Case Studies. Jeremy discussed digital fraud, the growth of DeFi decentralised …. Skip to content. October 13, St Paul's Chambers. What is Money Laundering? What is Terrorist Financing? The terrorist financing process involves gathering, storing, transferring and, finally, using that money Money Laundering and Terrorist Financing In both cases, funds are being withheld and deliberately hidden from authorities, and the techniques used in both money laundering and terrorist financing are very similar.
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St Paul's Chambers October 26, Jeremy Barnett October 22, St Paul's Chambers October 18, Find a Barrister. QCs Head of Chambers. This way, drug traffickers circumvent the authorities and enjoy the benefits of their criminal actions. Therefore, its main intention is to hide illicit money for the sole purpose of producing more money.
In turn, financing terrorism is not aimed at hiding money produced illegally , but rather at finding funds to finance criminal acts to intimidate a State or a population through fear, violence and coercion. The main difference between money laundering and terrorism financing is the origin of the funds. On one hand, financing terrorism consists of collecting capital to carry out terrorist activities. Money laundering, on the other, refers to a process used by a criminal to make his illicit funds appear legal.
Thus, terrorism financing raises money for illegal political purposes, but the source of those funds is not necessarily illegal. Terrorists can obtain funding through government sponsors, corporate contributions, donations, and even legitimate business activities.
Of course, they also rely on illegal businesses, such as organized crime, smuggling or evasion. In contrast, money laundering always involves an illegal source of funds, as its intention is not collection but accumulation. Based on the foregoing, it can be concluded that the life cycle of one and the other is also different.
Money laundering operates in a cyclical manner: the money collected by drug trafficking is introduced into the economy, hidden in various transactions and then reincorporated into the financial system. This money, once it looks legitimate, is reused to finance further illegal actions that help generate more illicit money, thus repeating the same "laundering" process. In terrorism financing, the life cycle is linear: funds are raised, placed in the economic system, and eventually hidden and integrated into the financial system so that they can then be used for terrorist purposes.
It is important that Ireland, as a small, open economy with a thriving financial services industry, is an active participant in preventing its financial system from being used for money laundering and terrorist financing purposes. Money laundering involves: an underlying, profit-making crime e.
The Three Stage Process Although Money laundering is a single process it can be broken down into three stages Placement - The placement stage is the first stage in the process whereby the cash proceeds of criminal activity enter into the financial system. Layering - The second stage in the process is the layering stage. This stage is often the most difficult in the process and can involve the international movement of the funds.
The overriding objective with this stage of the process is to distance the illicit money from its source. This objective is achieved by adding layers of financial transactions to thwart the audit trail so as to cut the link with the original crime.
Integration - The final stage of the money laundering process. Drug trade, weapon smuggling, kidnapping for ransom. While a money laundering scheme is usually circular and the money eventually ends up with the person who generated it, a terrorist financing process is typically linear, and the money generated is used to propagate terrorist groups and activities.
Generally speaking, proliferation is the spread of nuclear, radiological, chemical or biological weapons; their means of delivery such as missiles, rockets and other unmanned systems, as well as related materials, such as WMD-sensitive materials, equipment and technology.
If appropriate safeguards are not established, maintained and enforced sensitive materials, technology, services and expertise can become accessible to individuals and entities seeking to use them in WMD programmes. They can also become accessible by terrorists who are pursuing chemical, biological, radiological or nuclear CBRN capabilities.
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