This week’s Subject Matter is about the Crowdfunding for Terrorism Financing
On January 18, 2024, the Financial Action Task Force (FATF) hosted a webinar on Crowdfunding for Terrorism Financing. The webinar was focused on methods used by terrorists and violent extremists to raise funds through crowdfunding. It was also focused on the challenges & the best practices to identify & prevent potential terrorism financing. This webinar was based on the findings of the FATF report on crowdfunding, which showcased how terrorist misuse the crowdfunding platform.
The following risk indicators can help law enforcement recognise potential terrorist financing activity related to crowdfunding during their investigations.
1. The crowdfunding platform used hosts or enables other projects related to terrorism or violent extremism, or enables payments through unregulated financial institutions.
2. The crowdfunding campaign contains a lack of information about the purpose, goals and ultimate beneficiaries of the campaign, or the project description features hateful rhetoric or symbolism.
3. The project promoter withdraws funds immediately after receiving a donation, or their account receives a conspicuously large volume of transfers.
4. Donors take great efforts to obscure the source of funds, or are connected to terrorist organisations or other organisation with violent extremist views.
5. The campaign raises money for an organisation with links to conflict zones or neighbouring countries and receives unusually substantial donations.