NAT report

Terrorist financing from Norway

The five known sources of financing:

1. From Islamic organisations and individuals
2. From Drug trafficking, human trafficking and other illegal activities
3. From Norwegian Government
4. From Norwegian Businesses
5. LTTE organisations operating in Norway

1. From Islamic organisations and individuals

There have been several collection of funds in Islamic organisations for terror acts. The arrange meetings and ask the participants for funding for their terrorist activities. The funds are collected in cash, gold or jewellery and transferred by couriers to the terrorist organisation.  Islamic League used this method when they collected funds in Oslo for suicide attacks against Israeli civilians. Similar methods has been seen in the European Union, where cash is used to buy stolen diamonds and then transferred by courier out of the country.  

2. From Drug trafficking, human trafficking and other illegal activities

Nearly all of the profits in the criminal activities related to illegal drugs goes to terrorist organisations like PKK, UCK, Ansar al-Islam and Al-Qaeda. With the exemption of the lowest levels of drugdealers, all participants are linked to the terrorist organisation. The lowest levels of drug dealers are  usually paid in drugs so all the cash flow goes to the terrorist organisation, their only expenses is to pay for a "store front" and wages for it's members.

The profits in the drugs trafficking is huge. Norway has more than 15.000 drug addicts and they generate 700 million USD in revenues every year for the terrorist organisations. The drug revenues in Norway is enough to finance seventy terrorist organisations of the size of Al-Qaeda.  (According to the US Treasury Special council David Aufhauser, the Al-Qaeda annual budget in 2003 is between 5-10 million USD).

The funds transferred back to the terrorist organisations is done by couriers or camouflaged in pro-forma prices on legal imports and business deals.

3. From Norwegian Government

Norway contributes with substantial amounts of foreign aid to countries harbouring terrorist organisations or is actively involved in Terrorism. Example Norway gives approximately 20-25 million USD to Palestine every year. In addition they give extra ordinary aid to the Palestinian authorities. In 2004, until march, they have given an additional 50 million USD.  Most of the funds goes to the Palestinian authorities who is famous for it's corruption problem. How many of the Norwegian funds transferred to Palestine has ended up with al-Aqsa, Hamas  and other terrorist groups nobody knows (or want to know). Norway have also funded printing of anti-Semitic schoolbooks to children promoting Jihad and terrorist acts. 

The Norwegian government funds are usually wired transferred through the banking system, but we have also seen that embassy personnel and aid-workers has been used as couriers for smaller amounts.  

4. From Norwegian Businesses

Both private and State owned businesses are operating in countries known for harbouring terrorism. Substantial amounts has been paid in bribes to officials and individuals that has been impossible to trace.  Most famous is the Statoil bribery scandal in Iran.

5. LTTE collects funds in Norway

Through several "storefront" organisations the LTTE is collecting funds from the Tamil population living in Norway. Some of the collecting is done by extortion tactics, with LTTE representatives coming to their homes asking for donations.

If you add all of the terrorist financing from Norway, it could finance more than one hundred terrorist organisations of the size of al-Qaeda. 

Most terrorist organisations uses the fund raised in Norway to purchase of weapons for use in their home countries. This strategy might change to low cost operations, as the Madrid attack, since the terrorist were able to change the outcome of the Spanish election.

Money laundering

Even though terrorist/narcotic organisations have become more careful and skilled in their transfer of funds across the borders, some still use the banking system. Often camouflaged through real business deals. This make it difficult to detect and to prosecute.  The reports on money laundering to the Financial Crime Police "Økokrim" has exploded.

Money is also laundered through "legitimate" store fronts as for example restaurants and groceries. These also function as employers for other organisation members.

Total money laundering reports to "Økokrim":

Only eleven cases related to  money laundering of narcotics ended up in the courts in 2002.

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