The Conflict

Measures to deprive terrorists of their funding must be part of any effort to counter the threat of terrorism. This endeavor is complicated by financial systems, law, and the covert means often used by terrorist groups to gather and distribute money. There are four main sources of terrorist funding: state sponsorship from countries like Iran; contributions from individual supporters; criminal activities, including kidnapping, robbery, smuggling, drug trafficking, fraud, and extortion; and legitimate business activities including manufacturing, import-export, and investment companies.

Financial

• In order to move funds around undetected, terrorists use both primitive methods (hawalas or cash smuggling) and sophisticated financial techniques ("shell" banks, electronic fund transfers).
• The al-Qaeda terrorist organization, headed by Osama bin Laden, has established an extremely extensive and sophisticated financial network that operates across the globe.

Political

• There are several ways for countries...