SOMUN 2023

Disarmament and International

Security Committee (DISEC)

CHAIR - ARNAV SINGH RAWAT

VICE CHAIR - SREESAI KEERTAN JUTTIGA

Agenda For The Year 2023-2024 - Combating Illicit Financing of Terrorism

 Letter From The Chair

Dear Delegates,

It is my great privilege to welcome you to the First Committee of the United Nations General
Assembly; a hale and hearty welcome to DISEC at SOMUN! My name is Arnav Singh Rawat
and I am exhilarated to be your Chair at SOMUN-V. I look forward to having a fruitful debate
with each one of you and a challenging committee that is innovative, dynamic and a sight to
behold.

As your chair, I won’t just be a distant observer, but also an active member of the debate,
helping each delegate make the most of their conference experience. As many of you may or
may not know, DISEC seeks to tackle some pretty big issues and while we probably won't be
able to cover everything during the conference, I sincerely hope that the research process and
the actual debate itself will expose you to new information and an entirely new experience.

Throughout the two-day conference, we will discuss and have a healthy debate on this crisis
that has arisen from the shadows and has simply been biding its time, just waiting for an
opportune moment to strike - I, of course, am talking about our Agenda - “Countering illicit
funding of Terrorism.” Now, it has come upon us, to bring this topic to the forefront and find ways
to research, reinforce and find innovative ways to resolve this topic which has been passed onto
us.

On a more personal note, a fact that many of you would not know about me is that I have and
always will remain adamant about maintaining a robust and substantial debate in the committee
room – I will have little hesitation to pull delegates back into the room if I feel that each speech
are words strung together just to hear the sound of your voice. Similarly, a debate where
delegates are not engaging with one another but just attempting to promulgate and brute force
their ideas without respect for the other thoughts circulating the room will reflect poorly upon
you.

I would much rather see ambitious attempts to create effective solutions and strong
interpersonal dynamics than a string of small successes that do not culminate in anything
significant. That being said, I am incredibly cognizant of how large of an undertaking it is to
participate in such a large GA, and I commend each one of you for having the gallantry to
choose DISEC as your committee.

And finally, if you have any questions or concerns leading up to the conference, whether it is
about the substance of the topics, my expectations for the committee, or any other area, please
do not hesitate to send me a note or just approach me as contrary to what my friends feel, I am
a sociable guy.
As I am sure that by now you must be languishing from this long-windedness of mine, I bid you
adieu and wish all the best with your research and I believe that with our collaborative efforts,
we will well be on our way to prove as to why this committee is also known as the sharpest and
most result-oriented committee of them all.

Warm Regards,
Arnav Singh Rawat
disec.somunhyd@gmail.com
 INDEX

1. Introduction to DISEC
2. Understanding Terrorism
3. Introduction to Terrorism and Illicit Funding
4. International Framework and Legal Instruments
5. Role of Financial Institutions
6. National Strategies and Practices
7. Challenges and Obstacles
8. Global Cooperation and Information Sharing
9. Preventing Radicalization and Recruitment
10. Humanitarian Assistance and Terrorism
Financing
11. Cybersecurity and Terrorism Financing
12. Monitoring and Reporting
13. Measuring Success and Accountability
14. Future Trends and Emerging Issues in
Countering Illicit Funding of Terrorism
15. Proposed Solutions and Recommendations
16. Bibliography
 1. Introduction to DISEC

General Assembly 1, or the Disarmament and International Security Committee (DISEC), was
created under Chapter IV of the United Nations Charter, and it remains one of the main GA
committees. As the First Committee of the General Assembly, DISEC deals with many issues
resulting from heightened tensions, such as nuclear warfare, disarmament, and international
conflict. These conflicts destroy peace and create instability in the world. DISEC was at first a
political committee but was later adapted to be a peacetime and disarmament committee.

Today, the First Committee on Disarmament and International Security provides a forum for
states to discuss their differing perspectives on disarmament matters and work together to reach
compromises or pass resolutions that provide tools to better understand and approach
disarmament and international security concerns. The committee allows states to reach a
consensus on issues. It aims to provide solutions so that states no longer ensure "security" for
themselves by increasing the size of their arsenals but rather negotiate cooperative security
arrangements that reduce weapon spending, arms production, trade, and stockpiles. DISEC
also provides suggestions to the Security Council on issues that need to be discussed.
Warfare and security threats are constantly evolving along with modern technologies, and
DISEC continues its goal of providing general principles of cooperation to promote international
peace. Issues surrounding weaponry and warfare can be challenging, but it is important to keep
international peace at the forefront of debate.

2. Understanding Terrorism

The global terrorism threat today is imminent and more complex than ever. The growing number
of conflict zones around the globe provides transnational terrorist organisations – such as
Da’esh and Al-Qaeda – with multiple fronts on which they can operate simultaneously.

A growing number of groups, ranging from Northern and Sub-Saharan Africa to

Southeast Asia, is shifting their allegiance to Da’esh. Well-coordinated terrorist cells
and lone wolves are increasingly striking the societies in which they are embedded,
far from conflict zones and in unpredictable ways.

