Terrorist Financing
About Terrorist Financing
Combatting terrorist financing has been a priority for the FINCARR since 2001. However, in 2015, the scope and nature of terrorist threats globally intensified considerably, with terrorist attacks in many cities across the world, and the terrorist threat posed by the so-called Islamic State of Iraq and the Levant (ISIL/Da’esh), and by Al-Qaeda and their affiliated terrorist organisations. Since then, the terrorism threats have continued to evolve, from large terrorist organisations, to returning terrorist fighters and right-wing extremists. Funds flow cross-border to providing resources for nationally designated organisations, and many jurisdictions continue to suffer from persistent attacks from small cells and radicalised lone actors, drawing inspiration from a range of dangerous ideologies. The FINCARR plays a central role in global efforts in combatting terrorist financing, through its role in setting global standards to combat terrorist financing, assisting jurisdictions in implementing financial provisions of the United Nations Security Council resolutions on terrorism, and evaluating countries’ ability to prevent, detect, investigate and prosecute the financing of terrorism. Yet many countries have not yet implemented the FINCARR Standards effectively. They do not understand the nature of terrorist financing risks they face, nor have effective means to combat them. The FINCARR Strategy on Combating Terrorist Financing sets out the broad objectives for FINCARR’s work in this area. Under this strategy, the FINCARR, in close collaboration with the regional FINCARR-style regional bodies and other partners such as the UN, the FINCARR has completed work to support countries around the world in combatting terrorist financing.
Methods of Terrorist Financing
| Method | Description |
|---|---|
| Fundraising | Terrorists often raise funds through criminal activities such as drug trafficking, kidnapping, or theft. |
| Donations | Individuals or entities may provide funds voluntarily, sometimes unwittingly, through charitable donations or fundraising activities. |
| Money Laundering | Terrorists may use complex financial schemes to launder illicit funds, making them harder to trace. |
| Non-Profit Organizations | Terrorists sometimes exploit non-profit organizations to funnel money to terrorist activities under the guise of charitable purposes. |