The Financial Action Task Force (FATF) has highlighted the seriousness and evolution of the risks associated with terrorist financing and warned of gaps in countries’ ability to fully understand terrorist financing trends and therefore respond effectively, in its report published on Tuesday 8 July.
Terrorists are persistently able to exploit the international financial system to support their activities and carry out attacks. Terrorist financing methods vary according to a number of factors and contexts, demonstrating the adaptability of terrorists and underlining the need for risk-based counter-terrorist financing measures.
69% of jurisdictions evaluated by the FATF have major or structural deficiencies in the effectiveness of investigations, prosecutions and convictions in terrorist financing cases. Unless public and private sectors urgently increase technical compliance and efficiency, those seeking to finance terrorism will continue to exploit vulnerabilities.
“Humanitarian aid plays an essential role in conflict-affected regions” – conflicts that are conducive to terrorism, according to the FATF. It stressed the importance of protecting this essential work from abuse and warned against the risk of humanitarian aid being diverted for terrorist financing. In particular, it called for proportionate and risk-based measures to protect the humanitarian sector and safeguard the activities of non-governmental organisations in accordance with international law.
Read the report: https://aeur.eu/f/hr2 (Original version in French by Anne Damiani)