The threat posed by foreign terrorist fighter recruitment and movement around the globe is
unprecedented. The availability of, and access to, violent literature and propaganda in multiple
languages has also grown exceptionally and has changed the way recruits are being targeted
and radicalised.
The current generation of terrorists is also technologically savvy and very active on social
media platforms.

With their sophisticated operating and funding models, today’s terrorist organizations can reach
out to a wider sphere of recruits, weapons and materials and thereby step up the scale of
their attacks against civilians and critical infrastructures, including through the use of
Chemical, Biological, Radiological, Nuclear and Explosives (CBRNE) materials and Improvised
Explosive Devices.

The complex combination of shifts in travel patterns, fraudulent travel documents,

far-reaching and devastating attacks, communications and social media manipulation has led to
a ‘decisive stage’ in the fight against terrorism, which demands a comprehensive and
coordinated response .

3. Introduction to Terrorism and Illicit Funding

Definition and Types of Terrorism

Terrorism is a complex and multifaceted phenomenon that poses a significant threat to global
peace and security. Understanding its nature and characteristics is essential for effective
counter-terrorism efforts. Terrorism can be defined as the deliberate use of violence,
intimidation, or the threat of violence to create fear and exert influence for political, ideological,
religious, or social objectives. It often targets civilians or non-combatants and aims to generate
a climate of fear and instability.

As time goes on and the fate of mankind gets inevitably linked to its societal norms and
leadership positions, so too does terrorism evolve and grow into deadly, albeit beautiful
weapons of mass destruction and hysteria. Some of the different types of terrorism prevalent in
our world as of now are:

● State-Sponsored Terrorism: In this form of terrorism, governments or state entities

support and sponsor terrorist organizations to achieve their political goals, either
domestically or internationally. State-sponsored terrorism blurs the line between state
and non-state actors.
● Ideological Terrorism: Ideological terrorists are motivated by a specific ideology or
belief system. They seek to promote their ideas or ideologies through violence, often
targeting those they perceive as threats or enemies of their ideology.
● Separatist Terrorism: Separatist terrorists aim to establish an independent state or
territory separate from their current political entity. They resort to violence to achieve
their goals, often targeting government institutions or security forces.
 ● Religious Terrorism: Religious terrorists use violence in the name of religion, believing
that their actions are sanctioned by divine authority. They may target religious minorities,
perceived heretics, or symbols of opposing faiths.
● Nationalist Terrorism: Nationalist terrorists seek to advance the interests of a specific
nationality or ethnic group, often by targeting perceived oppressors or rival ethnic
groups.
● Single-Issue Terrorism: Single-issue terrorists focus on a particular cause, such as
environmentalism or animal rights, and use violence to draw attention to their concerns
or force change.

The Significance of Countering Illicit Funding

Since the past many decades, terrorism has slowly but surely been on the rise which has not
served us any purpose whilst looking at the larger picture. Countering the illicit funding of
terrorism is of paramount importance for several reasons:

● Global Security: Terrorism poses a direct threat to global security, with the potential to
destabilize regions and even entire nations. Disrupting the financial networks that
sustain terrorist activities is crucial for maintaining peace and stability.
● Protection of Lives: Terrorism can result in loss of life, injury, and trauma for innocent
civilians. Preventing the flow of funds to terrorist organizations can save lives and reduce
human suffering.
● Preventing Radicalization: Many individuals are drawn into terrorist activities due to
financial incentives or support. By cutting off their funding sources, we can deter
potential recruits and mitigate radicalization.
● Undermining Terrorist Capabilities: Adequate funding is essential for terrorist
organizations to carry out attacks, purchase weapons, and sustain their operations.
Countering illicit funding weakens their capabilities.
● Compliance with International Obligations: Member states are obligated to adhere to
international conventions and resolutions aimed at combating terrorism financing,
including those set forth by the United Nations.

Historical Context of Terrorist Financing

The annals of history, particularly that of terrorist financing, shed light on how methods have
evolved and how the international community has responded to this ongoing threat. Over time,
terrorist groups have adjusted their financing tactics to take advantage of weaknesses in the
worldwide financial system. Many of them have been particularly innovative hence proving the
age-old adage that “where there’s a will, there's a way.” Some key historical aspects include:
 ● Precursors to Modern Terrorism Financing: Early forms of terrorism financing
included state support, extortion, and criminal activities. The emergence of non-state
actors with transnational reach added complexity to the problem.
● Response to 9/11: The terrorist attacks on September 11, 2001, prompted a significant
shift in international efforts to combat terrorism financing. The United States and its allies
initiated a global campaign to disrupt funding networks.
● Formation of the Financial Action Task Force (FATF): The FATF was established in
1989 to combat money laundering but later expanded its mandate to include countering
the financing of terrorism (CFT). It has played a pivotal role in setting international
standards.
● UN Security Council Resolutions: The United Nations Security Council has adopted
numerous resolutions addressing terrorism financing, imposing sanctions on individuals
and entities associated with terrorist organizations.
● Evolving Financing Methods: As financial regulations tightened, terrorists adapted by
exploring alternative financing methods, including charities, online platforms, and
cryptocurrencies.

Understanding the history behind terrorist financing helps member states appreciate the
evolving nature of the challenge and underscores the importance of ongoing international
cooperation and adaptation in countering illicit funding. It helps us to state in concrete terms
whether or not the progress we have made has yielded any results or not.

