FATF Issues New Guidance on Assessing Terror Finance Risks
10 Jul 2019

The Financial Action Task Force (FATF) published new guidance Friday on how nations and compliance professionals can best implement counterterrorist financing (CFT) strategies and policies.

The paper expands on recommendations issued in 2013 by the Paris-based intergovernmental group on national money laundering and terrorist financing risk assessments, and includes input drawn from over 35 jurisdictions across the globe. Among other things, the latest guidance highlights the need for regular mechanisms to identify such illicit funds, including when assessing nonprofit organizations.

In the report, FATF also addresses the following:

  • Key considerations when determining the relevant scope and governance of a terrorist financing risk assessment, and practical examples to overcome information sharing challenges related to terrorism and its financing.
  • Examples of information sources when identifying terrorist financing threats and vulnerabilities, and considerations for specific country contexts (e.g., financial and trade centres, lower capacity jurisdictions, jurisdictions bordering a conflict zone, etc.).
  • Relevant information sources for practitioners when identifying cross-border terrorist financing risks but also terrorist financing risks within the banking and money or value transfer sectors, and facing those nonprofit organisations that fall within the FATF definition.
  • Good approaches for maintaining an up-to-date assessment of risk, and areas for further focus going forward.

Read the full guidance report here

Read more:

FATF Report on the Financing of the Terrorist Organisation ISIL

FATF Outlines Risk-Based AML for Legal Professionals

Combating Terrorist Financing – A Review of Recent Research

 

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