MANILA (Reuters) - Proceeds from the sale of counterfeit cigarettes, medicines, CDs and DVDs that are regularly smuggled into the southern Philippines could be helping fund al Qaeda-linked militants in the region, a security expert said on Thursday.
Jeffrey Williams, managing director of private security and investigation firm Orion Support Inc., warned innocent purchases from Internet sites and street markets of fake Nike merchandise, counterfeit CDs and DVDs could be funding militant attacks.
"Terrorist organizations are attracted to counterfeiting and piracy because it's a lucrative business, but also allows terrorists to remain anonymous," Williams told an anti-terrorism forum in Manila.
"It's a high profit and low-risk operation that has grown exponentially."
Citing a study made by Singapore's International Centre for Political Violence and Terrorism Research, Williams said trade in counterfeit products was estimated to have reached $650 billion annually, exceeding the global narcotics trade at $322 billion.
The Paris-based International Chamber of Commerce has estimated that the global counterfeit market accounts for more than 9 percent of today's world trade, Williams added.
"Terrorist groups may receive financial support from sale of counterfeit products in the Philippines, Indonesia and Malaysia," said Williams, who was with Pinkerton before he formed his own security consultancy firm.
As early as 2005, Williams said there has been increasing evidence to show the Abu Sayyaf, an al Qaeda-linked militant group in the southern Philippines, had expanded the funding of its operations to include sale of fake cigarettes and drugs.
"It's possible that at least a small percentage of the profits made from the very large volume of counterfeit CD and DVDs that are imported into and sold throughout the Philippines by those with strong ties to the Middle East may be diverted to those local terrorist groups who have strong ties to the Middle East," Williams said.
(Reporting by Manny Mogato; Editing by Raju Gopalakrishnan)
http://www.reuters.com/article/worldNews/idUSMAN7525920080306
