By Iftekharul Bashar

The recent arrests in Malaysia confirm that radicalisation within the Bangladeshi diaspora is a significant and evolving threat. This problem stems from socioeconomic factors, homeland instability, and online recruitment. A transparent, collaborative, and multi-faceted P/CVE (Preventing and Countering Violent Extremism) approach is essential to mitigate the risk.

COMMENTARY

Malaysian authorities recently arrested 36 Bangladeshi citizens in Selangor and Johor for their involvement in a radical militant movement promoting Islamic State (IS) ideology. Home Minister Datuk Seri Saifuddin Nasution Ismail reported that these individuals were forming recruitment cells, fundraising for terrorism, and plotting to overthrow the Bangladesh government.

Notably, the network, as detailed by police, raised funds using international fund transfer services and e-wallets, directing money to the IS group in Syria and Bangladesh. This method highlights a growing trend in terrorist financing, leveraging the speed, lower costs, and often less stringent oversight of digital platforms and cross-border money movement to facilitate illicit financial flows globally.

Of those arrested, five have been charged with terrorism-related offences, 15 face deportation, and 16 remain under investigation, with the police anticipating further arrests. Malaysian authorities estimate that 100 to 150 individuals are suspected to be involved in this network, demonstrating the scale of the threat they are actively dismantling.

These arrests are a stark reminder that the threat of extremism continues to cast a long shadow, not just within Bangladesh’s national borders but also across diaspora communities. The arrest of the 36 nationals is not an isolated incident. There have been previous cases of radicalisation of Bangladeshis in Malaysia.

In May 2019, a 28-year-old Bangladeshi mechanic was arrested in Kuala Kedah; he had possessed the necessary chemicals and expertise to produce improvised explosive devices (IEDs). Earlier in January 2017, two Bangladeshi salesmen, aged 27 and 28, were arrested in Kuala Lumpur, reportedly for having ties with suspected IS militants in Bangladesh and for planning to join a terror cell in the southern Philippines.

Singapore, among other nations, has also experienced similar cases in the past, notably in 2015, 2016, and 2020, highlighting a recurring pattern of Bangladeshi diaspora members being targeted and recruited by terrorist networks, including the Islamic State.

S. Rajaratnam School of International Studies, NTU Singapore, 2025. 6p.

By Jessica Davis

Illicit actors in Afghanistan, including drug traffickers, warlords, terrorist groups, and even former government officials, exploit the country to achieve their own political and economic objectives. Historical and contemporary sources demonstrate that there are patterns in how these actors raise, manage, store, move, and obscure money. This paper provides a historical and contemporary overview of illicit financing activities in Afghanistan. It uses a terrorist financing framework to explain the various mechanisms involved in how illicit actors raise, use, move, store, manage, and obscure their funds. Specific jurisdictions used for illicit finance and global financial vulnerabilities that illicit actors with a nexus to Afghanistan exploit in their financial activities are discussed, outlining the threat-agnostic capabilities that could tackle some of these illicit financial challenges.

To raise funds, illicit actors engage in the production and trafficking of narcotics, taxation and extortion activities, illegal mining and timber production, and any other activities that can generate revenues. Depending on the actor in question, management of the acquired funds might be centralised, within the purview of a financial head, or decentralised, with control vested within several stakeholders. Illicit actors store some of their funds in cash within Afghanistan and use hawalas and banks to both store and transfer wealth out of the country. Since the Taliban takeover, international sanctions have largely ended the ability of banks to transact with most aspects of the global financial sector, with the exception of regional banking relationships that remain intact. Therefore, in addition to hawalas, common methods of moving money out of Afghanistan include bulk cash couriers, the transfer of precious metals and stones, and trade-based money laundering schemes. Wealth is moved out of Afghanistan to several key jurisdictions. Much of it makes its way to the United Arab Emirates (UAE) where funds are invested in businesses and real estate. Funds are also moved to Pakistan, Turkey, and to a lesser extent Iran and other neighbouring or proximate countries.

The stability of illicit financing mechanisms over time and across illicit actors presents opportunities for detection and disruption. However, this also applies to limitations of disruption opportunities. Since illicit actors in Afghanistan raise most of their funds within the country, there are few opportunities to disrupt internal Afghan revenue sources in the post-August 2021 context. As such, other detection and disruption opportunities that can be used to combat illicit financing with a nexus to Afghanistan must be examined. The policy options elaborated in this report include: enhancing the monitoring of aid and donor funding entering the country, facilitating the adoption of foreign asset and beneficial ownership tracing, introducing reforms to the hawala and banking sectors, and addressing deficiencies in international sanctions regimes.

A regionally coordinated policy approach to counter illicit financing from Afghanistan can reduce the ability of illicit actors to access their wealth and fund their activities. However, without access to a cooperative government in Afghanistan, there are limits to what can be achieved. Nonetheless, many of the policy and disruption opportunities available to counter illicit Afghan finance also serve to strengthen the integrity of the global financial system, address existing policy gaps in other jurisdictions, and can generally serve to enhance international cooperation on counter-illicit financing.

SOC ACE Research Paper No 11.

Birmingham, UK: University of Birmingham, 2022. 32p.

By Oluwole Ojewale and Raoul Sumo Tayo

This study presents evidence on the dynamics of cattle rustling in border regions of Cameroon and Chad. It identifies the drivers and enablers of the phenomenon and the networks of actors engaged in the criminal economy. The ungoverned spaces of border regions pose security challenges and accentuate the illicit economy of cattle rustling. Addressing cattle rustling in southern Chad and northern Cameroon requires a comprehensive, multi-stakeholder approach due to the complex interplay of economic, social and security dynamics in the regions. Key findings • The primary enablers of cattle rustling include transhumance and child labour, multiple conflicts, failure of governance, environmental factors, porous borders, cultural perception and social acceptance, corruption and ineffective justice system. • The link between cattle rustling and other forms of organised crime manifests through terrorism financing, cross-border smuggling, arms trafficking, abduction and money laundering. • In addition to the traditional cattle rustlers, the dominant actors perpetrating cattle rusting are ISWAP (71.4%), Boko Haram (9.5%), separatist groups (8.1%) and unidentified armed groups (5.4%).

ENACT, 2025. 36p.

By Elie Cavigneaux

Defeating terrorism and saving art: fighting the same battle

In a world where chaos and political instability plague many countries in the Middle East and North Africa, a lesser-known crime has emerged: the trafficking of cultural goods. This phenomenon, often overshadowed by more prominent issues, poses a significant global threat. But why is the trafficking of art and antiquities so concerning?

1. Financing Terrorism: Cultural goods trafficking is not merely a trade—it’s a critical source of funding for terrorism. Security Council resolutions, UNESCO, the European Union, and financial investigation units have all documented this link. The self-proclaimed “Islamic State” even institutionalized this trade, issuing excavation permits and organizing the sale of stolen pieces to market countries.

2. Hidden Threats: Although these looted artifacts may not flood the markets immediately, history shows that they can resurface years later. Works looted by the Nazis during World War II, for instance, have reappeared after decades of concealment.

3. Beyond Terrorism: Yet, the interest in this analysis extends beyond terrorism financing. The resale of “blood antiquities” reveals another dimension: money laundering, fraud, and tax evasion. This criminal activity affects not only the antiques market but also the broader art market.

4. Investing for Tomorrow: To combat this multifaceted threat, we must invest in detecting and preventing crimes related to cultural and art objects. Whether in times of war or peace, our ability to safeguard culture and heritage depends on proactive measures.

Working Paper. Paris: Groupe d’études géopolitiques, 2021. 13p