Combating Financing of Terrorism

Combating Financing of Terrorism (CFT) refers to the wide-ranging policies and procedures intended to stop the money flow toward terrorist operations through financial channels. As a crucial part of Anti-Money Laundering (AML) efforts, CFT relies on recognizing, tracking, and reducing the dangers linked to financial payments that could potentially provide resources for terrorism. By closely following money trails and transaction patterns, regulators, financial institutions, and law enforcement agencies work to detect and disrupt the financing of terrorist groups. This coordinated approach across systems aims to impede terrorism by identifying and closing down their funding avenues.

Financial institutions and businesses subject to CFT regulations must implement due diligence processes, Know Your Customer (KYC) protocols, and transaction monitoring to detect and report suspicious activities. Regulatory bodies and international organizations provide guidelines and standards to enhance global cooperation in combating the financing of terrorism.

CFT measures contribute to the overall security and integrity of the financial system, aligning with international efforts to curb illicit financial flows and disrupt the financial networks supporting terrorism.