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The global war on terrorism is constricting the flow of financial support to terror groups. To circumvent these measures, transnational terrorist organizations are moving deeper into organized criminal activity. This transition poses a tremendous challenge to states struggling with a threat that has changed significantly since September 11. As terror groups transform into hybrid criminal/terror entities and partner with criminal syndicates, the threat to the United States and other nations rises in complexity, demanding a highly flexible, tailored response.