Revised guide on managing threats from terrorist funding - FATF's updated strategies revealed
In a recent article published in Money Laundering Bulletin, Jonah Anderson and Phil Taylor, partners at White & Case, delve into the key takeaways from the Financial Action Task Force (FATF)'s 2025 Comprehensive Update on Terrorist Financing Risks.
Anderson, who specializes in White Collar/Investigations, Tax, Energy, Financial Institutions, Technology, Life Sciences and Healthcare, and Taylor, with a focus on White Collar/Investigations, collaborate to provide valuable insights into the current state of terrorist financing risks.
The FATF's report underscores the ongoing threat posed by terrorist groups that adapt and exploit the international financial system to fund their activities. Despite efforts over the past decade, 69% of assessed jurisdictions still have major or structural deficiencies in effectively investigating, prosecuting, and convicting terrorist financing cases, indicating a significant enforcement gap globally.
The report emphasizes the importance of adopting an evidence-based understanding of terrorist financing risks rather than assumptions, to avoid ineffective or disproportionate measures and potential breaches of international law. Terrorist financing encompasses not only funding terrorist acts but also financing individual terrorists and terrorist organizations intentionally or with knowledge of their intention to commit terrorist acts.
The FATF maintains that its Standards, comprising 40 Recommendations, provide a comprehensive technical framework for countries to implement effective anti-money laundering (AML) and counter-terrorist financing (CFT) measures tailored to local risks, following a risk-based approach.
The overall trend points to the evolving threat landscape, requiring jurisdictions to continuously update and enhance their counter-terrorist financing strategies and cooperate internationally.
It is worth noting that the probability of processing funds related to terrorism is lower than the laundering of the proceeds of crime. However, the risk to innocent lives and the damage to society from terrorist financing is severe, making it a critical issue that demands attention.
For further information about this topic, local media contacts can be consulted. White & Case, with service areas in Western Europe and the United Kingdom, continues to contribute to the discourse on these important matters.
References:
- Financial Action Task Force (FATF). (2025). Comprehensive Update on Terrorist Financing Risks. Retrieved from FATF website
- Anderson, J. & Taylor, P. (2022). Key Takeaways from the FATF's 2025 Report on Terrorist Financing Risks. Money Laundering Bulletin. Retrieved from Money Laundering Bulletin website
- Financial Action Task Force (FATF). (2012). FATF Standards. Retrieved from FATF website
- The FATF's 2025 Comprehensive Update on Terrorist Financing Risks, as outlined by Jonah Anderson and Phil Taylor, partners at White & Case, highlights the persistent threat of terrorist financing in the global financial industry.
- Anderson and Taylor, specialists in various fields including White Collar/Investigations, Tax, Technology, and Life Sciences, provide valuable insights into the current state of terrorist financing risks, emphasizing the ongoing threat posed by adaptive terrorist groups.
- The FATF report reveals that despite efforts over the past decade, many assessed jurisdictions still face major or structural deficiencies in effectively prosecuting and convicting terrorist financing cases, indicating a significant global enforcement gap.
- The FATF emphasizes the importance of grounding terrorist financing risk assessments in evidence rather than assumptions, to avoid disproportionate measures and potential legal breaches.
- Terrorist financing involves not just funding terrorist acts, but also financing individual terrorists and terrorist organizations with knowledge of their intent to commit such acts.
- The FATF mobile app offers a comprehensive technical framework for countries to implement effective anti-money laundering (AML) and counter-terrorist financing (CFT) measures, tailored to local risks, following a risk-based approach.
- As the threat landscape evolves, jurisdictions are encouraged to continuously update and strengthen their counter-terrorist financing strategies, while fostering international cooperation.
- While the risk of processing funds connected to terrorism might be lower than the laundering of crime proceeds, the potential harm to society from terrorist financing is severe, making it a critical issue.
- Anderson and Taylor's article in Money Laundering Bulletin offers further details about the FATF's 2025 report and its implications for the finance, law, and cybersecurity sectors, among others.
- Local media contacts, in addition to the Money Laundering Bulletin and FATF websites, can provide additional information about this topic.
- In a wider context, White & Case, with service areas in Western Europe, the United Kingdom, and other regions, continues to contribute valuable insights to the discussions surrounding AML, CFT, and the broader challenges within the finance and law industries, as well as personal finance, banking and insurance, fintech, data and cloud computing, technology, education, career development, general news, crime and justice, sports, and sports betting.
