Deck 3: Terrorist Financing and Money Laundering

Question 1

To finance its operations,the IRA developed an organized crime network known as a:

A)mafia discovery
B)laundering discovery
C)Capone discovery
D)Dillinger discovery

Answer 1

C

Question 2

All countries have prospered through globalization.

Answer 2

False

Question 3

Terrorist operations are extremely costly.

Answer 3

False

Question 4

Putting criminal proceeds in the legitimate financial system is known as:

A)placement
B)layering
C)integration
D)exchange

Question 5

It is hard to trace some money because it is hidden in underground networks.

Question 6

Hezbollah and Hamas use the Latin American drug trade to raise funds.

Question 7

When terrorists raise money,they usually commit the crime after they get the funds.

Question 8

Economic support for terrorism always involves money.

Question 9

Presenting illegally gained money in the formal economic system as if it were the result of a legal activity is known as:

A)placement
B)layering
C)integration
D)exchange

Question 10

It is popularly believed that the term money laundering first appeared in the 1920s.

Question 11

Terrorists often move in the same circles as organized criminals,smugglers,and drug dealers.

Question 12

Organized crime and terrorism are identical.

Question 13

Terrorist financing refers to the methods terrorist groups use to raise the material needed to support operations and organizations.

Question 14

Which of the following is not a way that money is laundered?

A)placement
B)layering
C)integration
D)exchange

Question 15

Many international terrorist groups move money through an ancient trading network called the hawala system.

Question 16

When terrorists move goods,people,weapons,money,or contraband they must do so in underground networks.

Question 17

Globalization has facilitated a global underground economy - providing for illegal trade routes for drugs,arms smugglers,contraband dealers,and human traffickers.

Question 18

Many scholars agree that the narcotics trade is a primary source of money for terrorist organizations.

Question 19

The first talk of anti-money laundering statutes began to appear in the 1970s,and it was finally outlawed in 1986.

Question 20

Concealing the source of illegal income in confusing,sometimes multiple financial actions is known as:

A)placement
B)layering
C)integration
D)exchange

Question 21

Which of the following terrorist organizations ran cigarettes from North Carolina to Michigan and used some of the profits to fund operations in Lebanon?

A)Hezbollah
B)Hamas
C)Abu Nidal
D)al Qaeda

Question 22

Some analysts believe the primary reason that officials do not understand the financing process is that they lack a:

A)profile
B)theoretical framework
C)psychological framework
D)social framework

Question 23

After its long experience with the Irish Republican Army,was one of the first nations to address terrorist financing.

A)The United Kingdom
B)Ireland
C)The United States
D)Italy

Question 24

According to David Carter,terrorists use for logistics,including financing activities.

A)existing criminal networks
B)newly created criminal networks
C)charities
D)banks

Question 25

Which of the following terrorist organizations is most likely to use the black market peso exchange?

A)FARC
B)PKK
C)IRA
D)al Qaeda

Question 26

Which of the following is not a way terrorists finance their organization and operations?

A)murder
B)petty theft
C)robbery
D)kidnapping

Question 27

Which of the following refers to the methods used to fund terrorist groups or operations?

A)Money laundering
B)Terrorist financing
C)Narcoterrorism
D)Terrorist funding

Question 28

Which of the following activities do terrorist organizations usually not engage in to fund their operations?

A)Smuggling
B)Fraud schemes
C)Charitable donations
D)Money laundering

Question 29

At the urging of the United States and the United Kingdom,the UN General Assembly adopted the International Convention for the in December,1999.

A)Financial Action Task Force on Money Laundering
B)Suppression of the Financing of Terrorism
C)Peaceful End of Financing Terrorism
D)United Anti-Financing and Money Laundering Agenda

Question 30

According to Freeman,which of the following is not needed in an economic theory that accounts for the financing of terrorist organizations and operations?

A)Need for money
B)Amount of money needed
C)System of credit
D)Source of income

Question 31

By 2012,the Islamic Maghreb had become the primary source of income for al Qaeda by smuggling:

A)cocaine
B)opium
C)tobacco
D)alcohol

Question 32

Which of the following is an investigative tool used to track money used in illegal activities?

A)Criminological accounting
B)Investigativeaccounting
C)Forensic accounting
D)Layering accounting

Question 33

The was a resolution passed by the United Nations in 1990 (and strengthened from 2001-2006)urging member states to adopt measures to hamper money laundering.

A)Financial Action Task Force on Money Laundering
B)Suppression of the Financing of Terrorism
C)Peaceful End of Financing Terrorism
D)United Anti-Financing and Money Laundering Agenda

Question 34

Counterfeiting and fraud are common weapons of the .

A)Asian extremists
B)South American extremists
C)American extremist right
D)Eastern Europe extremists

Question 35

are the most frequent legal activities used by terrorists to fund their activities.

A)For-profit education facilities
B)Stock trading
C)Charities and business operations
D)Real estate investments

Question 36

Carlos Marighella argued that "urban warfare" begins with a campaign of .

A)expropriation
B)initiation
C)money laundering
D)investment

Question 37

The Economist reports that terrorism is in terms of the causalities and destruction terrorist events cause.

A)cost-neutral
B)cost-loss
C)cost-effective
D)cost-control

Question 38

Which of the following is the process of converting the proceeds of crime into assets that can be used in the formal economy?

A)Layering
B)Placement
C)Money Laundering
D)Integration

Question 39

Which of the following is not an example of layering money?

A)converting cash into a money order
B)putting the money in a checking account
C)buying prepaid charge cards
D)wiring cash to a financer

Question 40

According to Marighella,is the term used for armed robbery.

A)excavation
B)extermination
C)elimination
D)expropriation

Question 41

Which of the following is based in the belief that international trade barriers should be removed so that commerce and industry can develop in an international free market?

