The uphill battle against terrorism financing

This manifests itself in many ways, with some countries being used as potential conduits for the passage of such transactions and other illegal transactions. It creates a much bigger challenge for financial institutions that have an obligation to fight against terrorism financing (Counter-Terrorism Financing) as per regulatory requirements.

The fact that terrorism financing can either be through legitimate funds (personal donations from salary or business profit donations) or funds from criminal activities (e.g. drug money) becomes a challenge for financial institutions to distinguish the true source and purpose of funds.