Terrorist Financing Activity

Terrorist financing activity is frequently missed because people are watching the wrong variable. The instinct is to look for large sums, and the amounts involved are often modest.

Inconsistency is the better signal. A customer whose activity does not match the business they described. Sudden changes in the pattern of an established account. Payments to or from parties with no apparent connection to the customer.

Behaviour around the transaction matters too. Vagueness about the purpose of funds, reluctance to identify a beneficiary, requests to split a payment or keep it below a threshold, and unusual urgency.

Front line staff see these things and often do not report them, because they assume someone senior already knows. Making the reporting route obvious and consequence free is a larger control than most detection software.

AUSTRAC receives suspicious matter reports. This is general information rather than legal advice, and obligations vary by state and territory.

See Sentrient’s AML CTF training course and incident reporting software.