Terrorism financing and the threat to financial institutions

Abstract

Purpose

The purpose of this paper is to explore countering the financing of terrorism and its impact on financial institutions.

Design/methodology/approach

Actual examples of terrorist financing are considered, as well as the international and Canadian framework for financial institutions.

Findings

The system for countering the financing of terrorism can be improved to lower costs and risks to financial institutions and to enhance actionable intelligence. A balance must be sought between the objective, actionable intelligence and the mechanism used to advance that objective.

Research limitations/implications

There is limited research on terrorism financing and little statistical data.

Practical implications

Some simple and modest reforms to the framework are suggested; policy makers need to consider their goals and revaluate the existing framework.

Originality/value

There is little writing in this area. This paper would be of interest to financial institutions, regulators, law enforcement and the intelligence community.

Citation

Simser, J. (2011), "Terrorism financing and the threat to financial institutions", Journal of Money Laundering Control, Vol. 14 No. 4, pp. 334-345. https://doi.org/10.1108/13685201111173811