| This paper investigates terrorist financing in the United States and how it is currently combated and prevented by the government agencies that operate under the Department of Homeland Security (DHS). It examines what specific areas and practices of the DHS could be improved through deeper integration with the private financial sector and better utilization of its intelligence, technology, and human resources. Out of the regulatory and operational tools the DHS has access to, this paper finds the Cornerstone partnerships and Trade Transparency Units (TTUs) - as initiated by the Immigrations and Customs Enforcement (ICE) - the most successful so far; representing two important ways financial institutions can be further integrated to better combat terrorist financing. Mandatory Cornerstone partnerships between financial institutions and local law enforcement agencies could help raise a higher awareness of current suspicions of terrorist financing and generate more qualitative reporting to authorities. An increase in TTUs, or equivalent partnerships between nations, would greatly simplify future investigations and detection of illegal transactions tied to terrorist cells and organizations in support of terrorism.;Keywords: terrorist financing, money laundering, financial institutions, USA PATRIOT ACT, Department of Homeland Security, Immigrations and Customs Enforcement, privatization, Cornerstone, Trade Transparency Units, Suspicious Activity Reports. |
