World Bank, 5, 32, 73 171, 173, 177, 186, 189–90 ﬂows of, 9, 45, 53, 112, 116, 119, xawilaad, 121–3 131, 134, 136 xeer, 122 forms of, 10, 21, 46, 54, 63, 104, 117, 126–7, 131, 140–1, 143, 158 Yemen, 7, 48, 63, 144, 146 transfer of, 12, 15, 45, 52, 76, 121, Yousser Company, 57 134–5 YouTube, 144 value chains, 3, 53, 97, 112–13, 115–17, 119, 121, 123–5, 127, Zabul, Afghanistan, 46 129, 131–7, 139, 156, 171, 186, Zakat, 7, 10, 24, 116, 119, 130 189–90 and “Allah’s Cause”, 7, 194 n45 deﬁnitions of, 113 Zawahiri, Ayman al-, 146