Thursday 18 February 2016

The link between Terrorism & a lack of adequate Financial Crime controls

Financial Crime is a hot topic in today's society. From terrorism financing to fraud to anti - money laundering, it is a massive concern in every jurisdiction across the world.

Terrorist organizations like Al- Qaeda, ISIS, Al -Shabaab and Boko - Haram have become a scourge all over the world. The close to 300 schoolgirls kidnapped by the Boko - Haram group are still unlocated somewhere in the Sambisa forest in Northern Nigeria, the latest massacre of several people in a musical concert in Paris and the attack of a large number of people in the West gate shopping mall in Kenya and several other more recent and deadly attack carried out by this groups.

There has been a multi- country approach to dealing with this issue as various counter – terrorist units have been set up to share intelligence and coordinate military actions, however asfar as preventing the financing of terrorism is concerned, organizations and businesses all over the world must serve as the first line of defense by ensuring they thoroughly identify their customers and verify their identities as these would prevent suspect individuals from infiltering the system in the first place.

Every organization must maintain a robust KYC & AML processes as suspect individuals can easily change their names and obtain new identification papers; suspect corporate entities can often change their identities even more easily; and in any case accounts can be opened and manipulated through front men.

The question now is how long would we continue to witness this attacks, as practical solutions are still not as effective as they should be.

For more information on this topic or any other related subject, you are most welcome to get in touch with me via email; contact@emgfraudconsulting.co.uk