TERRORISM FINANCING – What are the danger signals?
Terrorist and insurgency groups and their operations feature in the daily headlines across the globe. A question not posed so often in the media is how do these groups get access to funding to conduct attacks, to operate, buy equipment and arms, recruit and pay for their day-to-day activities? Countering the Financing of Terrorism (CFT/CTF) is a global issue, which concerns governments, regulatory authorities, enforcement agencies and the general public who end up the victims of the activities of these groups.
For compliance professionals one of the key elements to stifling the flow of funds to these groups is knowing who they are really doing business with. Be informed of the key trends, who are the major players, the financiers, the associates, the networks, regions most at risk, and the red flags which can indicate where the hidden risk may lie.
Avoiding sanctions breaches, AML/CFT violations, and heavy monetary penalties, not to mention subsequent bad publicity for your organization and brand, can result in a lack of trust from the public, and clients. To be able to remain compliant should be a priority for regulated organizations.
This month, David Craig from Thomson Reuters, covered the issue of terrorist activity in his blog:
“Illicit trade and related terrorist or criminal activity is not something that just operates in the shadows. Illicit funds reenter the world through routine activities like real estate investments, the sale of high value goods like antiquities and art or financial transactions, not to mention more nefarious activities like wildlife crime or human trafficking. No doubt, financial institutions are, in fact, in a unique position to use their data to idenfity anomalies in financial transactions which may shine a light in illicit activity.”
This month’s resource rich Knowledge Bank is packed with information and helpful guides, including a whitepaper dedicated to the subject of charities and terrorism funding, infographics, Expert Talk articles and much more to assist you in learning about counter terrorism and the risks it poses for business, including:
- The different funding methods used by terrorist and insurgents groups
- The techniques they use to avoid detection
- What behaviors compliance professionals should be on the lookout for to prevent terror finance gaining access to the global financial system.
- The roles NPOs may play
- Why it is a misconception that financial crime and terrorist activity is predominantly the problem of failed or economically poor countries and states
Thomson Reuters KYC risk intelligence database, World-Check, has had a specialist research unit dedicated to identifying terrorism and insurgency networks and their financiers and associates. World-Check research has been recognized by Interpol for services to law enforcement and the fight against crime. Learn more about the unit and how it operates in the Knowledge Bank.