Lashkar-e-Tayyiba’s siege on Mumbai in November 2008 signaled a broadening of its target set of Indian nationals to also include Westerners and Jewish centres. Recent developments indicate that the targeting shift was not an anomaly.

Successful adaptation to change is integral to the longevity of any organization. Terrorist groups are no different. While its fortunes have waxed and waned over the years, Al-Qa’ida has remained resilient in the face of a formidable onslaught to its finances, operations and cadre globally. An important question is how and what can be done about it? This article argues that the organisation’s evolution into a decentralised, ideologically-structured network has outpaced the countering the financing of terrorism (CFT) regimes put in place after 9/11. For businesses that want to do all they can to mitigate regulatory, reputation and legal risk, the best strategy then is to follow FATF’s recommendation to target broad organisational infrastructures of associated groups and affiliated cells that go beyond slow-moving sanctions lists.

The terrorist supply chain comprises two primary components: money and recruits. For security, intelligence and compliance professionals with counter-terrorism responsibilities, understanding the geographic dimension of these components is mission critical. This month’s edition of Expert Talk is a geospatial model of the al-Qa’ida-linked al-Shabaab movement’s recruiting and financing methods. See September's Expert Talk for further information on the al-Shabaab terrorist group.

In recent months the US-Pakistan offensive on al-Qa'ida and Taliban in the tribal areas of Pakistan has intensified significantly. With the future of that terrorist sanctuary now in question, Waziristan in the Federally Administered Tribal Areas of Pakistan, has been diminished in many would-be jihardists eyes as the premier destination for those seeking to join al-Qa'ida.  The dimming of Waziristan has coincided with the elevation of Somalia as an alternative destination and hub for global jihad.

In response to hardened security measures after 9/11 in airports and embassies, terrorists have adapted by intensifying their focus on soft targets; namely, the hospitality industry. There have been myriad plots and at least 11 successful attacks on hotels from New York City to Mumbai since 9/11. Not only are hotels relatively easier to hit, they are also attractive targets due to their iconic landmark status. In addition, western businessmen and diplomats tend to meet and work there. While preventive measures are inherently limited – terrorists know when and where they will strike, counterterrorism specialists do not – there are still obvious gaps that need to be addressed to make hotels safer.

To combat the growing violence associated with Mexican narcotics cartels, governments are taking more aggressive measures to stem the flow of illicit money. Increased policing on the border has resulted in a clampdown on bulk cash smuggling, the favourite way to move narcotics money from the US to Mexico. This may influence narcotics cartels to use more sophisticated money laundering tactics that involve the formal financial system. This development coincides with stricter legislation pertaining to anti-money laundering laws and regulatory oversight that targets narcotics syndicates. Therefore banks and other financial institutions should anticipate greater government scrutiny on this issue and ensure that their compliance programs and systems are in place to adequately manage the impending risk.

The official demise of the Liberation Tigers of Tamil Eelam last month appeared strangely sudden despite its apparent projected inevitability. The LTTE was widely regarded as one of the most ruthless and professional terrorist entities in the world. Banned in 32 countries, the LTTE at its zenith had de facto control over large parts of Sri Lanka. The Tamil Tigers appeared so inextricably linked with Sri Lanka’s past and future that this apparent crumbling of the giant has opened up a wide range of hitherto unexplored opportunities for the Sri Lankan state in general and the global Tamil community in particular.

Despite being implicated for his involvement by the three convicted Bali bombers prior to their execution,
Abu Bakar Bashir, the spiritual head of Jemaa Islamiyah, is currently a free man in Indonesia. As the most populous Muslim nation in the world; the vast majority of Indonesians are secular, peace loving citizens. However the volatile extremist minority of a largely secular state, championed by “spiritual leaders” such as Bashir, raises the prospect of extremism translating into terrorism on a growing scale.

In the wake of the 9/11 terrorist attacks on the US, South Asia attracted world attention due to the extent and
spread of terrorist networks operating there. Besides the myriad indigenous groups present, the region is home to Al-Qaeda, currently located inside Pakistan’s autonomous tribal areas. The terrorist threats emanating from this region are of local, regional and global concern.

Many financial institutions are currently treading water in an ocean of economic uncertainty. They are having enough trouble staying afloat without having to worry about riptides, or worse yet undercurrents. Regrettably, the waves hitting the banks attempting to stay afloat are growing larger and more violent making it more difficult for those institutions to tread water. Consequently, the resulting riptides and undercurrents are gaining momentum and becoming extremely dangerous.  An insightful article by Dennis M Lormel.