4. International Framework and Legal Instruments

There have been many upheavals over the past few years regarding how the UNSC. UNODC
and FATF along with the international community as a whole have decided to deal with this
delicate issue when the future of the worldwide financial system and the lives of millions of
people hang in the balance. Hence, the international framework and legal instruments are the
backbone of global efforts to combat the illicit funding of terrorism. These instruments provide
the guidelines, standards, and mechanisms for countries to cooperate and take effective action
against the financial networks that support terrorist activities.

● United Nations Security Council (UNSC) Resolutions:

The United Nations Security Council (UNSC) plays a central role in shaping the international
legal framework for countering the illicit funding of terrorism. UNSC resolutions provide a binding
framework for member states to address terrorism financing on a global scale. Key aspects
include:
 ○ Role of the UNSC: The UNSC is the primary international body responsible for
maintaining international peace and security. It recognizes terrorism financing as
a threat to global security and has issued numerous resolutions to combat it.
○ Mandate: UNSC resolutions related to terrorism financing outline the legal
obligations of member states to take specific measures to prevent and counter
the financing of terrorism.
○ Sanctions Committees: The UNSC has established sanctions committees
responsible for implementing measures, including asset freezes and travel bans,
against individuals and entities associated with terrorist organizations. These
committees monitor compliance with sanctions and regularly update lists of
designated individuals and entities.
○ Counter-Terrorism Executive Directorate (CTED): The CTED is tasked with
assessing the implementation of UNSC resolutions related to terrorism financing.
It conducts country assessments and provides technical assistance to member
states.
○ Global Reach: UNSC resolutions apply universally, binding all member states to
comply with their provisions, regardless of their legal systems. Non-compliance
can result in diplomatic and economic consequences.

● International Conventions and Treaties:

International conventions and treaties provide a legal framework for member states to cooperate
in countering terrorism financing. They facilitate mutual assistance, extradition, and legal
cooperation. Key conventions and treaties include:

○ International Convention for the Suppression of the Financing of Terrorism:

Adopted in 1999, this convention obligates states to criminalize the provision of
funds for terrorism, freeze terrorist assets, and cooperate in legal and law
enforcement matters related to terrorism financing.
○ UN Convention against Transnational Organized Crime (Palermo
Convention): The Palermo Convention, along with its protocols, addresses
various forms of organized crime, including the use of illicit funds for terrorism. It
promotes international cooperation in investigations and prosecutions.
○ Extradition Treaties: Many countries have bilateral or multilateral extradition
treaties that enable the extradition of individuals involved in terrorism financing
across borders. These treaties streamline the legal process for bringing suspects
to justice.
○ Mutual Legal Assistance Treaties (MLATs): MLATs facilitate cooperation
between countries in obtaining evidence and providing legal assistance in
criminal matters, including those related to terrorism financing.
 ● Financial Action Task Force (FATF) Recommendations:

The Financial Action Task Force (FATF) is an intergovernmental organization that sets global
standards for combating money laundering and terrorism financing. Its recommendations,
known as the FATF 40 Recommendations, guide member states on effective measures to
address these threats. Key aspects include:

○ Risk-Based Approach: FATF recommends that member states adopt a

risk-based approach to assess and mitigate terrorism financing risks in their
financial sectors.
○ Customer Due Diligence (CDD): FATF's recommendations include
comprehensive CDD measures, such as identifying and verifying the identity of
customers, beneficial owners, and politically exposed persons (PEPs).
○ Suspicious Transaction Reporting: Member states are encouraged to
establish mechanisms for reporting suspicious financial transactions, known as
Suspicious Activity Reports (SARs), to financial intelligence units (FIUs).
○ National Strategies: FATF recommends that member states develop and
implement national strategies to combat money laundering and terrorism
financing. These strategies should involve coordination among relevant agencies.
○ International Cooperation: FATF promotes international cooperation and
information exchange among member states to combat cross-border terrorism
financing.
○ Assessments and Peer Reviews: FATF conducts mutual evaluations of
member states' compliance with its recommendations and provides technical
assistance to strengthen AML/CFT regimes.

Understanding and adhering to UNSC resolutions, international conventions, and FATF

recommendations is essential for member states in creating a robust legal framework to combat
the illicit funding of terrorism. These instruments facilitate global cooperation and coordination in
addressing this critical security challenge.

Sources of Illicit Funding

Terrorist organizations rely on various sources of illicit funding to sustain their operations and
carry out their activities. Understanding these sources is crucial for effectively countering
terrorism financing. Here are some key sources of illicit funding:

● State Sponsorship of Terrorism: State sponsorship of terrorism occurs when

governments provide financial, logistical, or ideological support to terrorist groups or
individuals. In the past, countries like Iran, Syria, and North Korea have been accused of
providing support to terrorist organizations, including funding, weapons, and safe
havens.
 ● Criminal Activities (e.g., Drug Trafficking, Arms Smuggling): Terrorist organizations
often engage in various criminal activities to generate funds. These activities may
include drug trafficking, arms smuggling, human trafficking, and contraband trade.
Groups like the Taliban in Afghanistan have profited from the opium trade, while
organizations like Hezbollah have been involved in smuggling operations.
● Extortion and Taxation in Conflict Zones: In areas under their control, terrorist
organizations may impose extortion or taxation on local populations, businesses, and
even humanitarian aid organizations to generate revenue. Extremist groups like ISIS
have levied taxes on communities in areas they controlled in Iraq and Syria, while the
Taliban in Afghanistan has extorted money from businesses.
● Donations and Fundraising: Terrorist organizations may raise funds through donations
and fundraising campaigns, often exploiting sympathizers or using front organizations to
solicit and collect money. Al-Qaeda and its affiliates have relied on donations from
sympathetic individuals and charities in the past. Online fundraising platforms and social
media may also be used.

