COUNTERING THE FINANCING OF TERRORISM
Terrorist groups need money to sustain themselves and 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 business profits and charitable organizations, or from illegal activities including trafficking in weapons, drugs or people, or kidnapping.
Countering the financing of terrorism (CFT) is a highly complex endeavour that involves many different actors. We support Member States with a wide variety of responses, ranging from legislation and international policy, to operational level responses. Our legal support is primarily underpinned 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. We do this through the provision of specialised training on special investigation techniques, the freezing, seizing and confiscation of terrorist assets, and strengthening regional and international cooperation to counter the financing of terrorism.
Resolutions
UNODC works on the legal framework to counter 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, and developing the capacity of criminal justice and law enforcement officials.
Our team
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 a low number of reported suspicious transactions from banking and non-banking financial institutions; weak understanding of AML/CFT risks associated with newly arising technology, and the need for strengthening terrorist finance investigations.
We have had a long-standing partnership with Iraq since 2014 on responding to emerging terrorism financing threats and increasing the number of AML/CFT prosecutions and convictions in the country. With the aim of enhancing internal coordination and increasing the number of AML/CFT prosecutions and convictions, 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.
