Legislation targets terrorist organization use of illegal tobacco trade

A group of lawmakers recently introduced a measure designed to address criminal and terrorist organizations’ use of the illegal tobacco trade to fund activities.

The Combating the Illicit Trade in Tobacco Products Act, which authorizes the executive branch to deny development and security assistance to countries knowingly profiting from the trade and implementing sanctions on those responsible. Sens. Bill Cassidy (R-LA), Roger Wicker (R-MS), Kyrsten Sinema (D-AZ), and Marco Rubio (R-FL) co-sponsored the bill.

“Cartels and terrorists are getting creative to fund their criminal activity, putting Americans in danger,” said Cassidy, who released a white paper in September addressing criminal organizations’ hijacking of legal trade networks. “We need to take every step to combat these groups and hold those supporting them accountable.”

According to a study released by the Center for the Analysis of Terrorism, nearly 15 worldwide terrorist organizations regularly have recourse in large proportions to smuggling and counterfeiting cigarettes, including Hezbollah.

A Department of State report maintains the illicit tobacco products trade costs governments and taxpayers between $40 billion and $50 billion in annual tax revenues.

Cassidy’s white paper identified trade-based money laundering as a threat binding drug trafficking, terrorism, and counterfeit consumer products.