Terror groups are based globally. Often such groups have different branches in different countries. They may also have various other supporters. In order to allow such groups to fulfil their aims, it is vital for funding to be given to them. This is often done through disguising such funds as legitimate money and transferring it to such groups. It is vital that Financial Law Services combat this.
The role Financial Law Services play is vital. The reason for this is that terrorist financing is often conducted through legitimate financial institutions. It is the responsibility of Financial Law Services to regulate such financial institutions. Therefore Financial Law Services must regulate this area.
If Financial Law Services places obligations on financial institutions to assess each fund that passes through its system and to do so before the passage of such funds, then at the very lease Financial Law Services will have been successful in mitigating the risks of terrorist financing through financial institutions. This purpose will be furthered by the imposition of penalties on those who permit such funds to pass through their system. It is this feature of Financial Law Services which will ensure the success of law against terrorist financing.
As well as placing obligations on financial institutions, Financial Law Services must restrict the activities of terrorists. For example, freezing orders on the accounts of known terrorists or other restrictions on such persons’ accounts.
However, regulation of this branch by Financial Law Services needs to balance the need to regulate financial services to prevent terrorist funding and the right to property. A person should be entitled to do as he wishes with his property. This is often a difficult balance to strike.
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