1st Edition

Terrorist Financing, Money Laundering, and Tax Evasion Examining the Performance of Financial Intelligence Units

By Jayesh D'Souza Copyright 2012
    232 Pages 4 B/W Illustrations
    by CRC Press

    232 Pages
    by CRC Press

    Tracking funding is a critical part of the fight against terrorism and as the threat has escalated, so has the development of financial intelligence units (FIUs) designed to investigate suspicious transactions. Terrorist Financing, Money Laundering, and Tax Evasion: Examining the Performance of Financial Intelligence Units provides a thorough analysis of the financing phenomenon from the raising of funds to government agencies’ efforts to interdict them to measuring and monitoring the outcomes of these efforts.

    This volume begins by presenting deep-rooted conflicts in the Middle East, the United States, the Indian subcontinent, Northern Ireland, and South America that have led to modern terrorism. It describes recent developments in counterterrorism and discusses the next steps in intelligence reform. Next, the author discusses how financial crime is committed, examining the source of funds from money laundering and tax evasion among others, and the transfer of these funds. He then covers performance and risk management, and the process of measuring performance using the balanced scorecard method. The book presents an overview of anti-money laundering and counterterrorist financing initiatives in several regions around the globe: the European Union, Asia Pacific, North America, Latin America and the Caribbean, the Middle East, and Africa. It concludes with a survey of experts’ opinions on the efficacy of current programs and recommendations for improving government performance in countering terrorist financing and related money laundering and tax evasion.

    Knowing what to target and how to measure results are essential for performance enhancement in preventing and interdicting financial criminal activity. Establishing the need for accurate assessment of the success and failure of FIUs, the book demonstrates how monitoring and measuring progress is a crucial part of financial interdiction efforts in the fight against terrorism.

    The Organization of Terrorism and the Reorganization of Intelligence
    The Roots of Religion-Based Terrorism
    The Middle East
    The United States of America
    The Indian Subcontinent
    Northern Ireland
    South America
    Recent Developments in Counterterrorism
    Legislation and Surveillance
    Law Enforcement
    Intelligence Reform
    The Next Steps in Intelligence Reform
    Balancing Counterterrorism Action with Civil Liberties
    Cross-Training Intelligence Personnel to Enhance Coordination
    Providing Incentives for Cooperation and Disincentives for Failure

    How Financial Crime Is Committed: The Source of Funds

    Terrorist Financing
    State Sponsors
    Individual/Corporate Contributors
    Nonprofit Organizations
    Government Programs
    Illegal Sources
    Money Laundering
    Tax Evasion/Fraud
    Stopping Terrorist Funding: Laws, Directives, and Multilateral Agreements

    How Financial Crime Is Committed: The Transfer of Funds

    Financial Institutions
    Wire Transfers
    Financial Instruments—Securities
    Insurance
    Informal Fund Transfer (IFT) System
    Charity
    Commodities
    International Trade
    Offshore Tax Havens and Financial Centers
    Alternative Remittance Systems (ARS)
    Stored-Value Cards
    The Internet and Digital Currency
    Cash Couriers/Smugglers
    Casinos
    Real Estate

    Performance Measurement, Risk Management, and Managing Performance Using the Balanced Scorecard

    A Primer on Performance Measurement
    The Role of Performance Measurement in Countering Terrorism and Terrorist Financing
    Risk Management
    A Derivative of the Balanced Scorecard
    Performance Management of Financial Intelligence Units
    Introductory Questions
    Questions Based on the Balanced Scorecard Approaches
    General Questions
    Comparative Question
    Technical Question

    An International Focus on the Fight against Financial Crime

    The European Union
    Spain
    United Kingdom
    The Netherlands
    North America
    The United States of America
    Canada
    Asia and the Pacific
    Australia
    India
    Latin America and the Caribbean
    Latin America
    The Caribbean
    The Middle East and Africa
    The Middle East and North Africa (MENA)
    The Rest of Africa

    Financial Intelligence Units: Monitoring Resource and Process Outcomes

    Resources
    Technology
    Manpower
    Financial Resources and the Return on Investment
    Work Processes
    Strengthening Stakeholder Relations
    Tightening Work Protocols

    How to Better the End Outcome of the Fight against Financial Crime

    Survey Results
    The United States as a Terrorist Target
    Process and Resource Outcomes Are Vital to Financial Intelligence Agency Performance
    Metrics Used to Track Performance Must Be Definitive
    Current Challenges Facing FIUs
    Overcoming Administrative Impediments
    Increasing Communication
    Determining Direction for the Future
    A Final Word

    Index

    Biography

    Jayesh D'Souza

    "The book is great and I have required it of my students this semester."
    —Moyara Ruehsen, PhD, CAMS, Monterey Institute of International Studies Graduate School of International Policy & Management

    " … the book’s objective is remarkably difficult, if not impossible, to achieve. Nonetheless, [it] elucidates a complex field with text that is easy to understand, and it is rich in examples, citations, and exhibits."
    —Courtney Banks Spaeth, CEO of National Security Associates Worldwide, in Security Management

    "As a guide to the problem, Terrorist Financing, Money Laundering, and Tax Evasion is a valuable source."
    Intelligence Officer’s Bookshelf, CIA website

    "Especially interesting are the author’s discussion of how financial crime is committed and the application of a "balanced scorecard" method in measuring programmatic effectiveness in countering terrorist funding."
    —Joshua Sinai, Perspectives on Terrorism

    " … a very useful, interesting, and stimulating project. For anyone wishing to know something about terrorist financing, developments in counter terrorism, and the work of all the organizations that operate in this area, I highly recommend this book. … contains a lot of interesting facts and figures and is really excellent in showing the relevant case studies.
    —Friedrich Schneider, Johannes Kepler University of Linz, Austria, in International Criminal Justice Review