Countering the illicit funding of terrorism requires a multi-faceted approach that includes
intelligence sharing, financial regulation, law enforcement efforts, and international cooperation.
Member states, in collaboration with international organizations, must work together to detect,
disrupt, and deter the flow of funds to terrorist organizations, thereby weakening their
capabilities and reducing their ability to carry out acts of violence.

5. Role of Financial Institutions

Financial institutions play a critical role in the global effort to combat the illicit funding of
terrorism. They are on the frontline of identifying and reporting suspicious financial activities that
may be linked to terrorist organizations. Here are key aspects of their role:

● Know Your Customer (KYC) and Anti-Money Laundering (AML) Regulations: KYC
regulations require financial institutions to verify and understand the identity of their
customers. This includes obtaining information about their customers' identity, financial
activities, and risk profiles.

AML regulations are designed to prevent and detect money laundering and terrorism
financing. Financial institutions must implement policies, procedures, and controls to
identify and report suspicious transactions and activities.

● Suspicious Activity Reports (SARs): Suspicious Activity Reports (SARs) are reports
filed by financial institutions to financial intelligence units (FIUs) or regulatory authorities
 when they suspect that a transaction or series of transactions may involve money
laundering or terrorism financing.

Financial institutions are required to have mechanisms in place to identify and report
suspicious activities. When they encounter transactions that raise suspicion, they file
SARs with the relevant authorities for further investigation.

● De-Risking and Its Consequences: De-risking is a phenomenon where financial

institutions decide to terminate or restrict banking relationships with certain customers,
business sectors, or regions due to concerns about the perceived high risk of money
laundering or terrorism financing.

While de-risking is a response to the regulatory pressure and risk mitigation efforts of
financial institutions, it can inadvertently hinder the detection of terrorism financing. It is
essential to strike a balance between regulatory compliance and ensuring that legitimate
financial services are accessible to all, including those in conflict zones or areas with
higher risk profiles.

Financial institutions must remain vigilant, adhere to AML and KYC regulations, report
suspicious activities promptly, and seek ways to mitigate risks without resorting to broad
de-risking measures. Collaborative efforts between financial institutions, regulators, and law
enforcement agencies are crucial in finding effective solutions to counter the illicit funding of
terrorism while ensuring financial inclusion and stability.

6. National Strategies and Practices

Each country adopts its strategies and practices to counter the illicit funding of terrorism, taking
into account its unique context, legal framework, and security challenges. These approaches
are essential in addressing terrorism financing effectively. Here are key aspects of national
strategies and some case studies of successful initiatives:

● Country-Specific Approaches to Countering Terrorist Financing:

○ Legislation and Regulation: Many countries enact specific legislation and
regulations that criminalize terrorism financing, money laundering, and related
activities. They establish financial intelligence units (FIUs) to collect, analyze, and
disseminate financial intelligence. For example:
○ Financial Institutions' Obligations: National strategies often place significant
responsibilities on financial institutions, requiring them to implement strict Know
Your Customer (KYC) and Anti-Money Laundering (AML) procedures. They are
also required to report suspicious transactions to authorities.
 ○ Interagency Cooperation: Effective cooperation and coordination among
various government agencies and law enforcement bodies are essential. This
includes intelligence sharing, joint investigations, and task forces.
○ Capacity Building: Many countries engage in capacity-building efforts to
enhance the capabilities of law enforcement agencies, FIUs, and financial
institutions.

● Case Studies of Successful Initiatives:

○ Saudi Arabia has implemented strict regulations and enhanced supervision to
prevent charities and NGOs from being exploited for terrorism financing. It
established a regulatory body, the Saudi Arabian Financial Unit (SAFIU), to
oversee and monitor the activities of these organizations effectively.
○ Australia has a robust legislative framework that criminalizes terrorism financing
and mandates strict reporting requirements for financial institutions. The
Australian Transaction Reports and Analysis Centre (AUSTRAC) plays a crucial
role in monitoring and reporting suspicious transactions.
○ Indonesia has undertaken initiatives to strengthen its AML/CFT regime and
improve its capacity to detect and prevent terrorism financing. It has also
established the Indonesian Financial Transaction Reports and Analysis Center
(INTRAC) to enhance financial intelligence sharing.
○ The United Arab Emirates has introduced regulations to combat money
laundering and terrorism financing, including enhanced KYC procedures and
reporting requirements. It has also implemented sanctions measures in line with
UN Security Council resolutions.
○ The USA PATRIOT Act (Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act) enhances
the legal framework for combatting terrorism financing in the United States. It
empowers financial institutions to report suspicious transactions and strengthens
law enforcement capabilities.
○ Singapore has a robust regulatory framework that includes stringent AML and
CFT (Countering the Financing of Terrorism) regulations. The Monetary Authority
of Singapore (MAS) oversees financial institutions to ensure compliance and
conducts regular risk assessments.
○ The United Kingdom established the Joint Money Laundering Intelligence
Taskforce (JMLIT), which brings together law enforcement agencies and financial
institutions to share information and intelligence on money laundering and
terrorism financing.

