The Counter-Terrorism Committee Executive Directorate (CTED) took part in the 2025 Joint Experts Meeting of the Financial Action Task Force (FATF) hosted by the United Nations Office on Drugs and Crime (UNODC) in Vienna, Austria, from 8 to 10 January 2025.
Over 150 operational experts from more than 60 countries and organizations worked in two parallel tracks, one focusing on asset recovery-related topics and the other – on the terrorism financing (TF)-related topics. Most of the sessions on TF-related topics were dedicated to the ongoing project of the FATF Risks, Trends and Methods Group to produce a Comprehensive Update on Terrorism Financing Risks, which is co-led by CTED and France, and aims to build a deeper knowledge on the methods and techniques used by terrorist organizations and individuals to raise, move, store, and use funds; ensure a continued understanding of the traditional and evolving risks; and foster increased information-sharing among jurisdictions on TF. CTED co-led several sessions, and delivered two presentations, including on evolving trends in the financing of foreign terrorist fighters’ activity.
Over the three days of the Joint Experts Meeting, participants of the TF-related work stream discussed changes in the evolution from traditional criminal activity to more sophisticated criminal schemes to finance terrorism; methods specific to various types of terrorist groups operating in particular contexts, as well as preferred methods of financing for individual terrorists and FTFs; the use of professional financial advisors and facilitators; vulnerabilities exploited by terrorist organizations to conduct large scale lucrative criminal activities (extorsion, exploitation of natural resources and cultural heritage, illicit trade, smuggling, etc.); predominant and evolving trends in cross-border transportation of cash in TF schemes, including with the use of drones; evolving trends related to the use of money remittances and hawala-like services, including the digital hawala; abuse of legal enterprises, non-profit organizations, small businesses; abuses of various digital platforms, including virtual assets; and the anticipated trends in TF in the next few years.
Experts agreed that with the emergence of new technologies, the use of cryptocurrencies and online fundraising platforms will likely become more prevalent. However, terrorist organizations are unlikely to abandon the current methods altogether. Instead, they will devise new approaches and techniques to enhance the use of these methods in a manner that suits their funding needs.
Overall, experts agreed that TF will continue to be increasingly dominated by a combination of various financing methods, creating complex and evolving patterns. By using multiple methods to raise, move, store, and use funds, terrorists can adapt to local contexts to sustain their financing activities rather than relying on a singular approach.
Case studies discussed at the Joint Experts Meeting include financing methods of domestic terrorist groups; financing methods prevalent among terrorist groups and lone actors motivated by xenophobia, racism and other forms of intolerance, or in the name of religion or belief; the evolution of Da’esh structures and financing models in certain regions, including Europe, Central Asia and Central, South and Eastern Africa; the use of cross border crowdfunding; convergence with drugs and arms trafficking; and misuse of legal entities and investment schemes.
CTED also contributed to the session focusing on incorporating TF risks into mutual evaluations and challenges in FATF assessments.