Identify, describe, and analyze the issue of terrorist financing.

Identify, Describe, and Analyze the Issue of Terrorist Financing Student’s Name Professor’s Name Institutional Affiliations Course Name and Number Due Date Identify, Describe, and Analyze the Issue of Terrorist Financing Problem Statement Identification International security bodies, governments, and global financial systems have made significant efforts to frustrate criminal activities by disrupting their terrorism financing channels. The integration of robust money exchange systems that consistently monitor the transfer of funds, including flagging risky transactions, has enabled the stakeholders to avert terror activities significantly. However, Akartuna et al. (2023) report that despite the achieved milestones, criminals are finding alternative ways to overcome these security measures through complex money laundering tactics that rely on sophisticated and disruptive digital banking technologies. Wagman (2022) agrees with this observation by indicating that these inventions have presented new avenues for terrorism financiers to transfer their support unrecognized, reverting global progress. Thus, the rise of cryptocurrencies and their unregulated transactions has increased money laundering for terrorism financing globally in the last decade. Past efforts to combat money laundering and the use of such finances to finance terrorism activities have succeeded based on the complex regulation measures at the national and international levels. However, the unregulated nature of digital currencies, such as cryptocurrencies, has introduced a new threat. Many governments remain structurally and legally unprepared to contend with this rapid technological financing aspect, increasing the ease for unscrupulous individuals and institutions to divert their capital for criminal activities. Wagman (2022) reveals that the cryptocurrency market has grown fast, reaching $2.9 trillion and revolutionizing societal value transfers. The decentralized aspect also makes the system unlimited by governmental supervision, geographical boundaries, or other international control systems. According to Akartuna et al. (2023), anyone can seamlessly transfer sizeable finances to strangers online without requiring rigid banking systems to facilitate the process. As a result, this aspect is of concern for global and national security because of terrorism financing. Wagman (2022) emphasizes that specific features, including decentralization and the virtual nature, have heightened governments’ worries due to the attractiveness of facilitating money laundering. As a result, addressing these issues and minimizing the risk of exploitation by terrorist groups will s...