First U.S. Defense Department Study on Disrupting Terrorist Financing Released

By Andrew Cochran

The U.S. Army Command and General Staff College has released to the public a study titled, "Disrupting Threat Finances: Utilization of Financial Information to Disrupt Terrorist Organizations in the Twenty-First Century" (166-page Acrobat document). To my knowledge, it's the first dedicated and publicly available monograph or study of terrorist financing by the Defense Department, which indicates the increased concern by DoD and the importance of integrating the discipline within counterinsurgency doctrine. I was interviewed for the study by Major Wesley J.L. Anderson, the author, as were Matthew Levitt and Jeffrey Breinholt. We appreciate his willingness to interview us and appreciate his outstanding effort as reflected in this report.

This study will be reviewed and commented upon in depth in the days to come. The most important finding, in my opinion, is that the U.S. Government still lacks a single organization in charge of coordinating and directing anti-terrorist financing efforts, with authority over budget and manpower. "To be successful the U.S. must address the problem of terrorism under the guidance and leadership of one overarching organization that has the mandate and funding authority to direct all activities’ and agencies’ actions against terrorist organizations" (page 56). That finding is not a criticism of the NSC's or U.S. Treasury's fine efforts to halt terrorist financing, but a recognition of their limited authority within the Executive Branch (i.e., they cannot directly impact the FBI's investigative agenda). Here are the summary of the findings and conclusion from the report:

Findings: This monograph demonstrates that the disruption of terrorist financing as part of an integrated and holistic approach is an effective way to enhance U.S. security, disrupt terrorist operations, and mitigate terrorist effects on U.S. strategic interests. In addition, this monograph confirms that the effects of terrorist organizations on U.S. strategic interests can be disrupted and mitigated by: (1) giving an existing organization the mandate and funding authority to coordinate and direct the actions of all USG departments and agencies (without stifling their flexibility or resources) against terrorist organizations; (2) enhancing multilateral cooperation and information sharing with IA, private sector, allies, and partner nations; (3) utilizing commercial off the shelf (COTS) technology to create an integrated communications network between the IA, private sector, allies, and partner nations; (4) establishing a DoD policy and clear way ahead; and (5) adding to and modifying current U.S. laws, federal regulations, policies, and international conventions with the knowledge that additional modifications will always be needed to facilitate this very adaptive and changing environment.

Significance: This monograph demonstrates that the USG can successfully constrict terrorist operating environments, making it harder for terrorists to conduct operational, logistical, and financial activities through the less costly and non-kinetic means of threat finance exploitation.

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