These case studies highlight the diversity of approaches taken by countries to counter terrorism
financing successfully. While there is no one-size-fits-all solution, effective strategies often
involve a combination of legal, regulatory, and law enforcement measures, as well as
international cooperation to address the transnational nature of terrorism financing.
 7. Challenges and Obstacles

Efforts to counter the illicit funding of terrorism face several challenges and obstacles that
require careful consideration and innovative solutions. These challenges can vary from region to
region and may evolve. Here are some key challenges and obstacles faced:

● Financing Through Non-Traditional Means: Terrorist organizations continually adapt

to countermeasures by seeking alternative funding sources and innovative methods.
This includes using cryptocurrencies, exploiting the hawala system, and engaging in
trade-based money laundering. The use of non-traditional financial channels and
technologies can make it challenging for authorities to detect and track terrorist
financing, as these methods often operate outside the regulated financial system.
● Fragmented Legal Frameworks: Legal frameworks related to countering the financing
of terrorism vary among countries, leading to gaps and inconsistencies in the global
response. Terrorist organizations exploit these disparities by operating in regions with
weaker regulations. Inconsistent legal frameworks hinder international cooperation and
the effective exchange of information. Harmonizing laws and regulations globally is
challenging due to differing legal systems and priorities.
● Balancing Security and Financial Inclusion: Striking the right balance between
security measures to combat terrorism financing and ensuring financial inclusion for
marginalized populations is complex. Overly stringent regulations can exclude vulnerable
communities from the formal financial sector. Excessive regulation may push financial
activities underground, making them harder to monitor and regulate. It can also hinder
economic development in regions affected by terrorism.
● Cross-Border Challenges: Terrorism financing is a transnational issue, and funds often
flow across borders. Coordinating efforts between countries to detect, investigate, and
prevent cross-border flows of illicit funds can be challenging. Differences in legal
systems, political considerations, and diplomatic challenges can hinder international
cooperation, allowing terrorist organizations to exploit jurisdictional gaps.
● Informal and Hawala Systems: Terrorist organizations frequently use informal financial
systems, such as the Hawala system, which rely on trust and personal connections.
These systems often operate outside of formal regulations. Regulating informal systems
without stifling legitimate economic activity is a complex task. Balancing the need to
prevent misuse with preserving cultural and economic practices can be challenging.
● Evolving Technological Landscape: Rapid technological advancements, including the
use of cryptocurrencies and online fundraising platforms, present new challenges for
detecting and tracking terrorist financing. Adapting regulations and law enforcement
capabilities to address these emerging technologies requires continuous efforts and
resources.
 ● Corruption and Complicity: Corruption within financial institutions, government
agencies, or law enforcement can facilitate terrorism financing. Complicit individuals or
entities may intentionally or unwittingly aid terrorist groups. Combating corruption and
ensuring the integrity of financial institutions and government agencies is an ongoing
challenge that requires effective governance and enforcement mechanisms.

Addressing these challenges and obstacles requires a multi-pronged approach involving

international cooperation, capacity building, technological innovation, and continuous adaptation
of legal and regulatory frameworks. Striking the right balance between security imperatives and
the promotion of financial inclusion is essential to creating effective and sustainable strategies to
counter the illicit funding of terrorism.

8. Global Cooperation and Information Sharing

Global cooperation and information sharing are essential components of the effort to counter the
illicit funding of terrorism effectively. To combat the transnational nature of terrorism financing,
countries and international organizations must work together closely. Here are the key aspects
of global cooperation and information sharing:

● Interagency Cooperation: It is critical for ensuring a holistic approach to countering

terrorism financing. Different agencies bring unique expertise and resources to the table,
and their collaboration can lead to more effective outcomes.
● Intelligence Sharing: Timely and accurate intelligence sharing is crucial for identifying
and tracking individuals, entities, and financial flows associated with terrorism financing.
It helps countries and agencies take proactive measures.
● Role of Regional Organizations (e.g., EU, ASEAN): Regional organizations provide a
platform for member states to collaborate, harmonize regulations, and share best
practices in countering terrorism financing. They promote a unified response to regional
threats.
● International Conventions and Agreements: These agreements set common
standards and obligations for member states, encouraging them to work together to
prevent and combat terrorism financing on a global scale.
● Financial Intelligence Units (FIUs): FIUs serve as the focal point for information
sharing between countries and are crucial for coordinating responses to suspicious
transactions and financial activities.
● International Organizations (e.g., UN, FATF): These organizations facilitate dialogue,
monitor compliance with international standards, and provide technical assistance to
member states. They promote consistent approaches to terrorism financing issues.
● Bilateral Agreements: Bilateral agreements enable countries to share intelligence and
resources more effectively, allowing for targeted actions against terrorism financing
networks.

