Table of Contents
How do terrorists finance their operations?
To finance their activities, these groups rely on multiple revenue streams, including criminal activity, such as kidnapping for ransom (KFR), extortion, and drug trafficking; donations directly from individuals and those funneled through charitable organizations; and state sponsorship.
What is a common type of money laundering related to funding terrorism?
The 2010 report prepared by the Financial Action Task Force (FATF) on money laundering in free trade zones maintains that one of the most commonly-used methods for financing terrorism in Central and South America is Trade Based Money Laundering (TBML).
How terrorists might usually secure financing?
Terrorist groups may also secure funding from illegal sources, such as drug trafficking, extortion, or smuggling. They may also secure donations through legal routes, such as wealthy benefactors, front organizations, or business activities.
What methodologies do terrorists get funding for their efforts?
Terrorists and terrorist organizations often use any resource of money they can have access to in order to fund themselves. This can range from the distribution of narcotics, black market oil, having businesses such as car dealerships, taxi companies, etc.
What is terrorism financing FATF?
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.
What are the indicators of money laundering?
You should be aware of the following behaviours that indicate a customer might be undertaking money laundering: Unusual transactions or activity compared to their normal dealings. Unjustified large cash deposits or constantly large balances. The use of large amounts of cash to purchase cashier’s checks or money orders.
Why is detecting terrorism financing difficult?
Identifying possible terrorist financing may be a more difficult endeavor, since transactions may originate from legitimate sources and involve relatively small amounts of money.
What is counter financing of terrorism?
The act by which illicit funds are made to appear legitimate (which the term refers to) is defined in key international instruments, most notably the UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the UN Convention Against Transnational Organized Crime.
What is GREY list of FATF?
Grey listing means FATF has placed a country under increased monitoring to check its progress on measures against money laundering and terrorism financing. The “grey list” is also known as the “increased monitoring list”.
What are red flag indicators?
A red flag is a warning or indicator, suggesting that there is a potential problem or threat with a company’s stock, financial statements, or news reports. Red flags may be any undesirable characteristic that stands out to an analyst or investor. Red flags tend to vary.
What are the red flag indicators of money laundering?
refuses to provide information, data, and the necessary documents. provide fake documents. uses an email address that cannot be found on the Internet. a partner associated or known or known to a person involved in or suspected of terrorist or terrorist financing activities.