Terrorism funding: how money flows and how to spot it

Terrorist groups need cash to plan, recruit and carry out attacks. That makes understanding how funds move a practical way to reduce harm. This page explains common channels, red flags to watch for, and simple steps citizens, journalists and charities can take when they suspect abuse.

Money can travel in plain sight. Cash couriers, charities, small businesses, trade misinvoicing, natural-resource sales, kidnapping ransoms and remittances all get used. In parts of Africa, informal transfer systems like hawala and cross-border cash networks are common and can be exploited because they leave fewer paper trails. Newer methods include cryptocurrencies and online crowdfunding, which can hide senders and receivers unless platforms cooperate with investigators.

Common red flags to watch for

Look for unusual patterns that don’t match normal behaviour. Examples include: sudden large donations to new or unregistered charities; repeated small transfers that add up; donors who insist on cash or unusual routes; charities with vague project details and no financial reports; trade invoices that don’t match cargo; and withdrawals that don’t match a person’s income. For journalists, rapid spikes in online donations, anonymous crowdfunding pages, or shell companies linked to conflict zones are worth checking.

Banks and payment platforms also flag odd behaviour: structuring transfers just below reporting thresholds, frequent transfers to high-risk countries, or accounts that show quick in-and-out movements with no clear business reason. If a person or group refuses standard ID checks or questions why you are asking about finances, treat that as a warning sign.

What you can do if you suspect funding abuse

If you see something, report it to the right place. Local police, your bank’s fraud team, or the Financial Intelligence Unit (FIU) in your country can take action. Banks can freeze suspicious transfers and file Suspicious Transaction Reports. For charities, check registration numbers, annual reports and the names of trustees. Reputable NGOs publish budgets and project updates — if a group is secretive, don’t donate.

Journalists should verify donation pages, track payment processors, and ask for receipts and proof of project delivery. Use open-source tools to trace domain registrations and social accounts. Protect sources: keep copies of evidence, use secure messaging, and be careful with documents that could expose you or informants to harm.

Policymakers and businesses also play a role. Enforcing anti-money-laundering (AML) and counter-financing-of-terrorism (CFT) rules, improving cross-border cooperation, and requiring transparency for charities and small businesses reduce the spaces where abuse can hide. For readers, simple checks — asking for registration, confirming beneficiary names, and avoiding cash-only transfers — make a difference.

If you need to act now: save transaction details, screenshots and names, then contact your bank and local authorities. Reporting doesn’t mean you must prove guilt — it starts an investigation that can stop money before it does harm.