Move Funds Without Leaving an Audit Trail | CAMS Exam Prep

Methods Used by Terrorist Financiers to Evade Detection

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Which method do terrorist financiers use to move funds without leaving an audit trail?

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https://www.fatf-gafi.org/media/fatf/documents/reports/FATF%20Terrorist%20Financing%20Typologies%20Report.pdf

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Terrorist financiers use various methods to move funds without leaving an audit trail, and one such method is through the use of cash couriers.

Cash couriers are individuals who physically transport cash or negotiable instruments on behalf of others, often across borders. They use various techniques to avoid detection, such as concealing the cash in clothing, luggage, or other items, or splitting it into smaller amounts to avoid currency reporting requirements.

Cash couriers can move funds quickly and efficiently, making it a preferred method for terrorist financiers who want to avoid the scrutiny of financial institutions or law enforcement agencies. It is difficult to trace the source of funds or determine the intended recipient when cash is physically transported.

Other methods that terrorist financiers may use to move funds without leaving an audit trail include extortion, where they coerce individuals or businesses into paying them, and the use of virtual currency or cryptocurrency, which can be difficult to trace due to its decentralized nature.

Additionally, terrorist financiers may use informal value transfer systems (IVTS), such as hawalas or casa de cambio, which are alternative remittance systems that operate outside of traditional banking channels. These systems may be used to move funds without leaving an audit trail, making them attractive to those seeking to launder money or finance terrorism.

In conclusion, while all of the answer options presented in the question can be used by terrorist financiers to move funds without leaving an audit trail, cash couriers are a preferred method due to their speed and efficiency, and their ability to avoid the scrutiny of financial institutions and law enforcement agencies.