Terrorism financing in the context of "Central banking"

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⭐ Core Definition: Terrorism financing

Terrorism financing is the provision of funds or providing financial support to individual terrorists or non-state actors.

Most countries have implemented measures to counter terrorism financing (CTF) often as part of their money laundering laws. Some countries and multinational organisations have created a list of organisations that they regard as terrorist organisations, though there is no consistency as to which organisations are designated as being terrorist by each country. The Financial Action Task Force on Money Laundering (FATF) has made recommendations to members relating to CTF. It has created a Blacklist and Greylist of countries that have not taken adequate CTF action. As of 24 October 2019, the FATF blacklist (Call for action nations) only listed two countries for terrorism financing: North Korea and Iran; while the FATF greylist (Other monitored jurisdictions) had 12 countries: Pakistan, Bahamas, Botswana, Cambodia, Ghana, Iceland, Mongolia, Panama, Syria, Trinidad and Tobago, Yemen, and Zimbabwe. In general, the supply of funds to designated terrorist organisations is outlawed, though the enforcement varies.

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Terrorism financing in the context of Central bank

A central bank, reserve bank, national bank, or monetary authority is an institution that manages the monetary policy of a country or monetary union. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Many central banks also have supervisory or regulatory powers to ensure the stability of commercial banks in their jurisdiction, to prevent bank runs, and, in some cases, to enforce policies on financial consumer protection, and against bank fraud, money laundering, or terrorism financing. Central banks play a crucial role in macroeconomic forecasting, which is essential for guiding monetary policy decisions, especially during times of economic turbulence.

Central banks in most developed nations are usually set up to be institutionally independent from political interference, even though governments typically have governance rights over them, legislative bodies exercise scrutiny, and central banks frequently do show responsiveness to politics.

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LINKED FROM (PARENTS)
← Central bank ← Monetary authority ← Central banking ← Central banks
LINKS TO (CHILDREN)
Terrorist → Non-state actor → Money laundering → Terrorist organisation → Financial Action Task Force on Money Laundering → FATF Blacklist → FATF blacklist → North Korea → Iran → FATF blacklist → The Establishment (Pakistan) → Bahamas → Botswana → Cambodia → Ghana → Iceland → Mongolia → Panama → Syria → Trinidad and Tobago → Yemen → Zimbabwe →