Effective global cooperation and information sharing are essential for identifying and disrupting
the flow of funds to terrorist organizations. By fostering collaboration among countries,
agencies, and international organisations, member states can pool their resources and
expertise to address the transnational threat of terrorism financing comprehensively.

9. Preventing Radicalization and Recruitment

Preventing radicalization and recruitment to terrorist organizations is a critical aspect of

countering the illicit funding of terrorism. By addressing the root causes and pathways to
extremism, societies can reduce the pool of potential recruits and disrupt the flow of funds to
terrorist groups. Here are key strategies and approaches:

● Countering Extremist Ideologies: Extremist ideologies often play a pivotal role in

radicalization. By countering these ideologies, governments, civil society, and religious
leaders can reduce the number of individuals willing to support or join terrorist
organizations.

Strategies may include promoting moderate interpretations of religion, engaging in public

campaigns to counter extremist propaganda, and providing alternative narratives
through education and community outreach.

● Online Radicalization: The internet and social media platforms have become powerful
tools for radicalization and recruitment, allowing terrorists to reach a global audience.
Online recruitment and propaganda can facilitate the flow of funds to terrorist
organizations.

To counter online radicalization, governments and tech companies must collaborate to

monitor and remove extremist content, identify recruiters, and promote digital literacy
and critical thinking among internet users.

Communities can play a vital role in identifying individuals vulnerable to online

radicalization and providing support and interventions.

● Community-Based Prevention Programs: Community-based programs are effective

because they empower communities to take ownership of preventing radicalization. They
can address grievances, provide social support, and offer alternatives to individuals at
risk of radicalization.
● Education and Awareness: Education plays a crucial role in preventing radicalization.
Schools and educational institutions can promote critical thinking, tolerance, and
pluralism.

Media literacy programs can help individuals, especially young people, discern between
credible information and extremist propaganda online.
 Interfaith dialogue initiatives can promote understanding and tolerance among different
religious communities, reducing the appeal of extremist ideologies.

● Early Intervention and Rehabilitation: Identifying individuals who are at risk of

radicalization and providing early intervention and rehabilitation programs can help divert
them from the path of extremism.

These programs may include counselling, psychological support, and mentoring to

address the root causes of radicalization and reintegrate individuals into society.

● Collaboration and Information Sharing: Governments, law enforcement, and

communities must collaborate and share information to identify potential recruits and
disrupt radicalization networks.

Law enforcement agencies can build trust within communities through community
policing efforts, encouraging residents to report suspicious activities.

Preventing radicalization and recruitment to terrorist organizations is a long-term, multi-faceted

effort that requires the collaboration of governments, civil society, communities, and international
partners. By addressing the underlying drivers of extremism and providing alternatives to
radicalization, societies can reduce the pool of individuals willing to support or join terrorist
organizations, thereby disrupting their access to illicit funds and resources.

10. Humanitarian Assistance and Terrorism Financing

Balancing the provision of humanitarian aid with counter-terrorism measures is a complex and
delicate task. Humanitarian aid is essential for saving lives and alleviating suffering in
conflict-affected regions, but it must be carefully managed to prevent the diversion of funds to
terrorist organizations. Here are key considerations:

● Balancing Humanitarian Aid with Counter-Terrorism Measures: Humanitarian

organizations must navigate legal and regulatory frameworks that aim to prevent the
diversion of funds to terrorist groups while ensuring that aid reaches those in need.

Striking the right balance is crucial to avoid inadvertently undermining the provision of
humanitarian assistance, which can have dire consequences for vulnerable populations.
 ● Ensuring Aid Reaches Intended Recipients: Humanitarian aid can be at risk of
diversion when it enters conflict zones, where terrorist organizations may attempt to
seize or tax aid shipments.

To ensure aid reaches the intended recipients:

○ Humanitarian organizations may engage in negotiations and coordination with

conflict actors to gain access and guarantee the safe delivery of aid.
○ Monitoring mechanisms, including on-the-ground assessments and third-party
audits, can be implemented to track aid distribution.
○ Collaborative efforts between humanitarian agencies and law enforcement may
be necessary to identify and prevent aid diversion.

● Dialogue and Coordination: Dialogue between humanitarian organizations,

governments, and financial institutions is essential to clarify legal requirements, share
information, and ensure that aid is not unnecessarily delayed or obstructed.

Coordination mechanisms, such as the Counter-Terrorism Executive Directorate (CTED)

and Financial Action Task Force (FATF), work to facilitate dialogue and cooperation
between stakeholders.

● Humanitarian Exemptions: These exemptions recognize the unique nature of

humanitarian assistance and provide legal protections for aid organizations to operate in
challenging environments.
● Capacity Building and Training: Building the capacity of humanitarian organizations
and their staff to understand and comply with counter-terrorism measures is crucial to
navigating complex legal and regulatory environments effectively.
● Support for Conflict Resolution: Efforts to address the root causes of conflicts and
promote conflict resolution can help reduce the need for humanitarian aid in the first
place.

