Cashing in on Guns: Identifying the Nexus between Small Arms, Light Weapons and Terrorist Financing ICCT Report i Cashing in on Guns: Identifying the Nexus between Small Arms, Light Weapons and Terrorist Financing ICCT Report March 2021 This research report was produced within the framework of the Collaboration, Research & Analysis Against the Financing of Terrorism- project (CRAAFT). Funded by the European Union’s Internal Security Fund – Police, the project is being implemented by a Consortium led by RUSI Europe, along with the University of Amsterdam, Bratislava-based think tank GLOBSEC and the International Centre for Counter-Terrorism (ICCT), based in The Hague. Funded by the European Union ii About ICCT The International Centre for Counter-Terrorism – The Hague (ICCT) is an independent think and do tank providing multidisciplinary policy advice and practical, solution-oriented implementation support on prevention and the rule of law, two vital pillars of effective counter- terrorism. ICCT’s work focuses on themes at the intersection of countering violent extremism and criminal justice sector responses, as well as human rights-related aspects of counterterrorism. The major project areas concern countering violent extremism, rule of law, foreign fighters, country and regional analysis, rehabilitation, civil society engagement and victims’ voices. Functioning as a nucleus within the international counter-terrorism network, ICCT connects experts, policymakers, civil society actors and practitioners from different fields by providing a platform for productive collaboration, practical analysis, and exchange of experiences and expertise, with the ultimate aim of identifying innovative and comprehensive approaches to preventing and countering terrorism. Licensing and Distribution ICCT publications are published in open access format and distributed under the terms of the Creative Commons Attribution-NonCommercial- NoDerivatives License, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited, and is not altered, transformed, or built upon in any way. ICCT Report March 2021 DOI: 10.19165/2021.3.03 ISSN: 2468-0486 iiiiii About the Authors Tanya Mehra, Senior Researcher and Project Lead, International Centre for Counter Terrorism – The Hague Méryl Demuynck, Researcher, International Centre for Counter Terrorism – The Hague Colin Clarke, Director of Policy and Research, The Soufan Group Nils Duquet, Director Flemish Peace Institute Cameron Lumley, Project Manager and Fellow, Matthew B. Ridgway Center for International Security Studies Matthew Wentworth, Research Assistant, International Centre for Counter Terrorism – The Hague Acknowledgements This report was a collective effort not only by the authors but also by many who have contributed in many different ways during the different stages of the report. ICCT is grateful to our former colleague Reinier Bergema, our current project manager Gijs Weijenberg and project assistant Jerome Meyer who have contributed the quality of the report and their tireless efforts in editing and formatting of the report. ICCT further wishes to thank CAR for sharing their insights and valuable data. Finally, ICCT wishes to thank all interviewees for their willingness and openness to share their views which have been indispensable for this report. This publication is published in open access format and distributed under the terms of the Creative Commons Attribution-Non- Commercial-No-Derivatives License, which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited and is not altered, transformed, or built upon in any way. The report should be cited as: Demuynck, M., Mehra, T., Clarke C., Duquet, N., et al., ‘Cashing in on Guns: Identifying the Nexus between Small Arms, Light Weapons and Terrorist Financing’, The Hague: International Centre for Counter- Terrorism - The Hague (ICCT), March 2021. The views and recommendations expressed in this publication are those of the authors. Cover image “ONUB: Demobilization of Burundian Military” by United Nations Photo is licensed under CC BY-NC-ND 2.0 iv Frequently Used Acronyms AML Anti-Money Laundering APC Armoured Personnel Carriers AQAP Al-Qaeda in the Arabian Peninsula AQI Al-Qaeda in Iraq AQIM Al-Qaeda in the Islamic Maghreb ATT Arms Trade Treaty CFSP Common Foreign and Security Policy CMA Coordination of Azawad Movements (Coordination des Mouvements de l’Azawad) CTF Counter-Terrorism Financing CVR Community Violence Reduction DDR Disarmament, Demobilisation, and Reintegration ECCAS Economic Community of Central African States ECOWAS The Economic Community of West African States EFP Explosively Formed Penetrators EU European Union EUCAP European Union Capacity Building Mission