1st Edition

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





ISBN 9781439828502
Published August 8, 2011 by CRC Press
232 Pages - 4 B/W Illustrations

USD $99.95

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Book Description

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.

Table of Contents

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 Crime

The 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
Manpower
Financial Resources and the Return on Investment
Work Processes
Strengthening Stakeholder Relations
Tightening 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

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Author(s)

Biography

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.

Reviews

"The book is great and I have required it of my students this semester."
—Moyara Ruehsen, PhD, CAMS, Monterey Institute of International Studies Graduate School of International Policy & Management

" … the book’s objective is remarkably difficult, if not impossible, to achieve. Nonetheless, [it] elucidates a complex field with text that is easy to understand, and it is rich in examples, citations, and exhibits."
—Courtney Banks Spaeth, CEO of National Security Associates Worldwide, in Security Management

"As a guide to the problem, Terrorist Financing, Money Laundering, and Tax Evasion is a valuable source."
Intelligence Officer’s Bookshelf, CIA website

"Especially interesting are the author’s discussion of how financial crime is committed and the application of a "balanced scorecard" method in measuring programmatic effectiveness in countering terrorist funding."
—Joshua Sinai, Perspectives on Terrorism

" … a very useful, interesting, and stimulating project. For anyone wishing to know something about terrorist financing, developments in counter terrorism, and the work of all the organizations that operate in this area, I highly recommend this book. … contains a lot of interesting facts and figures and is really excellent in showing the relevant case studies.
—Friedrich Schneider, Johannes Kepler University of Linz, Austria, in International Criminal Justice Review