Balancing humanitarian aid with counter-terrorism measures is an ongoing process that requires
continuous adaptation and collaboration between governments, humanitarian organizations,
and financial institutions. It is essential to prioritize the safety and well-being of vulnerable
populations while maintaining vigilance against the potential diversion of funds to terrorist
organizations.
 11. Cybersecurity and Terrorism Financing

Cybersecurity plays a critical role in countering the illicit funding of terrorism in the digital age.
Terrorist organizations are increasingly using online platforms, cryptocurrencies, and
cyberattacks to raise funds and transfer money. Here are key aspects of cybersecurity in the
context of terrorism financing:

● Online Fundraising and Crowdfunding: Terrorist organizations often use online

platforms, social media, and crowdfunding websites to solicit and collect funds from
sympathizers around the world. Effective cybersecurity measures are necessary to
monitor, detect, and disrupt these online fundraising efforts.
● Cyberattacks on Financial Institutions: Financial institutions are targets of
cyberattacks by terrorist organizations seeking to steal funds, disrupt financial systems,
or compromise customer data. Cybersecurity measures are essential to protect the
integrity of the financial sector and prevent unauthorized access to funds.
● Regulation of Cryptocurrencies: Cryptocurrencies provide a relatively anonymous and
decentralized means of transferring funds, making them attractive to terrorist
organizations for fundraising and money laundering. Regulatory frameworks for
cryptocurrencies are crucial to ensure transparency and accountability in the digital
financial landscape.
● Threat Intelligence Sharing: Governments, financial institutions, and cybersecurity
agencies must share threat intelligence to identify emerging cyber threats and trends in
terrorism financing. Public-private partnerships and information-sharing platforms
facilitate collaboration and timely responses to cybersecurity threats.
● Education and Training: Providing education and training to financial sector
employees, law enforcement, and the public on cybersecurity best practices can help
prevent cyberattacks and the illicit funding of terrorism.

Cybersecurity measures should be integrated into broader strategies for countering the illicit
funding of terrorism. By safeguarding digital financial systems, monitoring online activities, and
regulating emerging technologies like cryptocurrencies, governments and financial institutions
can disrupt the flow of funds to terrorist organizations and protect the integrity of the financial
sector.
 12. Monitoring and Reporting

Monitoring and reporting play a crucial role in countering the illicit funding of terrorism. They
involve the active surveillance of financial transactions, and suspicious activities, and the
reporting of such information to relevant authorities. Here are key aspects of monitoring and
reporting:

● Role of Intelligence Agencies: Intelligence agencies are instrumental in gathering,

analyzing, and disseminating information related to terrorism financing. Their role
includes:
○ Intelligence agencies collect financial data, open-source information, and
classified intelligence to identify potential threats and illicit financial flows.
○ They analyze financial patterns, transactions, and connections to uncover
networks involved in terrorism financing.
○ Intelligence agencies share their findings with relevant law enforcement
agencies, financial intelligence units (FIUs), and international partners to initiate
investigations and take preventive measures.

● Reporting Mechanisms for Suspicious Financial Activities: Financial institutions play

a critical role in identifying and reporting suspicious transactions that may be related to
terrorism financing. FIUs are responsible for receiving, analyzing, and disseminating
reports of suspicious financial activities from financial institutions and other sources.
Whistleblower programs and hotlines allow individuals to report suspicious activities
anonymously and without fear of retaliation.
● Whistleblower Protection: Whistleblower protection is essential to encourage
individuals with information about terrorism financing to come forward without fear of
reprisal.
● Cross-Border Reporting: Terrorism financing often involves cross-border financial
transactions, requiring international cooperation in reporting and investigating suspicious
activities. International agreements and mechanisms, such as the Egmont Group,
facilitate the exchange of financial intelligence between FIUs in different countries.
● Public Awareness and Education: Educating the public about the importance of
reporting suspicious financial activities can lead to increased vigilance and reporting.
Public awareness campaigns can inform individuals about the signs of suspicious
financial activities and the mechanisms for reporting.

Monitoring and reporting are essential tools in identifying and disrupting terrorism financing.
They rely on the collaborative efforts of financial institutions, intelligence agencies, FIUs, and
individuals who play a vital role in detecting and reporting suspicious financial transactions.
Ensuring whistleblower protection is critical to encouraging individuals to come forward with
valuable information while safeguarding their interests.
 13. Measuring Success and Accountability

Measuring the success of counter-terrorism financing efforts is crucial to assess the

effectiveness of policies and initiatives aimed at disrupting the flow of funds to terrorist
organizations. Accountability mechanisms, including evaluation bodies and audits, play a vital
role in ensuring that states are compliant with international standards and obligations. Here are
key aspects of measuring success and accountability:

● Metrics for Evaluating Effectiveness: Metrics are quantitative and qualitative

indicators used to assess the impact and effectiveness of counter-terrorism financing
efforts. They help in understanding progress and identifying areas that require
improvement. Measuring the degree to which states and financial institutions comply
with international regulations and recommendations, such as those by the Financial
Action Task Force (FATF).

