What is CFT?

CFT, which means Combating the Financing of Terrorism in English, and Combating the Financing of Terrorism in Polish.

Countering the financing of terrorism (CFT) involves investigating, analysing, deterring and preventing the sources of funding for activities to achieve political, religious or ideological goals. CFT is achieved through violence and the threat of violence against civilians. By tracking the sources of funds that support terrorist activities, law enforcement may be able to prevent some of these activities.

Countering the Financing of Terrorism (CFT) involves teaching law enforcement financial investigation techniques, teaching prosecutors how to win money laundering cases, and training financial supervisors and regulators to detect suspicious activity. Efforts to combat terrorist financing may include investigating charities, underground banking entities, and registered financial services companies, among others. CFT is also known as Counterfinancing of Terrorism.

Individuals and organizations that finance terrorism must conceal how the money will be used and where it comes from. Funding can come from legitimate sources, such as legitimate religious or cultural organizations, or illegal sources, such as drug trafficking and government corruption. Funds can also come from illicit sources, however, everything can appear to be legal thanks to money laundering.

Money laundering and terrorist financing are often intertwined. While law enforcement is able to detect and prevent money laundering, they often also prevent those funds from being used to finance acts of terrorism. Fighting money laundering is key to fighting human trafficking. A small proportion of the money used to finance terrorism comes from dual-purpose charities, while most of it comes from underground banking units called hawalas, as well as commercial money laundering.