FATF has updated G20 on its members’ laws to prevent terrorist finance. It conducted a survey of 194 jurisdictions to assess the extent to which their laws made it a criminal offence to finance terrorism, and whether they use targeted financial sanctions to freeze the assets of terrorists and their financiers. Its review had mixed findings:

  • almost all jurisdictions have criminalised terrorist financing and 33 jurisdictions have obtained convictions, and over 90% of jurisdictions have a legal framework in place to implement targeted financial sanctions;
  • 27 jurisdictions have updated their laws to criminalise the financing of travel by foreign terrorist fighters alongside 11 which had already criminalised this activity. Several more are reviewing what changes are needed; and
  • many jurisdictions implement United Nations targeted financial sanctions too slowly and two-thirds are not making practical use of targeted financial sanctions, which limits the effectiveness of these measures.
  • FATF is now:
  • encouraging individual jurisdictions to take action;
  • updating its Recommendations to require action against the financing of foreign terrorist fighters and preparing guidance to help criminalise terrorist financing and to facilitate international cooperation to freeze terrorist assets; and
  • working to improve understanding of the terrorist financing threat.

(Source: FATF Updates on Terrorist Finance)