With an estimated Tamil population of 30,000, Australia is one of the largest sources of funding for the Liberation Tigers of Tamil Eelam (LTTE). In confirmation, the Sri Lankan Foreign Secretary Palitha Kohona disclosed on May 1, 2007, that the LTTE internationally raises approximately USD 10 million to USD 30 million a month, of which almost 20 to 30 per cent comes from Australia.
However, acknowledging the fact that funds were being raised in his country to finance LTTE operations on May 2, 2007, Australian Foreign Minister Alexander Downer stressed that the amounts raised were not huge: "Some of it comes from Australia, probably nothing like 30 per cent, but small amounts do come from Australia. I don't think there's any doubt about that. It's been very hard to collect evidence, though, about money in Australia and paid directly to the Tamil Tigers, which is, an offense.'' While many of the Tamils in Australia identify with the LTTE's cause, only some are known to be engaged in raising funds.
But Australia is emerging as a "central front of a distant war - a rich source of millions of dollars in funds and equipment for the Tamil Tiger terrorist group to help wage their separatist war in Sri Lanka," The Weekend Australian reported on May 5, 2007. Extracts of the report titled 'How tsunami cash bankrolled Tigers' stated: "Sources say LTTE had been raising modest amounts of money here since the 1980s but its operations were transformed by the 2004 Boxing Day tsunami which gave the group its first chance to milk large amounts of cash from Australians."
Australia, in pursuance of UN Security Council Resolution No. 1373 on suppressing the financing of terrorism, on December 21, 2001, proscribed 25 terrorist organizations, including the LTTE. The purpose was to bring the LTTE under an asset-freezing programme and stem the flow of funds to the group from Australia. Under this programme, it is an offence to provide or even possess any asset belonging to a listed terrorist group or individual, and this offence is punishable by up to five years imprisonment.
The LTTE, for which procuring adequate finances lies at the heart of its terrorist campaign, reportedly raises funds in Australia through a range of front organizations working among the Sri Lankan Tamil Diaspora. The rebel cover organisations have gradually secured a considerable degree of visibility in Australia, with networks of offices and cells to carry out propaganda, organise the procurement and movement of weapons and raise funds from the Diaspora.
There are at least 300 LTTE activists spread across Australia. Some of them use "intimidatory" or "emotional tactics" to attract funds from other Tamils and those "who refuse to give money are labeled traitors and subsequently isolated by the community." LTTE donors in Australia are "spread across the economic spectrum, ranging from grocery store owners to medical specialists, lawyers and media players."
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