Terrorist Financing: A Global Effort
In the aftermath of the devastating terrorist attacks on September 11, 2001, in New York and Washington D.C., the international community came together to combat the scourge of terrorism. One critical aspect of this fight is the prevention of terrorist financing.
Executive Order 13224 and UN Resolution 1373
On September 25, 2001, President Bush issued Executive Order 13224, which blocks property and prohibits transactions with individuals who commit, threaten, or support terrorism. The Office of Foreign Assets Control maintains a list of individuals prohibited from transacting in the US.
The UN Security Council (UNSC) swiftly followed suit on September 28, adopting Resolution 1373, which requires member states to implement measures to prevent and counter terrorist activities, including the financing of terrorism. While implementation has been slow and uneven, many countries have criminalized terrorist financing, and international organizations such as the Financial Action Task Force (FATF) have played a crucial role in setting standards and promoting effective implementation.
The FATF’s Role
The FATF expanded its mandate to include terrorist financing in 2001, issuing eight special recommendations on the issue. These recommendations were later revised into the current 40 recommendations, which provide specific guidance to states on how to implement the requirement to criminalize terrorist financing.
Remaining Challenges
Today, a handful of countries remain reluctant to criminalize terrorist financing, including:
- Bhutan
- Botswana
- Uganda
Others are partially compliant, including:
- Bahrain
- Costa Rica
- Fiji
- Guatemala
- Hungary
- Madagascar
- Mauritania
- Mauritius
- Nicaragua
- Samoa
- Seychelles
- Slovenia
- Vanuatu
- Ukraine
Preventive Effects
The criminalization of terrorist financing has numerous preventive effects, including:
- Upstream prevention by restricting the ability of terrorist groups to raise funds
- Midstream prevention by preventing terrorists from acquiring the capabilities to prepare campaigns
- Downstream prevention by foiling and deterring terrorist operations through enhanced information sharing
Emerging Counterterrorism Financing Bodies
In recent years, international counterterrorism financing bodies have emerged or altered their mandates to combat the scourge of terrorist financing. Understanding these bodies and how they interact with each other and states is crucial in assessing their effectiveness at preventing terrorist financing.
Conclusion
As the world continues to grapple with this complex issue, it is clear that a global effort is necessary to prevent the financing of terrorism. By understanding the mechanisms in place and the challenges that remain, we can work towards a safer and more secure future for all.