Impact Of Terrorism Financing

The impact of terrorism financing on an individual business is rarely measured in the money involved, which may be very small. It is measured in what follows.

Where a reporting entity is found to have facilitated it, even unknowingly, the consequences are serious and mostly reputational and regulatory rather than financial in the first instance. Regulator scrutiny of every other part of your programme. Banking relationships reviewed or withdrawn. Loss of licences or accreditation in some sectors. Client and contract loss once it becomes known.

There is also a personal dimension. Obligations can attach to individuals in compliance roles, not only to the entity.

That is the honest case for taking small, odd transactions seriously. The amount involved is a very poor guide to the consequence that follows.

AUSTRAC publishes guidance for reporting entities. This is general information rather than legal advice, and obligations vary by state and territory.

See Sentrient’s AML/CTF course and risk management system.