Benefits of Terrorist Financing

The main benefits of countering terrorist financing are the disruption and deterrence of terrorist activities. In addition to preventing terrorist activities, countering terrorist financing is essential to ensure the stability of financial systems, as money laundering aimed at financing terrorist activities threatens their stability. The integrity of any financial system risks not being trusted by the public if it is unable to detect illegal activities.

The Benefits of Terrorist Financing

There are major drawbacks to society that CTF imposes, including the very limited lack of privacy or anonymity in financial transactions. CTF policies require everyone using a financial system to disclose their privacy, allowing authorities to detect suspicious activity, including money laundering.

Impact on democracy and the rule of law

Terrorism also has a negative impact on human rights, democracy and the rule of law. Countering terrorist financing is at the heart of breaking up the modus operandi of terrorist groups. Terrorism without financing is not feasible. The terrorist networks cannot operate without the funds. Therefore, countering terrorist financing is directly about addressing the problem of terrorism which significantly undermines the values ​​enshrined in the UN Charter and other international legal instruments. These values ​​include:

• respect for human rights;
• the rule of law;
• rules for armed conflict and the protection of civilians;
• tolerance among peoples and nations; and
• (v) the peaceful resolution of conflicts.

Terrorist attacks have a direct impact on the ability of individuals in society to appreciate and enjoy a number of their basic and fundamental human rights – in particular their right to life, liberty and physical integrity. Terrorist activities often endanger security and peace, threaten economic and social development, undermine civil society/// and can even go so far as to destabilize governments. All of these factors negatively impact the ability of individuals in such a society to enjoy their fundamental rights and freedoms.

The fight against terrorism is a struggle to preserve the foundations of a democratic society, including faith in the rule of law, while ensuring the dignity and security of people everywhere.

CTF policies aimed at combating the flow of money linked to terrorism further strengthen institutions such as law enforcement. Since terrorism is closely linked to illicit activities such as money laundering, transnational organized crime, arms trafficking, drug trafficking, and the illicit transfer of biological, nuclear and chemical materials, strengthening the various institutions and agencies that combat terrorism, including countering its financial dimension, promotes the rule of law.

Furthermore, since international legal instruments have provisions, UN member states should have laws that directly deny terrorists financial support or safe havens, while also working together to bring suspected terrorists to justice. CTF encourages states to work together.

In countering terrorist financing, all stakeholders, including law enforcement, protect citizens directly or indirectly from harm (including life, limb and/or property). This promotes democratic governance and strengthens the independence of institutions, legislators and policy makers, and prevents the occurrence of acts aimed at instilling terror and fear among the population.

Terrorist financing as part of the fight against terrorism aims to promote peace, human dignity, tolerance and equality, while upholding universal values ​​that transcend national and individual differences.

Vulnerabilities of CTF

Since people value their privacy, the problem that CTF policy brings is a loss to society. The same can be said of the administrative and financial burden that comes with following up on the disclosures.

Because law enforcement implements CTF policies and procedures, the process implicitly involves coercion, force, or threats of force against individuals, citizens, and private enterprises. This therefore raises a moral dilemma, as the threat from one group (terrorists) is replaced by the threat of force by government agencies against everyone doing business and involved in business.

Finally, there is a risk that widespread financial surveillance can be abused by authorities. Once implemented, CTF policies can be abused by government agencies against individuals and groups by simply labelling people as “terrorists”. The powers arising from CTF policies can also be used by governments to discriminate against specific population groups or to target and persecute legitimate protest movements and political dissidents.

Final thoughts

The primary purpose of CFT is to disrupt and prevent terrorist activity. Another reason for CFT is that the use of the financial system by criminals engaged in money laundering and terrorist financing can jeopardize the stability of the financial system. If the financial system is unable to detect illegal activity, the public may lose confidence in its integrity. CFT also has significant social costs. The most serious of these is that CFT policies often reduce or eliminate privacy and anonymity in financial and other transactions for all members of society.