The terrorism financing cycle involves three stages that terrorist organisation may use to support a terrorist network, organisation, or cell.
Stage 1 – Raising funds
Raising funds is about how funds are raised to support terrorism financing and that can be done via legitimate or criminal activities.
- criminal activity.
Stage 2 – Transferring funds
Transferring funds is about how funds are transferred to a terrorist network, organisation, or cell, and money laundering is often associated with this stage of the terrorism financing cycle.
Funds need to be stored at each stage of the terrorism financing process. Storage methods can range from hiding cash in a private residence or in a sandooq (cash box), to depositing funds in a bank account or other financial product.
Money laundering may be a part of the transferring funds process, when dealing with funds that have been sourced via criminal activity, used to make those funds look like they have come from a legitimate source.
Stage 3 – Using funds
Using funds is about how funds can be used for direct and indirect support of terrorist activities carried out by the terrorist network, organisation, or cell.
- purchasing weapons or bomb making equipment
- payment to insurgents
- covering living expenses for a terrorist cell.
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