The United States has sought to bar the LTTE Tamil Tigers from acquiring advanced weaponry in North America, for use in its violent military and terrorist campaigns against the Sri Lankan government. See Retired Indonesian general pleads guilty in US to aiding LTTE Tamil Tigers; World-Check, 25 February, 2007; Sri Lankan terrorist group tried to buy missiles, bribe US State Department officials; World-Check 22 August, 2006.

With respect to terrorist financing  issues, compliance officers in North America should be aware that LTTE agents extort large sums from expatriate Tamils residing in the US and Canada* by threatening the safety of their relatives and property located in areas of Sri Lanka under LTTE control. What to look for in your Tamil clients as red flags that may indicate they are acting under duress:

• Bank clients who are ethnic Tamils seeking to withdraw large amounts of their savings in cash, when they have no history of this activity.
• Customers who are accompanied to the bank by individuals not known to you to be relatives or business associates.
• Tamil bank clients who are nervous, agitated, or in a hurry to conclude their business, and whose behaviour is unusual. 
• Clients who write large cheques to what appear to be Sri Lankan charities; it is suggested that you confirm that they are legitimate charities, and not LTTE fronts; perform due diligence; World-Check has profiled the most active bogus LTTE charities. See When terrorists cash in on disaster, World-Check 27 August, 2006; LTTE bogus "charities" stealing Tsunami relief, World-Check 20 November, 2006.
• Clients who ask that their funds be converted to another currency.
• Clients who appear to be periodically glancing up, looking outside the office at individuals who may be waiting for them. 
• Clients who make cash withdrawals during the same week that other Tamil clients are also requesting cash. 

Whilst there may be legitimate business reasons for cash withdrawals, such as major purchases, overseas trips, pay close attention to the non-verbals, the body language of the client, during the conduct of the transaction. Do they appear to be under stress ? If you have any Tamil employees, they may be able to assist you in identifying any suspicious transactions.   

Look for US and Canadian law enforcement to continue to aggressively monitor LTTE activities, attempting to keep weapons and cash out of the hands of their agents. Negative press and reputation damage could result from your financial institution being named in one of those high-profile cases, so train your staff to be sensitive to the possibility that LTTE terrorist financing or arms trafficking payments could pass through your bank. Be prepared.                                                                      _______________________________________________________________________________________                                                                                                                                                                       * Canada reportedly will not accept present or former LTTE members as immigrants.