The guidance provides good approaches, relevant information sources and practical examples for practitioners to consider when assessing terrorist financing risk at the jurisdiction level.
The FATF (Financial Action Task Force) has released new guidance to help practitioners assess TF (terrorist financing) risk.
Particularly intended for those in lower capacity countries, the guidance draws on inputs from over 35 jurisdictions from across the FATF Global Network on their extensive experience and lessons learnt in assessing TF risk.
It provides good approaches, relevant information sources and practical examples for practitioners to consider when assessing TF risk at the jurisdiction level.
All countries should have a holistic understanding of all stages of TF, including the raising, moving and use of funds or other assets, the FATF says. Even jurisdictions that face a low domestic terrorism risk may still face significant TF risks, in light of the cross-border nature of TF.
However, the guidance recognises that there is no one-size-fit- all approach. “Jurisdictions will need to extract from this guidance those parts that are most relevant to their unique context and threat profile,” it says.
The guidance covers the key considerations for determining the relevant scope and governance of a TF risk assessment, and practical examples to overcome information sharing challenges related to terrorism and its financing.
It also contains examples of information sources when identifying TF threats and vulnerabilities – including in the banking and money or value transfer sectors, and in the context of non-profit organisations – as well as considerations for specific country contexts (e.g. financial and trade centres, lower capacity jurisdictions, jurisdictions bordering a conflict zone, etc).
The guidance also highlights the importance of establishing regular mechanisms for ongoing monitoring of TF risk, taking into account current threats and developments.
“Even countries that assess their TF risk to be low will still need to regularly monitor and review their understanding, and to stay vigilant to potential changes in TF threats and trends.”
The guidance is available here.