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Terrorists Blaze a New Money Trail 

But most terrorism financiers do the opposite of the drug barons. Instead of laundering their money, they keep it away from institutions that create a paper trail. They use criminal activities, like cigarette smuggling, credit card fraud and check forgery, to raise cash, then ship the money overseas or have a courier deliver it. Thus, a new black market has been created, and the goal is to keep the money invisible, not by washing it, but by hiding it. . . .

In Charlotte, N.C., last year, members of a Hezbollah cell were convicted of racketeering in a cigarette smuggling scam. Cigarettes purchased without paying state tax in North Carolina were trucked to Detroit, where they were resold, for cash. The cash was then sent to Lebanon, by courier or by mail. A photo introduced as evidence at the criminal trial showed several cell members sitting at a table overflowing with $20 and $100 bills.

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