What are Combating the Financing of Terrorism (CFT) Initiatives?

Terrorism is an ongoing threat that many governments worldwide are trying to stop. Terrorists need funding to finance their activities, and figuring out where that money comes from can help law enforcement stop and catch criminals.

Also known as "Counter financing of Terrorism," Combating the Financing of Terrorism (CFT) is a term that describes several initiatives, policies, and regulations that aim to restrict terrorist funding.

How Do Terrorists Get Funding?

Terrorists obtain money in many ways. In some cases, it comes from legitimate means such as businesses, religious organizations, and more. Money can also come from crimes like drug trafficking and corruption. Either way, that money has to move somehow to fund terrorist activities.

Money laundering and terrorism go hand in hand. It's how terrorists disguise funding and keep the movement under the radar. Through laundering, these organizations can make money from illegal sources look clean and legitimate.

Understanding CFT Initiatives

The Financial Action Task Force (FATF) is the driving force behind CFT policies. The task force includes 37 countries and two regional organizations. The separate entities work together to create processes that protect the international financial system from terrorist infiltration.

After the start of FATF, many countries started adopting CFT policies. As a company leader, you must know your business solutions for CFT and understand how they fit into the bigger picture.

How Financial Institutes Fit In

On a national level, CFT practices are akin to anti-money laundering policies. It's about verifying customer identities and complying with established rules. Financial institutes are at the front lines of CFT. You must know your business solutions and do your due diligence to verify the identity of every customer.

Through KYC regulations and money-laundering prevention techniques, you can report suspicious activity and put an end to a reliable source of funding for terrorist activity.

Terrorists rely on banks to "clean" their money and disguise crucial lifelines that keep terrorism alive. By doing your part to unveil financial sources, you can help to make the world a much safer place.

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