A)The new economy
B)Globalization
C)Financial terrorism
D)Global industry

Question 42

Which of the following theories suggests that counterterrorism policies should be aimed at providing the world's people with economic stability,opportunity,and participation in the mainstream economy?

A)Microeconomic theory
B)Globalization theory
C)Macroeconomic theory
D)Global economic theory

Question 43

Which of the following is NOT an economic policy to counter terrorism?

A)Supporting states in threat of failure
B)Increasing loans to Third World Nations
C)Providing opportunities for people to participate/benefit from economic systems
D)Eliminating underground economic networks

Question 44

The aspects of terrorism have had a great influence upon the changing nature of the international economy.

A)religious
B)financial
C)political
D)social

Question 45

An area outside of a government's control is known as a(n):

A)anti-state
B)failed state
C)shell state
D)anarchic state

Question 46

According to David Kaplan,are responsible for the bulk of terrorist financing.

A)charities
B)drugs
C)crimes
D)all of the above

Question 47

According to Napoleoni,modern terrorism is an international force supported by groups in that continually change both their organizational structures and political goals to maintain income from an international underground economy.

A)anti-states
B)failed states
C)shell states
D)anarchic states

Question 48

A system of exchanging money based on trust relationships between money dealers is called .

A)money laundering
B)the hawala system
C)charitable fronts
D)expropriation

Question 49

According to Global Witness,al Qaeda spent 10 years moving into unregulated trading in West Africa.

A)prostitution
B)diamond
C)drug
D)weapons

Question 50

According to Loretta Napoleoni,is a term that describes the evolution of terrorist financing from the beginning strategies of the cold war to the present.

A)the new economy of terrorism
B)globalization
C)financial terrorism
D)the global industry

Question 51

According to Mario Ferrero,what do modern radical Islamic groups use as a means of providing economic stability?

A)Violent activity
B)Unregulated diamond trading
C)Drug trading
D)Document fraud

Question 52

________________ is a term describing a political situation where a government nominally controls its own state but where large regions are either anarchic or under the control of others.

A)Globalization
B)Shell state
C)Weak state
D)Failed state

Question 53

Which of the following terrorist organizations changed the structure of terrorist financing by trying to gain control of the economy?

A)FARC
B)ETA
C)IRA
D)PKK

Question 54

The new economy of terrorism is a term used by Napoleoni to describe the evolution of terrorist financing from the beginning strategies of the to the present.

A)Cold War
B)French Revolution
C)Civil War
D)Vietnam War

Question 55

Both terrorists and criminals take advantage of political instability in regions like the in South America.

A)Brazilian Northeast
B)Triborder Region
C)Trifecta Region
D)Chilean countryside

Question 56

What country is the primary source of heroin in Europe?

A)Afghanistan
B)Iraq
C)Saudi Arabia
D)China

Question 57

Which of the following is NOT an advantage of the Hawala system?

A)A record of the money is kept
B)Money crosses international borders with ease
C)It is based on trust
D)No tax records exist

Question 58

The political economy of terrorism involves groups that have the ability to act autonomously in and states.

A)legitimate,illegitimate
B)active,inactive
C)shell,failed
D)passive,active

Question 59

What is the term used to refer to groups using either terrorist tactics to support drug operations or drug-trade profits to finance terrorism?

A)Narcoterrorism
B)Narcotactics
C)Narcotic terror
D)Narcotrafficking

Question 60

Which of the following countries is NOT a member of the Triborder Region of Latin America?

A)Brazil
B)Paraguay
C)Chile
D)Argentina

Question 61

Opponents of narcoterrorism argue that governments use the term to increase their own power by defining as terrorists.

A)common criminals
B)Muslims
C)Mexicans
D)diplomats

Question 62

Why does this situation present special challenges for counterterrorism efforts?

A)There is no way to trace the flow of funds
B)The system gives terrorists unlimited funds
C)Governments are not able to impart taxes on the transactions
D)No challenge exists - such transactions are common in international banking

Question 63

The ____________________________ is one method used to transfer money from one person to another without leaving a record of the transaction.

Question 64

According to Rachel Ehrenfeld,terrorists are involved in the international production and distribution of:

A)tobacco
B)counterfeit goods
C)drugs
D)textiles

Question 65

is a term used by James Adams to explain the Irish Republican Army's entry into organized crime.

Question 66

The is a method for converting illegal profits in U.S.currency to Colombian pesos in an effort to hide the illegal funds.

Question 67

According to the ,drugs were not linked to al Qaeda's attack on New York and Washington D.C.

A)Bush Administration
B)Obama Administration
C)9/11 Commission
D)United Nations

Question 68

is an investigative tool used to track money used in illegal activities.

Question 69

is a political party,a social welfare organization,and a militant group that uses all types of sources for funding,and moves money in underground networks and laundering systems.

Question 70

____________________________ is a common global economic network that ideally unites the world through production and international trade.

Question 71

is the process of converting proceeds from crime into legitimate money.

Question 72

The underground economy and its ties to crime are so important to terrorists because all of the transactions remain
.

Question 73

The FBI estimates that the underground economy produces $_______ billion per year.

Question 74

is defined as assimilating illegally obtained money in the formal economy and giving funds the appearance of legitimacy.

Question 75

Most of Hezbollah's funds come from state funding,with acting as the principal sponsor.

Question 76

is defined as placing illegal monetary profits in the legitimate financial system.

Question 77

is defined as concealing the source of illegal income.

Question 78

is a term used by Carlos Marighella for armed robbery.

Question 79

The major city in is Ciudad del Este.

Question 80

Inside Lebanon is an extensive protection racket that charges legitimate businesses to ensure that their property will not be damaged and that their personnel are not harmed.The charges are collectively known as a(n)
______________________________.