Which two statements in the Wolfsberg Group's 'Suppression of the Financing of Terrorism' define the role financial institutions should play in the fight against terrorism? (Choose two.)
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A. B. C. D.AD
https://www.wolfsberg-principles.com/sites/default/files/wb/pdfs/The-Wolfsberg-Group.pdfThe Wolfsberg Group's "Suppression of the Financing of Terrorism" paper provides guidance to financial institutions on their role in the fight against terrorism. The paper sets out several statements that define the role financial institutions should play, two of which are as follows:
A. Financial institutions need to assist competent authorities in fighting terrorist financing through prevention, detection, and information sharing.
This statement highlights the critical role financial institutions play in fighting terrorist financing. Financial institutions are expected to take proactive measures to prevent and detect terrorist financing and cooperate with competent authorities in the exchange of information to identify and disrupt terrorist financing activities. By working closely with law enforcement agencies and sharing information, financial institutions can help identify, track, and disrupt the flow of funds to terrorist organizations.
B. Financial institutions need to continuously analyze the types of activity related to terrorist financing and develop models that in the long term will drive down terrorism.
This statement emphasizes the importance of ongoing analysis and modeling to identify emerging trends and patterns in terrorist financing. Financial institutions are expected to develop and refine their models to identify suspicious activity related to terrorist financing and implement measures to prevent and detect such activity. By continuously analyzing and refining their models, financial institutions can better identify and prevent the flow of funds to terrorist organizations.
C. Financial institutions should have financial intelligence units dedicated to the investigation of activity that would lead to the detection of terrorist financing as a means to decrease global terrorism, and D. Financial institutions should apply extra due diligence whenever they see suspicious or irregular activities, especially when customers are engaged in sectors or activities that have been identified by competent authorities as being used for the financing of terrorism are also important statements made in the Wolfsberg Group's paper, but they do not directly define the role of financial institutions in the fight against terrorism.
In summary, the Wolfsberg Group's paper outlines several statements that define the role of financial institutions in the fight against terrorism, including the need to assist competent authorities, continuously analyze activity related to terrorist financing, and implement measures to prevent and detect such activity. Financial institutions are expected to work closely with law enforcement agencies, share information, develop and refine models, and implement extra due diligence measures to identify and disrupt the flow of funds to terrorist organizations.