Using Cognitive Prediction to Confront Terrorist Financing

2018-August-03

As terrorism evolves, the traditional ways of identifying the finance it depends on are become less and less effective. At a time when CTF and AML regulations are becoming ever more demanding, this is an urgent issue. We argue that it’s time to turn the existing approach to counter terrorist financing on its head and develop “cognitive prediction” models that start by looking at how funds are used.

Traditionally, the approach to dealing with terrorist financing starts by breaking it down into two kinds of needs: supporting organizational costs, and the direct costs of attacks themselves, looking at things like travel, infrastructure, logistics and charitable support on the one hand; and everything from vehicles to surveillance gear and IED components on the other. Then, the traditional approach divides terrorist financing into three categories:
1. The raise: amassing capital for planning and carry out attacks. This is typically funded through charities, criminal activities, legitimate business – even through individuals’ own salaries or welfare.
2. The transfer: moving money. Today there are of course many options for doing this, from FX transactions. FinTech and trade-related transfers through to cash couriers and ‘alternative
remittance systems’ such as hawalas.
3. Use: the final application of the funds. Use case are seemingly limitless, and depend on the nature of the terrorist activity being planned.

Discover how shifting your perspective from raising funds to how they’re used using cognitive prediction is a more effective way to combat terrorist financing.

Download

18

September

2018

It Takes Two To Tango: The Interdependence of Data and Technology

By Michael Kerman | September 18, 2018 Everyone’s talking about artificial intelligence and machine learning (AI and ML). But what’s […]

View more
11

September

2018

Combating Modern Slavery and Human Trafficking: What Financial Institutions Should Know

The issue of modern slavery continues to be a sensitive topic within the private sector. A lack of experience of […]

View more
24

July

2018

Tracking Risks Regarding Marijuana Related Businesses: Seed to Sale Monitoring

With conflicting opinions from state and federal legislation and limited guidance from the Department of Justice and FinCEN, financial institutions […]

View more

Best in Class Onboarding

Sarah Kocianski: Best in Class Onboarding | June 12, 2018 (A version of this article was originally published on 11:FS […]

View more
26

June

2018

Insurers turn to artificial intelligence in war on fraud

By Steven Melendez | June 26, 2018 (A version of this article was originally published on FastCompany.com) Using artificial intelligence […]

View more
26

June

2018

Modern Slavery Typologies for Financial Services Providers

by The Mekong Club   | June 26, 2018 This project aims to equip financial service professionals with an understanding of […]

View more
19

June

2018

Surfing Uncertainty To Confront Terrorism Financing

by Thomas M. Obermaier, RDC   | June 19, 2018 Keynote presentation to the FinTech FinCrime Exchange (FFE) in London, UK […]

View more

Ongoing portfolio monitoring for financial institutions

Reducing false positives while increasing productivity and monitoring your portfolio.

View more