FATF updates – renewing effort to tackle terrorism
A special three-session meeting to discuss tackling terrorist financing was organised by the Financial Action Task Force in reaction to the atrocities that have taken place in the last few months. Whilst the agenda focused on broader ways to tackle terrorist financing, the Islamic State of Iraq and the Levant and its financing were also covered.
The FATF concluded that it will develop a strategy to gain a greater understanding of terrorist financing and its changing environment, including creating more robust measures to combat terrorist financing and sharing information to help counter risks.
The FATF highlighted three key areas from the two-day meeting: 1. understanding the impact of recent action against ISIL, 2. improving the exchange of information and 3. strengthening the international standards and their implementation.
Understanding the impact of recent action against ISIL
It is the intention of the FATF to work with the United Nations, the Counter ISIL Financing Group, the Egmont Group and Interpol to draw an up-to-date picture of ISIL and its financing strategy. Moreover, they will instil risk indicators for ISIL financing that can be shared with the private sector in order to counter terrorist financing more effectively.
Improving the exchange of information
It was recognised that there is a need for better sharing of information between operational agencies, national and international authorities and the private sector. To initiate this, the FATF will conduct immediate analysis across all its members to gauge the level of understanding and the challenges faced when sharing information and ascertain how different countries are responding to those risks and challenges. The analysis will form part of a framework plan for more effective ways of sharing information between members and will help to ensure greater levels of consistency in implementing measures to prevent terrorist financing.
In order to overcome information sharing obstacles, the FATF will work with the Egmont Group to initiate more reliable and effective information sharing mechanisms. They will take immediate action to promote information sharing between governments, public bodies and authorities and the private sector.
Strengthening the international standards and their implementation
To ensure that their standards are robust, evolving according to current day and future risks and adhered to, FATF will conduct analysis of the 196 member jurisdictions. In addition, the FATF will initiate follow-up measures for countries for which have not criminalised terrorist financing.
All information will be covered in Q1 at CDMG.