Iraq is bankrolling Al-Qaida's efforts in Pakistan, fueled by kidapping ransoms and money donated to anti-American efforts, reports the Los Angeles Times.
The CIA discovered the troubling trend after launching a new drive last year to find Osama bin Laden.
According to the Times, the influx of cash came as Pakistan withdrew troops from areas along the Afghanistan border where Bin Laden and his top deputy, Ayman Zawahiri, are believed to be hiding. Fewer troops meant it became easier to keep money flowing.
Al-Qaida's leadership was facing a money crunch a year ago, but the Iraq pipeline has changed all that.
Story Continues Below
"Iraq is a big moneymaker for them," a senior U.S. counter-terrorism official told the Times. "A year ago we were saying they were having serious money problems. That seems to have eased up."
The money is not huge -- tens of thousands of dollars. U.S. officials therefore believe it's being used for day-to-day operations rather than for funding elaborate terrorist plots.