Counter-Terrorism Financing

Nathalie Rébé, J.S.D. (2018) & LL.M. (2012) in International Tax and Financial Services, in Compliance & Risk Management, at Thomas Jefferson School of Law. D.B.A. in Financial Strategy & Risk Management (2013), Paris School of Business.

Acronyms and Abbreviations

Acknowledgements



Introduction



Part 1: Counter Terrorism Financing Worldwide Overview

 Introduction to Part 1



1 What is the Current Situation Concerning Counter-Terrorism Financing?

 A Terrorism’s Purpose and Modus Operandi

 B The Struggle to Define Terrorism

 C Defining Terrorism Financing

 D International Specialized Agencies Fighting TF

 E Current Counter-Terrorism Financing Regulations


2 Can Terrorism Financing Detected?

 A The Links between Terrorism Financing and Anti Money Laundering

 B Traditional Terrorism Financing Methods

  i) Cash Schemes

  ii) Merchandising and Movable Assets Laundering

  iii) Wire and International Transfers

  iv) Investments

  v) White Collar Crimes

  vi) Secret Banking Systems, Private Donations and Charities

  vii) Gambling

  viii) New Payment Technologies

 C Terrorism Financing Risks Faced by Financial Institutions

  i) CTF Red Flags

  ii) Cases from FIU Reports


3 Existing Compliance Measures to Prevent Terrorism Financing

 A Internationally used Tools to Detect and Report TF

  i) How Institutions Model Terrorism Financing Risk

   a Counter-terrorism Risk Models

   b Risk Assessment

   c Risk-Based Supervision

  ii) Identification

   a Customer Due Diligence (CDD)

   b Know Your Customer (KYC)

   c Enhanced Due Diligence (EDD)

   d Politically Exposed Persons (PEPs)

    1 Defining PEPs

    2 PEP Affiliated Risks

    3 Risk Mitigation and Management

   e Customer Identification Programs (CIPs)

   f Comparison with Government Terrorist lists

  iii) Reporting

   a Currency Transaction Reports (CTRs)

   b National Security Letters (NSLs)

   c Suspicious Activity Reports (SARs)

 B The Egmont Group and Financial Intelligence Units



Part 2: Main Threats to the Accomplishment and Success of a New Counter Terrorism Financing Convention

 Introduction to Part 2



4 Key Challenges at the International Level

 A Main Problems Encountered While Trying to Detect TF Activities

  i) Anonymity

  ii) Cross-border Activities

  iii) Third-party Involvement

   a Employee Participation in the Financing Scheme

   b Third-party Reliance

   c Third-party Funding

 B The Emergence of New Payment Technologies

 C International Cooperation between Actors and Agencies

 D Political Pressure



5 The Ineffectiveness of the Current Enforcement System Mechanism

 A Cross-Border Enforcement

 B Assets Tracing, Freezing of Assets and Assets Recovery



6 Potential Conflicts between a New CTF Tool and Human Rights

 A International Privacy Laws

 B Civil Liberties and Humanitarian Laws



Part 3: Current Regulatory Instruments

 Introduction to Part 3



7 Analysis of Existing Counter Terrorism Tools with Regards to Counter Terrorism Financing

 1 International Counter Terrorism Regulations

 2 Agencies and Financial Institutions Recommendations

 3 Countries Legislative Contribution



8 Current Counter Terrorism Tools and Regulations Successes and Failures

 A A Critique of Current Counter Terrorism Financing Tools and Regulations

 B Counter Terrorism Financing Regulations’ Gap Analysis

 C Constructive Criticism and Advice by International Experts for Building a New Model



Part 4: New Counter Terrorism Financing Convention Model and Recommendations

 Introduction to Part 4



9 The importance of a New CTF Framework



10 Building a New Counter-Terrorism Financing Model



11 Ways to Strengthen Worldwide Detection, Prevention and Enforcement

 A Actors’ Involvement and Cooperation at the Domestic and International Levels

 B Collaboration with the Private Sector

 C The Positive Development of Global Financial Intelligence Units

 Conclusion



Part 5: Matters for Further Consideration

 Introduction to Part 5



 Bibliography

 Annexes

 Index