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The Times: Laws alone cannot prevent ‘lone wolf’ terror attacks

With terrorist attacks becoming ever more localised and requiring limited technology, a rethink of banks’ counter terrorism finance strategies may be required to help prevent “lone wolf” or small group terrorist attacks. Speaking to The Times, Exiger’s EMEA Deputy Head of Financial Crime Compliance, Dayna Bordin, explains that financial institutions must “challenge some basic compliance assumptions and consider a practical risk-based approach to prevention”, which includes initiating screening typologies to detect patterns in customer transactions.

Bordin examines the current banking due diligence system built largely on the back of anti-money laundering legislation, from the mechanisms that trigger Suspicious Activity Reports, to changes required in customer vetting procedures under the newly implemented Fourth Anti-Money Laundering Directive, and addresses some shortfalls in the face of the new scope of terrorist attacks.

Financial institutions, Bordin suggests, may benefit from “broadening their approach to network analysis of a series of transactions involving numerous customers” which would enable them to “identify specific patterns of transactional behaviour consistent with terrorist financing”. This type of monitoring will help to link the distributed flow of funds through multiple individuals, accounts and nations, bolstering banks’ efforts to regain the initiative in counter terrorism financing.

For the full article from The Times click here.

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