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FATF report on terrorist financing risks

Header FATF report on terrorist financing risks.

Summary

FATF warns of evolving terrorist financing tactics and urges countries to strengthen risk assessments and enforcement in latest global report.

08/07/2025

Since its last major update in 2015, the FATF has made countering the financing of terrorism a top priority. Terrorist groups continue to adapt rapidly, exploiting both traditional and digital financial systems to fund their operations across the globe.

The FATF’s latest report reveals that, despite ongoing international efforts, 69% of countries assessed in its most recent round of mutual evaluations show significant or structural deficiencies in investigating, prosecuting, and convicting terrorist financing cases. While financial transparency has improved in some areas, terrorists still exploit formal financial services, such as bank accounts, wire transfers and prepaid cards, alongside more opaque mechanisms including shell companies, front businesses, and sham charities.

To help jurisdictions strengthen their counter-terrorist financing responses, the report identifies emerging terrorist financing trends, enhances understanding of risk factors, and shares actionable insights for risk management and compliance. It also encourages academic research in this field.

FATF urges countries to regularly update their risk assessments to keep pace with shifting terrorist financing tactics.