Terrorist financing is between the key primary offences of ML legislation
Terrorist financing may use legitimate funds for illegal activities. On the other hand in M.L the money always derives from illegal activity.
Terrorists wish to disguise the link between their funding source and themselves ,so many of the layering techniques are used.
Key suspicious items
Account holders name on a list of suspected terrorists
Frequent large cash deposits in a non-profit’s account
High volume of transactions
Lack of clear relationship between activity and account holders business
Large cash deposits followed by frequent withdrawals until the funds are depleted.
To use an account as a front for a person with suspected terrorist links
After the terrorist attacks of the 11/9/2001, there was an explosion of the global countermeasures against the Terrorist Finance and the proliferation of weapons of mass destruction.In particular,the basic legal changes in the global AML environment are the following :1) FATF adopted 9 recommendations with the FATF revision of 2003 and 2012 2),the Basel Committee decided the sharing of financial records between jurisdictions in connection with the fight against terrorist finance(2002)and formulated the consolidated KYC risk management paper(2004),3) EU Directives ,4)US Patriot Act,the Wolfsburg guidelines on the suppression of the Financing of Terrorism ,5)the reference guide of World Bank and International Monetary Fund on laundering and combating the financing of terrorism.6) the best practices of Egmont Group for the exchange of information between FIU s(Financial Intelligence Units).and the targeted financial sanctions of the UNSCR(United Nations Security Counsil Resolution)1373
Though the significant efforts to combat the terrorist finance and mitigate the global terrorism ,it seems that we are still in the middle of the ocean.The very low cost that terrorists need for a terrorist action and the ease with which they can cause a fatal accident make unfortunately the suppression of terrorist finance to seem like an unfulfilled dream.Terrorism is one step ahead from laws and predictability.