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

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.

Jayesh D’Souza is a doctoral graduate from Florida International University’s Public Administration Program. Mr. D’Souza is a specialist in public policy, finance, and economics and has a number of publications and presentations in governmental financial performance, counterterrorism, economic development, energy and the environment, education, and health care. His past employers include the Government of Ontario and T. D. Waterhouse.

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 CrimeThe 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 ManpowerFinancial Resources and the Return on Investment Work Processes Strengthening Stakeholder RelationsTightening 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