Compliance Consultancy
Risk management and Consultancy firm

Terrorist Financing

The financing of terrorism is defined as the distribution or collection of funds, in any way, directly or indirectly, with the purpose of or knowledge that these funds will be used in full or in part by a terrorist or a terrorist organisation. Like the fight against money laundering, embargoes and the respect of international sanctions, the fight against the financing of terrorism contributes to the security and the reliance of the financial market and its actors.

How preventive terrorism mechanisms are conceived in financial industries

The fight against the financing of Terrorism - financial institutions
Flows of illicit money can damage the integrity, stability and reputation of the financial sector, and threaten the internal markets of the European Union as well as international development. Money laundering, terrorist financing and organised crime remain significant problems. Targeted and proportionate prevention of the use of the financial system for money laundering and terrorist financing is indispensable. The soundness, integrity and stability of credit and financial institutions could seriously be jeopardised by the efforts of criminals to place illegal money in the market.

In the past years we have witnessed an unprecedented increase in terrorist activities in Europe and outside. The cost of the attacks might not be high, but the maintenance of a terrorist organisation requires high flows of money. Cutting the finances of these organisations means to fight terrorism.

The European Union has taken measures against money laundering (hereafter "AML") and counter-terrorism financing by entering into force relevant legislation. In June 2018 the fifth AML Directive was published, amending the fourth AML Directive (2015). The EU regulation update gives a sense of the pressure of the European institutions to face the late cases of international money laundering schemes revealed to the public by the consortium of international journalists, but also the urgency to consider the technological evolution among financial services.

Belgium, as most of the EU member states, is a member of Financial Action Task Force (hereafter "FATF"), which is an inter-governmental body that sets standards (i.e. which countries are high risk) for the fight against money laundering and terrorist financing. The need for international level cooperation becomes urgent as the system for financing terrorism has become cross-border and more sophisticated in terms of methods used (i.e. IT tools).

In 2018, the FATF adopted an amended counter-terrorist financing operational plan. The adoption of an updated policy underlines how terrorism evolves and how important it is for countries to ensure that the financial system is not used to fund terrorist activities.
FATF fight against the financing of terrorism - financial institutions

Every business has to be in line with the requirements of the law regarding the financing of terrorism. In the EU, non-compliance has severe criminal sanctions, financial impact and substantial reputational damage for the business.
Was this service page helpful ?  
Customer Due Diligence - Compliance Consultancy
Customer Due Diligence

The Customer Due Diligence (hereafter “CDD”) investigation is required by EU juri...

Screening - Compliance Consultancy

Are you familiar with the term "screening" or are you wondering what does it ...

Insider Dealing - Compliance Consultancy
Insider Dealing

Insider dealing (the term "insider trading" is also frequently used) arises w...

Terrorist Financing - Compliance Consultancy
Terrorist Financing

The financing of terrorism is defined as the distribution or collection of funds, in ...

Payment Service Directive 2 - Compliance Consultancy
Payment Service Directive 2

The idea behind the Payment Service Directives (PSD) aims at simplifying the lives of...

Cybersecurity - Compliance Consultancy

Faced with the outbreak of highly targeted attacks and a highly regulated environment...

MiFID MiFIR - Compliance Consultancy

The Directive 2014/65/EU (hereafter the "Directive") on markets in financia...

Cryptocurrencies - Compliance Consultancy

What are the dangers of cryptocurrencies?Cryptocurrencies are virtual or digital curr...

Anti Money Laundering - Compliance Consultancy
Anti Money Laundering

Anti-money laundering compliance regulations are a challenge for financial institutio...

Know Your Customer - Compliance Consultancy
Know Your Customer

Financial institutions must be able to identify and verify the identity of their cus...

Anti Fraud - Compliance Consultancy
Anti Fraud

Fraud is one of the most damaging risks your business can faceWe are in a persistent ...

Anti Bribery and Corruption - Compliance Consultancy
Anti Bribery and Corruption

Fighting against dumping and bribery is required for any company. Suspicions of corr...

Sanctions and Embargoes - Compliance Consultancy
Sanctions and Embargoes

Due to globalisation, companies are increasingly exposed to the risk of sanctions, op...

FATCA - Compliance Consultancy

Do you know FATCA?The Foreign Account Tax Compliance Act ("FATCA") was enacte...

Market Abuse - Compliance Consultancy
Market Abuse

Market Abuse is a concept that encompasses unlawful behaviour in the financial market...

Common Reporting Standard - Compliance Consultancy
Common Reporting Standard

Where does the Common Reporting Standard (CRS) idea comes from ?The concept of agreei...

Politically Exposed Persons - Compliance Consultancy
Politically Exposed Persons

It is essential that your financial company understands the concept of Politically Ex...

Get in touch with us - Compliance Consultancy
Get in touch !

We'll present you the technology to stop money laundering and terrorist financing

Europol defines Financial Crime as "illegal acts committed by an individual or a group of individuals to obtain a financial or professional advant...

Return to financial crime
Discover Pideeco Compliance Services and Business solutions for your operational business needs
Domain Experts
Damian Vildosola Truche - Pideeco Network Partner
Damian Vildosola Truche
Senior Consultant
Pavel Matejka - Pideeco Network Partner
Pavel Matejka
Senior Consultant
Drini Vula - Pideeco Network Partner
Drini Vula
Senior Consultant
Andre Figueira De Carvalho - Pideeco Network Partner
Andre Figueira De Carvalho
Junior Consultant
How and why to embed AML Lookbacks within financial firms?
Piet De Vreese

In recent years, regulators have begun to scrutinize more closely financial institutions regarding the soundness of their AML/CTF program, dissecting the nuts and bolts of their procedures and controls. But the current set-up isn’t what they are solely looking at. ...

Read more Author What else ?
How and why to embed AML Lookbacks within financial firms? - Pideeco Journal