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What you need to know about Terrorist Financing ?

Thesystematized knowledgeof counter policy measures to minimize risks of terrorist:

First Step

Black-Listing Terrorists (Sanctioning),

Second StepDisrupting Terrorist Finance

Third Step

Monitoring-Reporting Terrorist Activities (day and night),

Fourth Step

Destroying/Prosecuting Terrorist(s). No Mercy Policy for Terrorist Financing Business andActivities.

Logic Behind Terrorist Financing:

Motivation:

Ideological/Political

Source of Funds:

1. Internally from self-funding cells (increasingly centered

on criminal activity).

2. Externally from benefactors and fundraisers.

Conduits:Favors cash couriers or informal financial systems such as Hawala and Currency Exchange

Firms.

Detection Focus:

Suspicious relationships, such as wire transfers between seemingly unrelated parties.

Transaction Amounts:Small amounts usually below reporting thresholds.

Financial Activity:

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3. Funds transfers do not include information on the originator, or the person onwhose behalf the transaction is conducted, when the inclusion of suchinformation would be expected.

4. Multiple personal and business accounts or the accounts of nonprofitorganizations or charities are used to collect and funnel funds to a small

number of foreign beneficiaries.5. Foreign exchange transactions are performed on behalf of a customer by a

third party, followed by funds transfers to locations having no apparentbusiness connection with the customer or to high-risk countries.

Other Transactions That Appear Unusual or Suspicious1. Transactions involving foreign currency exchanges are followed within a short

time by funds transfers to high-risk locations.2. Multiple accounts are used to collect and funnel funds to a small number of

foreign beneficiaries, both persons and businesses, particularly in high-risklocations.

3. A customer obtains a credit instrument or engages in commercial financialtransactions involving the movement of funds to or from high-risk locationswhen there appear to be no logical business reasons for dealing with thoselocations.

Banks from high-risk locations open accounts1. Funds are sent or received via international transfers from or to high-risk

locations.2. Insurance policy loans or policy surrender values that are subject to a

substantial surrender charge.

Systematized knowledgeof CTF Measures

Paranoia and Paranoid Disorders

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