CYIL vol. 8 (2017)

CYIL 8 ȍ2017Ȏ MONEY LAUNDERING AS A FORM OF FINANCING TERRORISM … financial intelligence agency MASAK, during the year 2015, processed 387 people suspected of money laundering, of which only 61 people were under suspicion that their money laundering was linked to financing terrorism. 26 An intergovernmental body, the FATF Group (Financial Action Task Force) is responsible for establishing standards and the implementation of legal and operational measures for preventing money laundering and terrorist financing in collaboration with numerous international organization and the expert groups investigating mechanisms that ISIL used for washing money. 27 An Italian charitable organization for children affected by war in Syria who need help was used as a paravane for funding ISIL. The money collected from all over Europe-intended humanitarian purposes was channeled to Turkey directly into the hands of terrorists. Non-governmental organizations (NGOs) in Turkey, Bosnia and Serbia (Sandzak region) and other countries are convenient modalities for money laundering under the cover of the civil sector for the protection of human rights, assistance to vulnerable and marginalized social groups, the Muslim religion, and the like. 28 Numerous investigative journalist ventures related to the flows of money laundering of ISIL pointed to the methodology of using social networks. 29 Money collected through social networks and in mosques in the UK is sent to Bosnia through MoneyGram’s 30 where it is forwarded to the territory under the control of ISIL. British media published the information that an intelligence service MI5 informant was paid £2000 for reporting on illegal activities in mosques in the UK. The Hawala system of money transfer is a serious problem for financial intelligence services that are trying to detect the flow of money and financing of terrorist organizations. The mentioned money transfer system is based on trust and leaves no traces in writing, giving users the anonymity and protection of identity. For these reasons, the system is suitable for the transfer of “dirty” money to ISIL terrorists because it provides the possibility for terrorists to conceal the purpose of money which is transferred between their members. 31 As the investigation revealed, one of the main organizers of the terrorist attacks on America in 2001 used the Hawala system to transfer funds. Data intelligence structures in the western countries claimed that the Hawala system of money transfer is extremely popular and is present in Spain, where there are over 250 Hawala dealers who financed terrorists in Syria and Iraq. 32 26 Ibid. 27 RANSTORP, Magnus, “Microfinancing the Caliphate: How the Islamic State is Unlocking the Assets of European Recruits”, Combating Terrorism Center at West Point , Volume 9, Issue 5. (2016). 28 Unexpected source of income: charitable organization in Italy funded Daesh [2016] http://sputniknews.com/ politics/20151206/1031324523/daesh-europe-italy-charity-money-terrorism-financing.html Accessed 29 June 2016. 29 HINTON, Joe, Collections at UK mosques “fundraising for terror” [2016]. http://www.dailystar.co.uk/news/latest- news/476949/UK-mosque-terror-fund-cash Accessed 05 July2016. 30 MoneyGram as the leading system for the transfer of money in the world is suitable for concealing the origin of money through multiple transactions. 31 KRUEGER, M., E-money regulation in the EU. Journal of the European Communities on , 27(2). (2000). 32 Spain’s Hawala networks funds ISIS and al-Nusra [2016] https://moneyjihad.wordpress.com/2015/02/01/spains- hawala-network-funds-isis-and-al-nusra/ Accessed 06 July 2016.

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