Chapter 3 Terrorism
How does the Hawala system, based primarily in Pakistan and India, distribute money?
Dealers honor the receipts they receive from other dealers in the system.
Concerns about the United Nations' _____ include the lack of a uniform definition of terrorism, the lack of applicable national laws, and the lack of due process.
FATF
The term Capone discovery was used by James Adams to refer to the _____.
IRA's involvement in organized crime to fund its operations
One of Hezbollah's main sources of illegal income inside Lebanon is _____.
a protection racket
The three steps of terrorist financing are _____ funds.
acquiring, securing, and disbursing
Hamed Tofangsaz (2015) proposes that terrorist financing develops in distinct phases. These involve, in order, the _____ of funds.
acquiring, securing, disbursing
American _____ are valued throughout the world for their nutritional values and may be stolen and sold to finance terrorist operations.
baby formulas
According to Giraldo and Trinkunas, the economic key to survival for terrorist groups is _____
becoming self-sufficient
Hamed Tofangsaz (2015) believes that terrorists require three types of financing: _____
cash and cash-like entities, tangible goods, and intangibles
Al Qaeda in the Islamic Maghreb (AQIM) became the primary source of income for the al Qaeda network by smuggling _____.
cigarettes
In a 2003 analysis, the Economist characterized terrorism as _____.
cost-effective
Victor Dostov and Pavel Shust (2014) suggest that additional financial support for terrorists may come from the rapidly growing sector of the legitimate economy known as _____.
customer loyalty programs
The fundamental difference between money laundering and terrorist financing is in the _____ of flow in cash, goods, and services.
direction
A terrorist operation usually ____.
does not cost a lot of money, but the overall budget for a campaign is quite high
Terrorist groups may raise money legally through _____.
donations to charities
n Modern Jihad, Loretta Napoleoni argues that the _____ and subsequent globalization led to the new economy of terrorism.
fall of the Soviet Union
Although there is a lack of quantitative data, qualitative data suggest that efforts to disrupt terrorist financial networks _____.
have disrupted several plots
The third step of money laundering, known as ____, involves presenting illegally gained money in the formal economic system as if it were the result of a legal activity.
integration
Money ____ allows criminals to account for their assets without linking the source of the money to the crimes they committed.
laundering
In the second step of money laundering, illegal income is concealed by multiple transactions. What is this process called?
layering
Organizations with hidden links to terrorist groups engage in _____ to give the appearance that funds are being used for a purpose other than supporting terrorism.
layering
In _____, drug profits are used to finance terrorism, or alternatively, drug gangs use terrorism to control production and distribution.
narcoterrorism
An important difference between the finances of organized crime and those of terrorist groups is that _____.
organized crime usually commits the illegal activity prior to getting money rather than afterward
The first step of money laundering, _____, involves deposit of the illegal profits in a legitimate financial stream.
placement
The Brazilian terrorist-philosopher Carlos Marighella argued that "urban warfare" begins with a campaign of _____.
robbery
A political situation in which a government nominally controls its own state, but where large regions are either anarchic or under the control of others, is called a _____ state.
shell
Hezbollah ____ from North Carolina to Michigan to help fund operations in Lebanon.
smuggled cigarettes
One of the first nations to establish legislation related to the financing of terrorism was ____
the United Kingdom
Traditional financial investigations are not effective against terrorists because ____.
the amount of money involved is small
According to Rachel Ehrenfeld, _____ is one of the primary sources of income for terrorist groups.
the narcotics trade