Threat Finance: Disconnecting the Lifeline of Organised Crime and Terrorism

329 Pages·2012·2.99 MB·English

by  Shima D. Keene

Threat Finance
I dedicate this book in loving memory to my late father Professor Dennis Keene,
scholar, poet, translator and philosopher
Also a wonderful father, mentor and my dearest friend
and an epitome of all in life that is pure and good.
Thank you.
Until we meet again…
Threat Finance
Disconnecting the Lifeline of
Organised Crime and Terrorism
Dr Shima D. Keene
© Dr Shima D. Keene 2012
All rights reserved. No part of this publication may be reproduced, stored in a retrieval
system or transmitted in any form or by any means, electronic, mechanical, photocopying,
recording or otherwise without the prior permission of the publisher.
Dr Shima D. Keene has asserted her moral right under the Copyright, Designs and Patents
Act, 1988, to be identified as the author of this work.
Published by
Gower Publishing Limited Gower Publishing Company
Wey Court East Suite 420
Union Road 101 Cherry Street
Farnham Burlington,
Surrey, GU9 7PT VT 05401-4405
England USA
www.gowerpublishing.com
British Library Cataloguing in Publication Data
Keene, Shima D.
Threat finance : understanding and countering the finance of organised crime and terrorism.
1. Terrorism – Finance – Prevention. 2. Terrorism investigation.
I. Title
363.3'2517–dc23

Library of Congress Cataloging-in-Publication Data
Keene, Shima D.
Threat finance : disconnecting the lifeline of organised crime and terrorism / by Shima D.
Keene.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4094-5309-3 (hbk. : alk. paper) – ISBN 978-1-4094-5310-9 (ebook)
1. Terrorism – Finance. 2. Organized crime – Finance. 3. Commercial crime – Prevention.
I. Title.
HV6431.K385 2012
363.325–dc23
2012019100
ISBN 9781409453093 (hbk)
ISBN 9781409453109 (ebk)
V
Contents
List of Figures and Table vii
List of Cases ix
List of Statutes and Statutory Instruments xi
About the Author xiii
Acknowledgements xv
Reviews of Threat Finance xvii
Introduction 1
Chapter 1 Understanding the Threat Environment 15
Chapter 2 Emerging Threats: Security and Legal Challenges in the
Cyber Environment 45
Chapter 3 Terrorist Finance 93
Chapter 4 Mechanisms of Illicit Funds Transfer 129
Chapter 5 Money Laundering 155
Chapter 6 Key Methods of Intervention 189
Chapter 7 Addressing Key Challenges 223
Chapter 8 Conclusions and the Way Forwards 259
Bibliography 271
Index 295
Contents
List of Figures and Table vii
List of Cases ix
List of Statutes and Statutory Instruments xi
About the Author xiii
Acknowledgements xv
Reviews of Threat Finance xvii
Introduction 1
This page has been left blank intentionally
Chapter 1 Understanding the Threat Environment 15
Chapter 2 Emerging Threats: Security and Legal Challenges in the
Cyber Environment 45
Chapter 3 Terrorist Finance 93
Chapter 4 Mechanisms of Illicit Funds Transfer 129
Chapter 5 Money Laundering 155
Chapter 6 Key Methods of Intervention 189
Chapter 7 Addressing Key Challenges 223
Chapter 8 Conclusions and the Way Forwards 259
Bibliography 271
Index 295
List of Figures and Table
Figures
Figure 4.1 IVTS mechanism of funds transfer 135
Figure 5.1 Basic money laundering model 164
Figure 6.1 Suspicious activity reporting process 210
Figure 6.2 SARs related to terrorism in 2001 and 2002 214
Table
Table 1.1 Al-Qaeda’s four-stage strategic plan (2001–2029) 23
This page has been left blank intentionally
List of Cases
Ahmed Ali Yusuf and Al Barakaat International Foundation v Commission [2005]
T-306/01
Ahmed and others v HM Treasury [2010] UKSC 2
Al-Ghabra v HM Treasury [2010] 4 All ER 829
Al Rajhi Banking and Investment Corporation v Wall Street Journal Europe SPRL
[2003] EWHC 1776 (QB)
A v HM Treasury [2010] UKSC 2
A v HM Treasury [2010] 4 All ER 745
A v HM Treasury [2010] 2 WLR 378
A v HM Treasury [2010] All ER (D) 179
A, K, M, Q and G v HM Treasury [2008] EWHC 869
A and others v HM Treasury [2008] EWCA Civ 1187
Federal Insurance Company, et al., Petitioners v Kingdom of Saudi Arabia, et al. [2008]
(06-0319 (L)) United States Court of Appeals for the Second Circuit
HM Treasury v Ahmed [2010] All ER (D) 40
HM Treasury v Ahmed [2010] UKSC 5 (SC)
Yassin Adbullah Kadi v Council and Commission [2005] T-315/01
Kadi v Council of the EU and the Commission [2008] c-415/05P 3 CMLR41
Kadi v EU Council and another; Al Barakaat International Foundation v EU Council
and another [2010] All ER (EC) 1105
Kadi v European Commission [2010] All ER (D) 79 (Oct) T-85/09
Kadi v European Commission (supported by EU Council and others, intervening)
[2011] 1 CMLR 697
Kadi v European Commission (supported by EU Council and others, intervening)
[2011] All ER (EC) 169
Marfouz v Ehrenfeld [2005] EWCH 1156 (QB)
R v Allsop and others [2005] EWCA Crim 703
R v Aurora [2010] T2010/0359 (Croydon Crown Court)
R v Ajit Arora & 1 Other [2010] T2010/0358 (Croydon Crown Court)
R v Cuthbertson [1981] AC 470