Summary ¦ FATF Webinar ¦ Comprehensive Update on Terrorist Financing Risks
Summary of the FATF webinar on terrorist financing risks held on July 22, 2025
The webinar centered on the release and discussion of a comprehensive update on terrorist financing (TF) risks, marking the first significant review since 2015. The session provided a detailed examination of the evolving landscape of terrorist financing, highlighting how the methods, channels, and risks have shifted over the past decade. It aimed to inform a broad audience, including policymakers, law enforcement officials, private sector representatives, academics, and civil society actors, about current trends and emerging threats in order to strengthen collective efforts against terrorist financing.
During the webinar, it was emphasized that terrorist financing risks are influenced by a range of contextual factors that vary across different regions and timeframes. These factors include territorial control by terrorist groups, which enables them to engage in activities such as extortion and exploitation of natural resources. Political instability, porous borders, informal economies, and governance weaknesses also play critical roles in shaping how terrorist organizations access and manage financial resources. The discussion underscored that the financial needs and opportunities for terrorist groups differ significantly depending on their size, structure, and operational reach, ranging from large transnational networks to small cells or lone actors. Importantly, the webinar highlighted that terrorists rarely rely on a single method but instead combine multiple channels and tactics to finance their activities.
The session further explored the diversification and technological sophistication of terrorist financing methods. While traditional cash-based transactions and informal transfer systems such as Hawala remain widespread — particularly in conflict zones and areas with limited financial infrastructure — the use of digital technologies is growing rapidly. Terrorists increasingly exploit virtual assets like cryptocurrencies, online gaming platforms, and social media for fundraising and moving funds across borders anonymously and quickly. This shift presents new challenges for detection and prevention efforts, as attackers adopt advanced operational security measures including mixers, decentralized exchanges, and privacy coins to evade scrutiny.
Throughout the discussion, it was clear that the geographic context profoundly shapes terrorist financing patterns. In some regions, such as parts of sub-Saharan Africa, weak governance and ongoing conflicts create fertile ground for cash-based financing through illicit trade and local taxation by armed groups. Meanwhile, in more developed financial environments or diaspora communities, terrorists may rely more on microfinancing strategies sourced from legal income or small-scale criminal activities, often facilitated by technology-enabled platforms. The concept of geography itself is evolving as the digital realm effectively erases physical borders, allowing terrorist financiers to operate globally with increased anonymity.
The webinar also addressed significant challenges in countering terrorist financing. Traditional methods often escape detection due to their informal nature and operation outside regulated financial systems. Conversely, new technologies introduce complexities by providing anonymity and sophisticated means of obfuscation. Furthermore, there was concern about the exploitation of humanitarian aid channels and non-profit organizations by terrorists. While robust CFT measures are crucial, excessive or poorly targeted controls risk disrupting legitimate humanitarian operations, raising ethical and legal considerations around proportionality and human rights.
Recommendations shared during the webinar focused on the importance of maintaining updated national risk assessments that reflect the dynamic nature of TF threats and local realities. Harmonizing legal frameworks internationally was highlighted as essential to close regulatory gaps exploited by terrorists in cross-border financing schemes. Effective information sharing and cooperation among law enforcement agencies, financial intelligence units, private sector entities, and international bodies were emphasized as key to disrupting terrorist financing networks. The role of public-private partnerships was repeatedly underscored to enhance detection capabilities, raise awareness of emerging risks, and promote coordinated responses.
In particular, the private sector’s role was portrayed as indispensable for combating terrorism financing. Financial institutions and virtual asset service providers are on the front lines of detecting suspicious activity. The webinar illustrated how terrorist groups use virtual asset platforms for fundraising campaigns—often covertly supporting detainees or operatives — and how small unregulated exchanges facilitate conversion between cash and digital currencies. Despite advances in blockchain tracing technologies and law enforcement interventions, terrorist financiers continue to adapt their tactics to improve operational security.
Looking ahead, the webinar conveyed that terrorist financing will likely continue to evolve through a combination of traditional cash-based methods and innovative technological tools. The increasing intersection between organized crime and terrorism financing was noted as a complicating factor that will require enhanced investigative capacities. Additionally, emerging global challenges such as resource scarcity driven by conflict or climate events may heighten regional vulnerabilities to exploitation by terrorist groups through coercion or looting.
Ultimately, the webinar reinforced that addressing these complex threats demands a sustained commitment to risk-based strategies informed by up-to-date intelligence and an understanding of local contexts. Multi-sectoral cooperation across jurisdictions is essential for maintaining pace with evolving terrorist financing techniques while balancing the need to protect legitimate economic activities and humanitarian efforts.
Dive deeper
- FATF Report ¦ Comprehensive Update on Terrorist Financing Risks ¦ Link
- FATF Webinar ¦ Comprehensive Update on Terrorist Financing Risks ¦ Link (YouTube)
- FATF Webinar ¦ Comprehensive Update on Terrorist Financing Risks (French Interpretation) ¦ Link (YouTube)
