One ransoms as between 2005 and 2012One ransoms as between 2005 and 2012

One of the most important questions we need to ask, before we start off with the discussion on how to counter Maritime Piracy, is how it is financed.The global community has not been successful in taking collective action to track, detect, disrupt, and confiscate the proceeds of piracy.The financing of Piracy occurs through many curious and elaborate mechanisms.This may include:-Direct fundingThis can include a variety of pathways which help generate surplus. This variety may include profits from Ransoms, profits gained out of capturing valuable ships or ships with valuable cargo like oil, metals, etc.The statistics say a lot to support the dependence on ransoms as between 2005 and 2012 an estimated amount between $339m and $413m was paid in ransoms off the Somali coast with the average haul being $2.7m.Pirate expedition costs depend on their scale, and on this scale their funding source and quantity.The cost of a pirate expedition can range from a few hundred dollars, which is an amount easily available and can be covered by even those who are a part of it, to more substantial exploits which require inputs upward of $30000 and require outside help. This outside help can consist of a consortium of former police and military officers or civil servants, qat* dealers, fishermen and former pirates. Investments are made on the condition of 30% to 75% share of the total proceeds from the ransom money. The consortium usually consists of three to five investors. Some provide loans or investment advice to other financiers.Some of the financiers, usually belonging to the Somali Diaspora, having a little amount of cash onshore in Somalia and the like but have large deposits abroad, employ what can be described  as “trade-based money-laundering” to send funds to Somalia. This involves finding legitimate Somali importers willing to use a financier’s foreign money to pay for their shipments and reimburse him at home in cash once the goods are sold.This influx of cash further bolsters the already strong funding of Pirate Activities. Bourse Based Method- With investors buying and selling shares in upcoming attacks at an exchange in Harardhere,