Guidance Document On The Funding Of Terrorism

17th July 2020

The Financial Intelligence Analysis Unit (“FIAU”) has today published a Guidance Document on Funding of Terrorism, which builds upon and incorporates the 2018 ‘Guidance Note on Funding of Terrorism – Red Flags and Suspicious Activities’.

The salient features of this Guidance Document include:

• Insights and select findings from the 2019 Terrorism Financing Risk Assessment carried out by the National Co-ordinating Committee on Combating Money Laundering and Funding of Terrorism;
• Substantive information on emerging FT trends and typology-specific case studies and red flags;
• Case studies based on real cases analysed by the FIAU’s Intelligence Analysis Section.

This Guidance Document is split into three parts:

• Chapter 1 provides an introduction to the topic of FT, defines and sets out the activities that constitute FT, and provides an overview of Malta’s inherent vulnerabilities relating to the movement of funds;
• Chapter 2 explores different typologies and red flags associated with various products and services, and includes international case studies; and
• Chapter 3 contains red flags on emerging trends identified in Malta.

Subject persons play a key role in ensuring that the financial system and the services of professionals and certain designated businesses are not misused to fund terrorism. To this end, subject persons are hereby reminded that should they know, suspect or have reasonable grounds to suspect that a transaction may be linked to funding of terrorism, they must submit a report to the FIAU as set out under Regulation 15(3) of the PMLFTR.

Click here to access the Guidance Document.