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Sri Lanka’s Tamil Tiger dodge financial regulators

Oct 25, 2007 (LBO) – Sri Lanka's Tamil Tiger rebels have developed a sophisticated international system to transfer funds for their weapons procurement without being detected by financial regulators, a counter-terrorism expert told a recent conference in Colombo. The Liberation Tigers of Tamil Eelam (LTTE) operates a "hub and spoke" network for money transfer modalities, Shanaka Jayasekara said at the International Conference on Countering Terrorism.

He said studies have identified one financial network known as the 'Sana Group' which has one principal controller and eight 'trust-managers' located in Europe, North America and South East Asia.

The leadership in Kilinochchi, a rebel-held town in northern Sri Lanka, stipulates financial targets that each country representative and the finance unit need to achieve, Jayasekara said.

The funds apportioned for procurement purposes are relocated to designated trust managers and held in safe locations.

"These transfers take place using several mediums such as banks, human cash couriers and over invoicing import-export transactions," he said.

"The trust-managers place the funds in multiple forms of investment to avoid detection by regulatory authorities."

He said it is believed the t

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