Financial Crime and Terrorism Financing Rampant in Palestinian Territory Under Occupation

Background

The occupied Palestinian territory has been plagued by financial crime and terrorism financing, with authorities struggling to combat these illicit activities despite efforts to establish a robust anti-money laundering/combating the financing of terrorism (AML/CFT) regime.

Efforts to Combat Financial Crime and Terrorism Financing

According to experts, the Palestinian Authority has made significant strides in establishing a legal framework to combat money laundering and terrorist financing crimes since 2004. The Financial Follow-up Unit, established in 2012, has been granted all the required powers of Financial Intelligence Units, while the National Committee for Combating Money Laundering and Financing Terrorism has played a vital role in issuing policies and plans to respond to the outcomes of the National Risk Assessment process.

Challenges Persist

However, despite these efforts, numerous challenges persist, mainly due to political factors that have hindered the preparation and conduct of mutual evaluation processes. The Palestinian Authority’s AML/CFT procedures have not been subject to any previous mutual evaluation process by the Middle East and North Africa Financial Action Task Force (MENAFATF), making it a critical issue that has rarely been addressed in academic research.

Study Highlights Importance of Addressing Challenges

A recent study conducted by Murrar Firas, Deputy Director of the Financial Follow-up Unit and Instructor at the Arab American University, highlights the importance of addressing these challenges to effectively combat financial crime and terrorism financing in the occupied Palestinian territory. The author notes that Palestine’s AML/CFT efforts have not received adequate attention from researchers and policymakers, making this study a crucial contribution to the field.

Research Findings

The research was published in the Journal of Money Laundering Control earlier this year and highlights the need for continued efforts to strengthen the institutional framework and legislative framework to combat financial crime and terrorism financing. The author acknowledges the cooperation and support provided by Mr. Wael Lafi, Director of the Financial Follow-up Unit, and Ms. Aseel Alqadi, head of international relations at the unit.

Implications

The study’s findings have significant implications for policymakers, researchers, and practitioners working to combat financial crime and terrorism financing in the region. As the occupied Palestinian territory continues to face numerous challenges, addressing these illicit activities is critical to maintaining stability and security in the region.

• Addressing financial crime and terrorism financing requires a robust AML/CFT regime.
• The Palestinian Authority’s efforts have been hindered by political factors that have prevented mutual evaluation processes.
• Strengthening the institutional framework and legislative framework are crucial for combating financial crime and terrorism financing.
• The study highlights the need for continued attention from researchers and policymakers to combat these illicit activities.