Building Resilience Against Terrorist Financing

Terrorist financing is a persistent and evolving threat that challenges the integrity of financial systems worldwide. Across today’s interconnected global economy, financial systems face persistent challenges as they work to guard against exploitation by terrorist networks. terrorist organizations continually adapt their methods, seeking new vulnerabilities in the financial system to fund and facilitate their activities. The threat is not static, but dynamic, demanding equally adaptive and innovative responses. 

Terrorist financing (TF) presents a pressing challenge for governments, financial institutions, and regulatory bodies around the globe. To counter this threat, Financial Institutions, Designated Non-financial Businesses and Professions (DNFBPs), and Virtual Asset Service Providers (VASPs) are required by AML/CFT laws & regulations to put in place strong internal controls—comprehensive policies, procedures, and systems suited to their specific business size, nature, and complexity. These controls are essential for the timely identification, assessment, reporting, and management of risks related to terrorist financing activities. AML/CFT laws & regulations require regular independent audit/testing of effectiveness of these internal controls. 

As terrorist organizations continue to refine their tactics, regulatory oversight has become an indispensable pillar in the global fight against terrorist financing. Regulatory authorities play a crucial role in setting rigorous standards, conducting regular audits, and enforcing compliance throughout the financial sector. Their vigilance compels institutions to maintain robust anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks, while ensuring that emerging threats are met with timely and effective responses. 

Beyond deploying sophisticated transaction monitoring systems and establishing strong internal controls, organizations must also focus on cultivating a well-informed and proactive workforce. Specialized training and practical simulations equip teams with the skills to recognize warning signs and respond swiftly to suspicious activities, strengthening their ability to timely detect and report suspicious activities.

Baker Tilly (UAE) combines deep sector knowledge with practical, actionable insights to support organizations in strengthening their financial crime prevention strategies. By leveraging our expertise in risk assessment and regulatory compliance, we help clients implement robust controls, enhance monitoring capabilities, and foster a culture of vigilance. Our approach goes beyond compliance—we work closely with organizations to design tailored internal controls, enhance transaction monitoring systems, and implement risk-based procedures that are agile, scalable, and aligned with global best practices. We also support the development of training programs that empower teams to detect red flags and respond effectively to suspicious activity.

The newly published UAEFIU Strategic Analysis Report provides essential guidance for advancing these efforts. It helps organizations strengthen their internal controls, recognize sector-specific risks, and apply targeted risk indicators to improve overall effectiveness.

Access the full UAEFIU Strategic Analysis Report on Terrorist Financing here

uaefiu-strategic-analysis-report-on-tf-26-june-public-version-final.pdf