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 ?  
MiFID MiFIR - Compliance Consultancy
MiFID MiFIR

What is MiFID II and MiFIR?The Directive 2014/65/EU (hereafter the "Directive"...

Anti Bribery and Corruption - Compliance Consultancy
Anti Bribery and Corruption

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

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

Since 2007, the technological development and the growth of electronic and mobile pay...

Politically Exposed Persons - Compliance Consultancy
Politically Exposed Persons

As part of their KYC procedure, financial firms submitted to AML regulation must list...

Anti Money Laundering - Compliance Consultancy
Anti Money Laundering

Anti-money laundering (AML) is an important aspect of the financial industry because ...

Sanctions and Embargoes - Compliance Consultancy
Sanctions and Embargoes

What is an embargo?As a result of globalization, businesses are more likely to face t...

Common Reporting Standard - Compliance Consultancy
Common Reporting Standard

What is the Common Reporting Standard (CRS)?Following the 2010 US Foreign Account Tax...

Customer Due Diligence - Compliance Consultancy
Customer Due Diligence

Customer due diligence (CDD) is the process of verifying the identity of a customer o...

Cryptocurrencies - Compliance Consultancy
Cryptocurrencies

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

Cybersecurity - Compliance Consultancy
Cybersecurity

Faced with the outbreak of highly targeted attacks, risk management and information s...

Screening - Compliance Consultancy
Screening

Businesses and financial institutions continuously face risks and obligations, such a...

Market Abuse - Compliance Consultancy
Market Abuse

Financial markets have become increasingly global, giving rise to new trading platfor...

FATCA - Compliance Consultancy
FATCA

What is FATCA?FATCA is the US Foreign Account Tax Compliance Act, enacted in 2010 to ...

Anti Fraud - Compliance Consultancy
Anti Fraud

Fraud is a significant risk for businesses, with technological advancements leading t...

Insider Dealing - Compliance Consultancy
Insider Dealing

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

Know Your Customer - Compliance Consultancy
Know Your Customer

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

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
Discover
Aurelie Vandenbulcke - Pideeco Network Partner
Aurelie Vandenbulcke
Junior Consultant
Discover
Pavel Matejka - Pideeco Network Partner
Pavel Matejka
Senior Consultant
Discover
Luisa Nadege Cafi - Pideeco Network Partner
Luisa Nadege Cafi
Junior Consultant
Discover
How effective are AML fines?
Stefano Siggia

Considered a strong deterrent against financial crime, AML fines seem to be little more than symbolic slaps on the wrist for financial institutions with vast pockets. With trillions of dollars being freely laundered every year and ambiguous structural changes required t...

Read more Author What else ?
How effective are AML fines? - Pideeco Journal