Global Anti-money Laundering Watchdog, FATF to Release ‘Comprehensive Analysis’ of Terrorist Financing

Ndubuisi Francis in Abuja

Global anti-money laundering watchdog,  Financial Action Task Force (FATF), is on the verge of publishing a ‘comprehensive analysis’ of terrorist financing risks, drawing from experiences in approximately 200 jurisdictions, AML Intelligence has revealed.

Nigeria,  one of the jurisdictions has been under FATF grey list for almost two years due to some lapses in its anti-money laundering and terrorist financing mechanisms.

The FATF President, Elisa de Anda Madrazo disclosed that the impending  move to publish a detailed analysis of terrorist financing was in response to the rising number of deaths from terrorism around the world.

Over 8,350 people were reportedly killed across the world by terrorists in 2023, indicating a 22 per cent increase compared to the preceding year .

The FATF president who spoke at a conference in Munich, Germany,  said by “turning off the money tap” and combatting terrorist financing, countries can “cut off the blood supply of terrorism.”

She added: “Terrorists need money – even small amounts – to prepare their attacks. And they do not announce their plans.

“The FATF is actively working to support countries to increase their investigative and prosecuting abilities, after identifying that less than a third of countries are investigating and prosecuting terror financing adequately.

“To improve this picture, this year the FATF will be releasing a comprehensive analysis of terrorist financing, compiling cases provided by our global network of more than 200 jurisdictions.

“This will equip countries to better avert terrorist attacks, and ensure the safety of their people.”

According to her, financial institutions such as banks must become a ‘first line of defence’ against terror plots.

She cited the example of last year’s Paris Olympics, when three terror plots were dismantled after France’s Financial Intelligence Unit “shared information with domestic and international partners which helped identify suspects”.

“This case highlights the critical role of countering the financing of terrorism to global security.

“Jurisdictions also need to work hand in hand with the private sector and civil society, to ensure effectiveness of their counter-terrorist financing efforts.

“So it is crucial that countries develop frameworks that allow intelligence to be shared efficiently, and leverage technology to help them do so,” she stressed.

Although Nigeria was greylisted by FATF in 2023,  has so achieved a significant milestone in its fight against money laundering and terrorist financing, securing upgrades on five key recommendations from the Global body.