Primer: In deference to the ATF, it is known with historical cases that tobacco smuggling does fund terror, see document at end of post)
In 2013, Sixteen Palestinian men, some with ties to convicted terrorists, were indicted in a scheme of cigarette smuggling that spanned New York, Maryland, Delaware, Virginia and New Jersey states. Some of them had ties to known terrorist organizations. See the official case here.
A.T.F. Filled Secret Bank Account With Millions From Shadowy Cigarette Sales