Institutionalization of Risk Management Framework in Islamic NGOs for Suppressing Terrorism Financing: An Exploratory Research
Posted: 26 Aug 2013
Date Written: January 29, 2013
Islamic NGOs established for philanthropic and humanitarian aid in third world Muslim countries have been accused of being involved in terrorism financing. This revelation is to the disadvantage of the donors who do not channel their donations for such activities. We explore the counter-insurgency theory and political process model to explain the current state of counter terrorism activities aimed at Islamic NGOs after 9/11. We believe the idea of money flow disruption to be of greater importance than freezing the accounts to suppress terrorism financing. To complement the various regional and international initiatives championed by APG and FATF to combat money laundering and terrorist financing, we propose risk management framework useful at operational level to detect and prevent welfare activities financing warfare activities.
Keywords: Islamic non-government organization, internal control, risk management, terrorism
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