CFT (Countering The Financing Of Terrorism)

Counter-terrorist financing is closely linked to AML efforts but focuses specifically on preventing financial support for terrorist activities. While money laundering typically involves disguising the source of illicit funds, terrorist financing can involve both legitimate and illegitimate fund sources used for terrorist purposes. For accountants, CFT obligations often overlap with AML duties, requiring vigilance in identifying and reporting suspicious transactions that might be linked to terrorist activities. This includes monitoring for transactions involving high-risk jurisdictions, understanding client activities that might be vulnerable to terrorist financing, and being aware of current terrorist financing typologies.

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