OKTRIZ

In October 2023, the Financial Action Task Force (FATF) released a report on the use of crowdfunding for terrorism financing. This report gives a detailed analysis of how terrorists and violent extremists utilize crowdfunding to fund their activities, emphasizing the types of crowdfunding that present the highest terrorism financing (TF) risks. The report's main role is to assist crowdfunding platforms in strengthening their risk management frameworks, improving their ability to identify and prevent misuse by terrorists and violent extremists, and ultimately safeguarding the integrity of the crowdfunding system. By highlighting how crowdfunding is exploited for TF, the report identifies policy gaps, new vulnerabilities, and emerging trends that the FATF Global Network can address in their anti-money laundering and counter-terrorism financing (AML/CFT) frameworks.

Refer HERE for the Report

Key Updates

This report is an important resource for crowdfunding platforms looking to implement risk-based approach processes:

Understanding Threats: 

The report helps platforms understand the specific threats posed by terrorists and violent extremists misusing crowdfunding for financing illicit activities. By identifying common indicators and methods used for such misuse, platforms can better assess and mitigate risks.

Risk Assessment: 

It provides valuable information for platforms to conduct comprehensive risk assessments. By analyzing the indicators and methods highlighted in the report, platforms can identify potential vulnerabilities and tailor their risk assessment processes accordingly.

Mitigation Strategies: 

Platforms can use the insights from the report to develop and implement effective mitigation strategies. This may include enhancing due diligence measures, implementing transaction monitoring systems, and establishing mechanisms for reporting suspicious activities.

Compliance with Regulations: 

Crowdfunding platforms are subject to various regulations and compliance requirements, including those related to anti-money laundering (AML) and counter-terrorism financing (CTF). The report helps platforms align their risk-based approach processes with regulatory expectations, ensuring compliance and reducing regulatory risks.

Industry Best Practices: 

The report serves as a reference for industry best practices in combating terrorism financing through crowdfunding. Platforms can benchmark their risk-based approach processes against the insights and recommendations provided in the report, thereby enhancing their effectiveness in addressing emerging threats.

HOW WE CAN HELP

At Oktriz, we offer a range of services to help platforms ensure a safe and secure environment for users and content. Our services include:

• Performing Review: We conduct in-depth reviews to assess visible, hidden, and residual risks associated with campaigns, ensuring transparency about their purpose, goals, and related parties.

• Content Monitoring: We closely monitor campaign content to identify and flag any hateful rhetoric, symbolism, or extremist material.

• Payment and Transaction Tool Assessment: We assist platforms in evaluating their current payment and transaction tools, identifying gaps, and providing suggestions for better alignment and security.

• Geographic Risk Assessment: We assess the geographic origins of crowdfunding campaigns and the risk posed by other regions exposed by the campaign to help platforms identify potential risks associated with conflict zones or areas operated by terrorists.

• Compliance Support: We support platforms in developing and enforcing terms of service and monitoring faremework to explicitly prohibit content related to terrorism or violent extremism, creating a safe environment for users.

• Training and Capacity Building: We provide training programs to equip platform staff and volunteers with the skills to identify and handle suspicious campaigns effectively, fostering long-term resilience.Crisis Response and Incident Management.

• Crisis Response and Incident Management: We assist platforms in developing response plans for addressing red flags and ensuring the timely reporting of Suspicious Transaction Reports (STRs), enabling swift action to mitigate risks and resolve incidents effectively.