COMBATING TERRORIST FINANCING

Terrorist groups need money to sustain themselves and to carry out terrorist acts. Terrorist financing encompasses the means and methods used by terrorist organizations to finance their activities. This money can come from legitimate sources, for example from profits from businesses and charitable organizations. But terrorist groups can also get their financing from illegal activities such as trafficking in weapons, drugs or people, or kidnapping for ransom.

Combating terrorist financing (CFT) is a highly complex endeavour that involves many different actors. We support Member States with a wide variety of responses, ranging from legislation, international policy to operational level responses. Our legal support is underpinned in particular by the International Convention for the Suppression of the Financing of Terrorism (1999).

We also develop the capacity of criminal justice and law enforcement officials to investigate, prosecute and adjudicate terrorist financing through the provision of specialized training on issues related to special investigation techniques, freezing, seizing and confiscating terrorist assets, and strengthening regional and international cooperation against the financing of terrorism.

Resolutions

UNODC works on the legal aspects of countering the financing of terrorism, including promoting the ratification of the relevant universal legal instruments, in particular the International Convention for the Suppression of the Financing of Terrorism (1999), and the implementation of these international standards. This entails reviews of domestic legislation to ensure proper criminalization of offences related to the financing of terrorism and legislative drafting, developing the capacity of criminal justice and law enforcement officials to investigate, prosecute and adjudicate terrorist financing through the provision of specialized training on issues related to special investigation techniques, freezing, seizing and confiscating terrorist assets, and strengthening regional and international cooperation against the financing of terrorism.

Projects

Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML)

Our team of the Global Programme against Money Laundering, Proceeds of Crime and the Financing of Terrorism (GPML) also implements UNODC’s capacity-building work on CFT and maintains a repository of resources on the topic.

Strengthening Iraqi Institutions to Counter the Financing of Terrorism

Since 2015, Iraq has achieved significant progress on its AML/CFT systems. Following the passage of the expanded national AML/CFT legislation, Iraqi authorities re-established their financial intelligence unit (FIU), known as the Anti-Money Laundering/Countering Financing of Terrorism Office. Iraq is a member of the Middle East and North Africa Financial Action Task Force (MENAFATF), and recently became an observer in the Egmont Group of FIUs. Iraq is in the process of conducting its national risk assessment on money laundering and terrorism financing using the World Bank methodology and is pursuing full Egmont Group membership. However, Iraq still faces challenges regarding low number of suspicious transactions reports from banking and non-banking financial institutions; weak understanding of AML/CFT risks associated with newly arising technologies and need for strengthening terrorist finance investigations and disruptions. 
 
We have a long-standing partnership with Iraq since 2014 on responding to the emerging terrorism financing threats and increasing the number of AML/CFT prosecutions and convictions in Iraq.  Aiming to enhance the internal coordination and increase the number of AML/CFT prosecutions and convictions in Iraq, we have been supporting the newly established independent Iraqi Financial Intelligence Unit through capacity building initiatives, strengthening its cooperation with its regional and international counterparts and supporting its efforts to join EGMONT Group.
 

The project aims to strengthen key Iraqi institutions involved in countering the financing of terrorism (CFT) and support inter-agency cooperation through mentorship and training to representatives from a variety of competent Iraqi authorities, including the central bank of Iraq (CBI) Supervision Department, AML/CFT Office, Ministry of Interior, National Intelligence Service, and Judiciary Council. We are supporting Iraq in addressing the current challenges related to investigations, prosecution and adjudication of money laundering and terrorism financing offences as well as identifying the needed efforts for strengthening international cooperation in money laundering and terrorism financing offences.

Resolutions
UNODC works on the legal aspects of countering the financing of terrorism, including promoting the ratification of the relevant universal legal instruments, in particular the International Convention for the Suppression of the Financing of Terrorism (1999), and the implementation of these international standards. This entails reviews of domestic legislation to ensure proper criminalization of offences related to the financing of terrorism and legislative drafting, developing the capacity of criminal justice and law enforcement officials to investigate, prosecute and adjudicate terrorist financing through the provision of specialized training on issues related to special investigation techniques, freezing, seizing and confiscating terrorist assets, and strengthening regional and international cooperation against the financing of terrorism.