Terrorist Financing Concept In AML Training Ppt

Slide 1

This slide gives the definition of terrorist financing. According to the FATF, terrorist financing is funding terrorist activities, terrorists, and terrorist groups. 

Slide 2

This slide showcases stages of terrorist financing. These are Collecting, Storing, Moving, and Using.

Instructor’s Notes: 

• Collecting: In the first stage, funds are generated from sources intended for a terrorist or terror organization
• Storing: Funds can be stored through means such as bank and other accounts, pre-paid cards, and high-value commodities such as oil, art, agricultural products, precious metals, cryptocurrencies. 
• Moving: When the terrorist organization has enough money and needs it, they relocate the money from the store to another location. The common mechanisms for moving funds include the traditional banking and financial sector, the Hawala financial system
• Using: The final stage is using the funds. There are many examples of how terrorists may spend their funds. These include using this money to pay for weapons, materials, equipment, media and training

Slide 3

This slide discusses sources of terrorist financing. Funds for terrorist financing can be generated via legitimate as well as illegitimate sources. 

Instructor’s Notes:

• Legitimate Sources: Many terrorist organizations run legitimate businesses. Some of the most prominent terrorist organizations ran fields where peanuts were grown and honey was produced. Some even ran trading businesses, tanneries
• Illegitimate Sources: Most terrorist organizations also rely on transnational crime, valued between USD 1.6 trillion and USD 2.2 trillion annually. Additionally, terrorist organizations also smuggle goods

Slide 4

This slide highlights the similarities between money laundering and terrorist financing. Money laundering and terrorist funding are both financial crimes that can have major and disastrous economic implications.

Slide 5

This slide lists the differences between money laundering and terrorist financing. Terrorist financing makes use of funds for illegal political activity, but the funds are not always obtained through illicit proceeds, unlike money laundering.