The terrorism financing cycle involves three stages that terrorist organisation may use to support a terrorist network, organisation, or cell.

Stage 1 – Raising funds

Raising funds is about how funds are raised to support terrorism financing and that can be done via legitimate or criminal activities.

Examples: 

  • donations
  • self-funding
  • criminal activity.

Stage 2 – Transferring funds

Transferring funds is about how funds are transferred to a terrorist network, organisation, or cell, and money laundering is often associated with this stage of the terrorism financing cycle.

Examples:

Funds need to be ‘stored’ at each stage of the terrorism financing process. Storage methods can range from hiding cash in a private residence or in a ‘sandooq’ (cash box), to depositing funds in a bank account or other financial product.

Money laundering may be a part of the transferring funds process, when dealing with funds that have been sourced via criminal activity, used to make those funds look like they have come from a legitimate source.

Stage 3 – Using funds

Using funds is about how funds can be used for direct and indirect support of terrorist activities carried out by the terrorist network, organisation, or cell.

Examples:

  • purchasing weapons or bomb making equipment
  • payment to insurgents
  • covering living expenses for a terrorist cell.

Find out how you can access online learning on anti-money laundering and counter terrorism financing now.

Sentrient provide an online AML and CTF course that enables a Reporting Entity to deliver robust training for its staff that has been legally endorsed and covers legislation for all states and territories in Australia.

For more information contact us on 1300 040 589 or visit our website at www.sentrient.com.au today.