Editor’s note: Black money is a topic that has elicited much debate in recent times. In his new book — Black Money and Tax Havens — Prof R Vaidyanathan provides an overview of black money — its generation, estimates and how and why it is spirited away to tax havens. The following is an excerpt from the chapter titled ‘Blood Money’. Reproduced here with permission from Westland Books.
Terrorism and Offshore Financing
The life-blood of an effective terrorist network is financing and shell companies facilitate the easy distribution of money. The Islamic State, popularly referred to as ISIS makes $1 million to $2 million a day in oil production, it has obtained over $100 million in ransoms from kidnapping and collects ‘taxes’ from the 6 million people it has gained control over.
Al-Qaeda’s worldwide operations require $30-50 million per year. The September 11 attacks, for example, cost approximately $500,000. But not every