Yesterday, I taught you money laundering. Today, I am teaching you terrorist financing. There is very big relationship between money laundering and terrorist financing. So, if you did not study money laundering topic, first read this at here.
Terrorist financing means to supply money for terrorism. Terrorism means to kill innocence people with bombs, guns and other dangerous weapons. It is politically motivated violence committed against the civilian population. Cost of terrorist's raw material is very high. So, they take the help of their supporters. Some earn illegal money and then it is transfer to bank or other financial institution for converting it in to white money. Now, same money is used for operating business in different area. These businesses are the source of supplying the fund for terrorism.
Following are the business which may be associates in terrorist financingTerrorist financing means to supply money for terrorism. Terrorism means to kill innocence people with bombs, guns and other dangerous weapons. It is politically motivated violence committed against the civilian population. Cost of terrorist's raw material is very high. So, they take the help of their supporters. Some earn illegal money and then it is transfer to bank or other financial institution for converting it in to white money. Now, same money is used for operating business in different area. These businesses are the source of supplying the fund for terrorism.
a) Investment/trust companies;
b) Import/export businesses
c) money services businesses (MSB), including foreign currency exchange dealers;
d) telecommunications businesses
e) car sales/rentals.
But before taking any action against them suspicious activities are searched. Wikipedia's content Terrorist financing provides its list
1 Account transactions that are inconsistent with past deposits or withdrawals such as cash, cheques, wire transfers, etc.
2. Transactions involving a high volume of incoming or outgoing wire transfers, with no logical or apparent purpose that come from, go to, or transit through locations of concern, that is sanctioned countries, non-cooperative nations and sympathizer nations.
3. Explainable clearing or negotiation of third party cheques and their deposits in foreign bank accounts.
4. Structuring at multiple branches or the same branch with multiple activities.
5. Corporate layering, transfers between bank accounts of related entities or charities for no apparent reasons.
6.. Wire transfers by charitable organisations to companies located in countries known to be bank or tax havens.
7. Lack of apparent fund raising activity, for example a lack of small cheques or typical donations associated with charitable bank deposits.
8.Using multiple accounts to collect funds that are then transferred to the same foreign beneficiaries
9. Transactions with no logical economic purpose, that is, no link between the activity of the organization and other parties involved in the transaction.
10.Overlapping corporate officers, bank signatories, or other identifiable similarities associated with addresses, references and financial activities.
11.Cash debiting schemes in which deposits in the US correlate directly with ATM withdrawals in countries of concern. Reverse transactions of this nature are also suspicious.
12.Issuing cheques, money orders or other financial instruments, often numbered sequentially, to the same person or business, or to a person or business whose name is spelled similarly.
Comments