Terrorist Financing

FATF Action Plan against Terrorist Financing

FATF Documents on Terrorist Financing

At an extraordinary Plenary on the Financing of Terrorism held in Washington, D.C. on 29 and 30 October 2001, the Financial Action Task Force (FATF) expanded its mission beyond money laundering. It will now also focus its energy and expertise on the world-wide effort to combat terrorist financing.

During the extraordinary Plenary, the FATF agreed to and issued new international standards to combat terrorist financing, which it calls on all countries to adopt and implement. Implementing these Special Recommendations will deny terrorists and their supporters access to the international financial system. The agreement on the Special Recommendations commits members to:

• Take immediate steps to ratify and implement the relevant United Nations instruments.

• Criminalise the financing of terrorism, terrorist acts and terrorist organisations.

• Freeze and confiscate terrorist assets.

• Report suspicious transactions linked to terrorism.

• Provide the widest possible range of assistance to other countries’ law enforcement and regulatory authorities for terrorist financing investigations.

• Impose anti-money laundering requirements on alternative remittance systems.

• Strengthen customer identification measures in international and domestic wire transfers.

• Ensure that entities, in particular non-profit organisations, cannot be misused to finance terrorism.

In order to secure the swift and effective implementation of these new standards, FATF agreed to the following comprehensive Plan of Action:

• By 31 December 2001, self-assessment by all FATF members against the Special Recommendations. This will include a commitment to come into compliance with the Special Recommendations by June 2002 and action plans addressing the implementation of Recommendations not already in place. All countries around the world will be invited to participate on the same terms as FATF members.

• By February 2002, the development of additional guidance for financial institutions on the techniques and mechanisms used in the financing of terrorism.

• In June 2002, the initiation of a process to identify jurisdictions that lack appropriate measures to combat terrorist financing and discussion of next steps, including the possibility of counter-measures, for jurisdictions that do not counter terrorist financing.

• Regular publication by its members of the amount of suspected terrorist assets frozen, in accordance with the appropriate United Nations Security Council Resolutions.

• The provision by FATF members of technical assistance to non-members, as necessary, to assist them in complying with the Special Recommendations.

In taking forward its Plan of Action against terrorist financing, the FATF will intensify its co- operation with the FATF-style regional bodies and international organisations and bodies, such as the United Nations, the Egmont Group of Financial Intelligence Units, the G-20, and International Financial Institutions, that support and contribute to the international effort against money laundering and terrorist financing.

FATF also agreed to take into account the Special Recommendations as it revises the FATF 40 Recommendations on Money Laundering and to intensify its work with respect to corporate vehicles, correspondent banking, identification of beneficial owners of accounts, and regulation of non-bank financial institutions.
Click here to view the news release issued after the Washington Plenary meeting.

Terrorist Financing Documents

FATF Nine Special Recommendations on Terrorist Financing (30 October  2001)

Interpretative Notes to the Special Recommendations

Guidance Notes for the Special Recommendations on Terrorist Financing and the Self-Assessment Questionnaire  (27 March 2002)

Guidance for Financial Institutions in Detecting Terrorist Financing(24 April 2002)