Terrorist Financing Activities
Terrorist financing activities differ from money laundering in one respect that undermines a great deal of standard monitoring.
Money laundering starts with funds from an illegitimate source and works to make them look clean. Terrorist financing can start with money that is already clean. Salary, business revenue, donations, a legitimate loan.
Controls built to trace where money came from therefore have less to find. There is no dirty origin to uncover, because the concern is where the money is going and what it will be used for.
What still works is behaviour. Transactions inconsistent with a customer’s stated purpose. Structuring to stay under thresholds. Movement to higher risk jurisdictions without a business rationale. Reluctance to explain who the beneficiary is or why a payment is being made.
AUSTRAC publishes indicators for reporting entities. This is general information rather than legal advice, and obligations vary by state and territory.
See Sentrient’s AML CTF training course and risk management system.
7 Ways to Identify Potential Terrorism Financing Activity?
There are a range of indicators to help you identify potential terrorism financing activity. They are often indistinguishable from money laundering indicators. The presence of a single indicator may not necessarily raise suspicion but could warrant further monitoring and examination. Multiple indicators are more likely to result in a suspicion being formed. 1. Structured cash […]
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