Terrorist financing

How it is used

Almost always mentioned together with money laundering: AML/CFT stands for anti-money laundering and countering the financing of terrorism. Unlike laundering, the amounts can be small and the source can be legal, so banks focus on where the money goes. Suspicions are reported to the financial intelligence unit.

Example sentences

1. Our AML training also covers the warning signs of terrorist financing.

2. Small, frequent transfers to high-risk regions can be a sign of terrorist financing.

Common collocations

• terrorist financing risk
• combating terrorist financing
• AML/CFT
• counter-terrorist financing

Related terms

• money launderingHiding the criminal origin of money by moving it through banks, businesses or transactions so that it looks legal.
• AMLShort for anti-money laundering: the laws, controls and procedures that banks use to prevent, detect and report money laundering.
• suspicious transaction reportA confidential report that a bank must send to the national financial intelligence unit when it suspects that a transaction is linked to money laundering or terrorist financing.
• sanctionsRestrictions imposed by governments or international bodies that ban or limit financial and trade dealings with certain countries, companies or people.
• KYCShort for know your customer: the checks a bank makes to confirm a customer's identity, address and source of funds before and during the business relationship.

More terms: Regulation & Compliance

• compliance
• fraud
• regulator
• capital adequacy ratio
• Basel III
• PEP
• beneficial owner
• banking secrecy
• reserve requirement
• regulatory reporting