Combating Financing Terrorism and United Nations

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 The United Nations Security Council (UNSC) Counter-Terrorism Committee (CTC) works to address the threat of terrorism. The CTC's work includes:

 

·         Criminalizing terrorist offenses

·         Strengthening international cooperation

·         Countering the use of new and emerging technologies

·         Addressing the threat of foreign terrorist fighters

·         Promoting a whole-of-society approach

·         Law enforcement

·         Integrating gender into counter-terrorism

 

The CTC also calls upon states to prohibit and prevent incitement to commit acts of terrorism. The resolution encourages states to take steps in accordance with their obligations under international law, including international human rights law, refugee law, and humanitarian law.

National obligations to counter terrorist financing are set out in the existing international framework. With the intensification of the terrorist threat over the recent years and the concurrent evolution of terrorist financing typologies, the UN Security Council has adopted additional resolutions, often under Chapter VII, to address new avenues of terrorist financing, including by targeting the nexus between terrorists and organized crime groups and tackling fundraising through kidnapping for ransom. In Resolution 2462 (2019), the Security Council expressed concern at the flow of funds to terrorists and the need to suppress all forms of terrorist financing.  

In order to be effective, efforts to counter the financing of terrorism need to rely more on financial intelligence sharing between countries and enhanced coordination between the public and private sector. In addition, public sector financial regulators and private sector regulated and semi-regulated entities, including banks, often carry information that could benefit the other if shared through better and timely channels. In order to be more effective, targeted financial sanctions and other Financial Action Task Force (FATF) mandatory measures need to be buttressed with risk assessment and typology identification, enhanced intelligence sharing and better cooperation between the public and private sectors. Full adherence to international human rights standards and due process issues is also required.  

The Global Programme on Detecting, Preventing and Countering the Financing of Terrorism (CFT Programme) was launched in 2020 to step up UNOCT/UNCCT efforts in this area as mandated by the General Assembly’s Global Counter-Terrorism Strategy and its review resolutions, and the Security Council, including through resolutions 1373 (2001) and 2462 (2019).

Under this global programme, UNOCT-UNCCT provides assistance to Member States in a sequential, coordinated and results-oriented manner on a variety of CFT topics. 

The United Nations Security Council (UNSC)  Resolution 1373

The United Nations Security Council (UNSC) adopted Resolution 1373 on 28 September 2001 in response to the terrorist attacks in the United States of America on 11 September 2001. Resolution 1373 requires, as a UN Member State, to suppress terrorism by implementing targeted financial sanctions in relation to persons involved in terrorist activities. 

The Counter-Terrorism (UNSCR 1373) sanctions regime imposes the following sanctions measures

Restrictions on providing assets to designated persons or entities

It is prohibited to directly or indirectly make an asset available to a designated person or entity.

Restrictions on dealing with the assets of designated persons or entities (requirement to freeze assets)

It is prohibited to use or deal with an asset, or allow or facilitate another person to use or deal with an asset owned or controlled by a designated person or entity (the assets are ‘frozen’ and cannot be used or dealt with). The prohibition on ‘dealing’ with assets includes using, selling or moving assets. ‘An 'asset' includes an asset or property of any kind, whether tangible or intangible, movable or immovable.

 

The UNSCR 2462


On March 28, 2019  the Member States of the United Nations Security Council adopted a new resolution, UNSCR 2462, recognizing the essential role of the FATF in setting global standards to combat money laundering, terrorist financing, and weapons of mass destruction (WMD) proliferation financing.

The resolution urges all countries to implement the FATF Recommendations, including the standards to assess the specific terrorist financing risks they face. FATF’s work to understand the evolving methods used to raise, use and move funds in support of terrorism is fundamental to develop effective responses at national and international level. In addition, the resolution requires countries to criminalize terrorist financing in line with FATF Recommendation 5, recognizing that countries must criminalize the financing of a terrorist act but also the financing of support to terrorist organizations and individual terrorists for any purpose, even in the absence of a link to a specific terrorist act. This is crucial; financing a single terrorist act may not be a large sum of money, but maintaining and evolving an entire terrorist organization requires significant financial resources.


Happy reading


Those who read this, alos read:


1. Combating Financing Terrorism

2.India's CFT and UNSCRs

3. India's CFT - Programme Implementation

Formerly Faculty for Finance & Associate Dean, IBS-Kochi MBA (Banking & Finance – CUSAT);CFA. Accredited Management Teacher from CME of AIMA, Delhi has been in Management Education from 1988. Exposure is in the field of Mutual Funds, Market Research, Project Report preparation & evaluation, Advertising & NGO Activities. This Chief Manager, UTI Asset Management Co Pvt. Ltd(1992-2003), Mumbai. Undergone training in Case Study method of teaching under Mr. Trevor Williams and Mr. Scott M Andrews conducted by the ECCH, UK . Published Books & Book Review, Series of academic articles and maintains a column on MFs under "Fund scan" in Business Manorama since January 2007,Contributes "Portfolio Doctor" column for 'Sampadyam' a wealth mgt publication in Malayalam from manorama group since February 2007, Listed her case studies at asiacase.com.Presented papers in national & international conferences on Mutual Funds. Faculty Member @ ASIET, Kalady from 2010 to June 2019. Dean @ SNGIST, N Paravur, Ernakulam from Sep 2019 -Jan 2021, I continue my efforts to spread the knowledge in area of Finance and contribute to Management Education

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