● Role of Evaluation Bodies and Audits: Independent evaluation bodies or

mechanisms, such as financial intelligence units (FIUs) and audit agencies, play a
crucial role in assessing the effectiveness of counter-terrorism financing efforts. Financial
audits conducted by government audit agencies or private firms can review the financial
operations of government agencies, financial institutions, and non-profit organizations to
identify vulnerabilities to terrorism financing.
● Holding States Accountable for Compliance: States are held accountable for their
compliance with international standards and obligations related to counter-terrorism
financing, as established by organizations like the United Nations (UN) and the Financial
Action Task Force (FATF).
● Reporting and Transparency: States are often required to submit reports detailing their
efforts to combat terrorism financing. International organizations and peer countries
review these reports. Transparent reporting ensures that states are held accountable for
their actions and progress in countering terrorism financing.
● Continuous Improvement: Success measurement and accountability are iterative
processes. Regular evaluations, audits, and reviews help identify gaps and areas for
improvement, leading to more effective counter-terrorism financing strategies.

Measuring success and accountability in counter-terrorism financing requires a combination of

quantitative and qualitative metrics, independent evaluation bodies, audits, and compliance with
international standards. Holding states accountable for their efforts is essential to maintaining
the integrity of the global financial system and preventing the illicit funding of terrorism.
 14. Future Trends and Emerging Issues in Countering Illicit
Funding of Terrorism

Anticipating and addressing future trends and emerging issues in the field of countering illicit
funding of terrorism is crucial to staying ahead of evolving tactics and technologies used by
terrorist organizations. Here are key considerations:

● Evolving Terrorist Financing Methods: Terrorist organizations continually adapt to

financial countermeasures. They may diversify funding sources, exploit emerging
technologies, or employ new tactics. The use of cryptocurrencies, such as Bitcoin, for
fundraising and transferring funds may increase due to their anonymity and global reach.

Terrorist organizations may increasingly rely on non-financial support, such as in-kind

contributions or stolen goods, to reduce their reliance on traditional financial systems.

Smuggling of goods, including cultural artefacts, precious metals, and wildlife, may
become more prominent as an alternative source of revenue.

● Technological Advancements and Their Impact: While cryptocurrencies can be

exploited for illicit financing, blockchain technology also offers opportunities for
transparent and secure financial tracking.

Advanced data analytics and artificial intelligence can assist in identifying patterns and
anomalies in financial transactions, aiding in the detection of suspicious activities.

Secure information-sharing platforms and technologies can facilitate international

cooperation in countering terrorism financing while protecting sensitive data.

● Future Challenges in Countering Illicit Funding: As financial systems become

increasingly decentralized and reliant on virtual assets, monitoring and regulating them
pose significant challenges.

Balancing the need for financial transparency with individual privacy rights remains a
complex issue, especially in financial investigations.

The globalization of financial systems and the transnational nature of terrorist financing
require enhanced international cooperation and coordination.

Terrorist organizations are likely to adapt quickly to new countermeasures, necessitating

ongoing innovation in countering illicit funding.

Fragmented legal frameworks and differing national priorities can hinder global efforts to
combat terrorism financing effectively.
 ● Public-Private Collaboration: Enhanced cooperation between governments, financial
institutions, tech companies, and civil society organizations is essential to address
emerging challenges. Public-private partnerships can facilitate information sharing,
innovation, and the development of effective counter-terrorism financing strategies.

● Capacity Building and Training: Ongoing capacity building and training programs for
law enforcement, financial institutions, and other stakeholders are vital to ensure they
are equipped to respond to evolving threats and challenges.
● Research and Innovation: Investment in research and innovation, including the
development of advanced analytics and detection technologies, can help stay ahead of
terrorists' financing methods.
● Legal and Regulatory Adaptations: Governments and international organizations must
continuously adapt legal and regulatory frameworks to address emerging issues, such
as cryptocurrencies and decentralized financial systems.

Addressing these future trends and emerging issues requires a proactive, adaptive, and
collaborative approach. Staying ahead of evolving terrorist financing methods and technological
advancements is essential to effectively counter the illicit funding of terrorism and protect global
security.

15. Proposed Solutions and Recommendations

The Executive Board of DISEC aims to make the committee proceedings as productive and
intellectually stimulating as possible for all attending delegates. To ensure that such a goal does
culminate to its completion during the proceedings, the Chair has decided to propose the very
hints of the beginnings of a motion that can be of use and reference during research and
statement proposals for moderated caucus appeals.

The following statements are mere suggestions and are to be taken at face value. They are not
to limit the scope of research done by the delegates. The Executive Board awards creativity in
the formulation of moderated caucus topics that add to the conversation rather than detract from
it.

The following are concepts/statements that delegates can research and propose during
committee sessions:

● Dismantling Terrorist Networks

● Confiscation of Assets
 ● Intelligence Sharing Platforms
● Private-Public Partnerships
● Interpol and Europol Cooperation
● Terrorist Recruitment and Financing Online
● Disaster Relief and Humanitarian Aid
● Enhancing Border Security
● Preventing Cultural Heritage Theft
● De-Radicalization Programs
● Financial Intelligence Units
● Regional Cooperation Initiatives
● Protection of Whistleblowers
● Security at Transportation Hubs
● Capacity Building in Cybersecurity

Through the aforementioned Concepts and propped questions, we, the Executive Board, hope
that the Delegates see this as a railroad of sorts and not merely as a means to an end.

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