EUTM European Union Training Mission FATF Financial Action Task Force FSU Former Soviet Union FTF Foreign Terrorist Fighters GPS Global Positioning System GSPC Salafist Group for Preaching and Combat (Groupe Salafiste pour la Prédication et le Combat) HCUA High Council for Unity of Azawad (Haut Conseil pour l’Unité de l’Azawad) HTS Haya’t Tahrir al-Sham IED Improvised Explosive Device IRGC Islamic Revolutionary Guard Corps IS-Sinai Islamic State Wilayat Sinai ISGS Islamic State in the Greater Sahara ISIS Islamic State in Syria and Iraq ISWAP Islamic State West Africa Province ISY Islamic State in Yemen ISIS-YP Islamic State of Iraq and Syria—Yemen Province JNIM Jamaat Nusrat al-Islam wal Muslimeen KFR Kidnapping for Ransom KH Kata’ib Hezbollah LAS League of Arab States MANPAD Man-Portable Defence Systems MENA Middle East and North Africa MINUSMA (United Nations) Multidimensional Integrated Stabilization Mission in Mali MINUSCA (United Nations) Integrated Multidimensional Mission for Stabalization in Central Africa v MNLA National Movement for the Liberation of Azawad (Mouvement National de Libération de l’Azawad) MONUSCO United Nations Mission in the Democratic Republic of the Congo (Mission de l’Organisation des Nations unies en République démocratique du Congo) MUJAO Movement for Unity and Jihad in West Africa (Mouvement pour l’Unité et le Jihad en Afrique de l’Ouest) UN PoA UN Programme of Action on SALW PKK Kurdistan Workers Party (Partiya Karkenên Kurdistan) RFP Regional Focal Point RPG Rocket-Propelled Grenade RUF Revolutionary United Front SALW Small Arms and Light Weapons SSR Security Sector Reform (S)VBIED (Suicide) Vehicle-Borne Improvised Explosive Device UNAMID United Nations – African Union Mission in Darfur UNMIL United Nations Mission in Liberia UNIDDRS United Nations Integrated Disarmament, Demobalisation and Reintegration Standards UNSC United Nations Security Council UNTOC United Nations Convention against Transnational Organised Crime WAM Weapons and Ammunition Management WCO World Customs Organization Firearms UN Protocol against the Illicit Manufacturing of and Protocol Trafficking in Firearms, Their Parts and Components and Ammunition Moratorium Moratorium on the import, export, and manufacture of light weapons 2005 SALW Strategy to Combat the Illicit Accumulation and Strategy Trafficking of SALW and Their Ammunition vi Contents Executive Summary 1 Introduction 3 West Africa 8 2.1. Introduction 8 2.2. SALW possession and acquisition by terrorist organisations 10 2.2.1. Types of SALW possessed by terrorist organisations 10 2.2.2. The acquisition of SALW by terrorist organisations 16 2.3 The use of SALW as a source of finance 23 2.3.1. SALW and the prevalence of the crime-terror nexus 23 2.3.2 Scope and dynamics of the indirect use of SALW as a source of terrorist finance 28 2.3.3. Scope and dynamics of the direct use of SALW as a source of terrorist finance 34 2.4. Conclusion 37 Middle East 40 3.1. Introduction 40 3.2. SALW possession and acquisition by terrorist organisations 41 3.2.1 Types of SALW possessed by terrorist organisations 42 3.2.2. Acquisition of SALW by terrorist organisations 46 3.3. The use of SALW by terrorist organisations as a source of finance 57 3.3.1. SALW and the prevalence of the crime-terror nexus 58 3.3.2. Scope and dynamics of the indirect use of SALW as a source of finance 59 3.3.3 Scope and dynamics of the direct use of SALW as a source of finance 65 3.4. Conclusion 67 The suitability of DDR programmes to disarm terrorist groups 69 4.1. Introduction 69 4.2. D for Disarmament 69 4.3. From first to third generation of DDR programmes 71 4.4. DDR as a tool which incorporates terrorists 72 4.5. The Potential for DDR to Negatively Impact SALW Flows 73 4.6. From Traditional to Transitional Weapon Management 76 vii 4.7. Concluding remarks 80 Combatting the direct and indirect use of SALW by terrorist organisations as a source of finance 81 5.1. Arms control perspective 81 5.1.1. International level 81 5.1.2. EU level 86 5.1.3 Regional level 92 5.2. Criminal Justice and Organised Crime Perspective 96 5.3. Combatting Terrorist Financing (CFT) Perspective 97 Short- and long-term consequences for Europe 100 6.1. Introduction 100 6.2. The consequences of SALW possession 100 6.2.1. Short-term consequences 100 6.2.2. Long-term consequences 101 6.3. A greater European involvement 102 6.4 Tightening SALW exports 102 6.5. Conclusion 103 Conclusions and Recommendations 104 7.1. Comparisons between West Africa and Middle East 104 7.1.1. What types of SALW do terrorist groups possess in West Africa and the Middle East? 104 7.1.2. How do terrorist groups acquire SALW in West Africa and the Middle East? 104 7.1.3.