February 4, 2016
Radical Pakistani madarsas are engaged in massive trade-based money laundering to fund jihadist groups, eminent experts have told American lawmakers who expressed concerns over terror financing.
Concerned over the practice, Congressman Stephen F Lynch said trade-based money laundering (TBML) involves using trade and products or commodities for value in order to divert and obscure the true nature of the illicit wealth.
“Trade-based money laundering is related to terrorist finance,” John Cassara, former US Intelligence Officer and Treasury Special Agent, told members of the House Financial Services Committee during a Congressional hearing.
Congressman Robert Pittenger, said criminal enterprises have relied on this method of illicit financing for years.
However, many believe that this is an emerging technique now being used by terrorist groups to finance their violent and oppressive operations, he said.
“Congress should prioritise efforts to stop the flow of money and resources to terrorist organisations. We must ensure that organisations like the financial crimes enforcement network receive their resources and intelligence necessary to combat trade-based money laundering and other methods of illicit financing,” he said.