Global terrorism has become a serious threat in the past two decades.

It thrives upon Global financing, which is done by sending funds across borders to terrorist groups.

Despite their loss of territory and visibility, Islamic State, Al Qaeda and their affiliated terrorist organisations continue to have access to resources enabling them to carry out or inspire terrorist attacks around the world.

How it is done?

Narcotics smuggling, black marketing of oil and businesses such as car dealerships, cab companies etc are the major sources of funding for terror groups.

Islamic State used black marketed Iraqi oil to run its operations in Iraq and Syria.

At its peak in 2015, its estimated annual revenue reached $2billion, which was the equivalent to the GDP of some small nations.

Other sources

Terror groups also use money laundering in which cash raised from criminal activities is made to look legitimate for routing it back into the financial system.

These transactions are often disguised as donations to charities and gifts from family etc.

Online Route

Nowadays, the internet is rapidly becoming a means of terror funding.

Terrorist groups use propaganda in order to collect funds from their followers.

Such donations provide anonymity to both donor and recipient.

Govts. taking action

To tackle this problem, countries around the world have framed and strengthened anti-money laundering and terror financing laws.

The U.S govt. passed United States Patriot Act after the 2001 Sept. 11 attacks, to monitor financial institutions.

India has also taken steps in this regard by constituting a Terror Funding and Fake Currency Cell in National Investigation Agency (NIA) to conduct an investigation of terror funding and fake currency cases.