Published on Jan 08, 2026
In today’s interconnected financial landscape, the ability to detect, prevent and respond to financial crime is more crucial than ever. Money laundering and terrorist financing are not only criminal offences, they’re also systemic threats that undermine economies, distort markets and erode trust in legitimate institutions. Even with increasingly stringent global regulations, gaps in enforcement and compliance continue to give criminals opportunities to exploit financial systems.
Money laundering is the process by which criminals disguise the illicit origins of their funds, allowing them to enjoy the proceeds of crimes such as corruption, fraud, drug trafficking, or tax evasion. Through layers of complex transactions, these funds are ‘cleaned’ until they appear legitimate.
Terrorist financing, whilst related, differs in purpose. It involves collecting or providing funds - whether from legal or illegal sources - to support terrorist activities. The key distinction is motivation: while money laundering seeks to conceal unlawful profits, terrorist financing focuses on using money, from any source, to fund extremist or criminal causes.
The Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) frameworks aim to cut off the financial lifelines of criminal and terrorist organisations. By tracking suspicious transactions and enforcing transparency, regulators and institutions can expose and dismantle illicit networks.
But AML/CFT compliance isn’t just about avoiding fines or penalties. It’s about protecting an organisation’s integrity and reputation. Failure to comply can lead to serious legal consequences, financial losses and damage to stakeholder confidence. In a global economy where trust underpins every transaction, maintaining strong compliance practices is essential to preserving credibility.
A successful AML/CFT strategy goes beyond written policies - it requires an embedded culture of vigilance and accountability. Key pillars include:
A Financial Intelligence Unit (FIU) isn’t a single organisation, but rather a type of national agency that exists in almost every country. Each country has its own FIU, which acts as the central authority for receiving, analysing and disseminating information about suspected money laundering (ML) and terrorist financing (TF) activities.
It collects and analyses Suspicious Activity Reports (SARs) or Suspicious Transaction Reports (STRs) from banks, financial institutions, lawyers, accountants and other regulated entities.
The FIU then shares relevant intelligence with law enforcement agencies, prosecutors, and international counterparts to support investigations globally.
Almost all countries that are members of the Financial Action Task Force (FATF) or its regional bodies are required to maintain an FIU.
Here are some examples:
Strong AML/CFT systems help organisations identify risks early, stay compliant with evolving regulations, and prevent financial abuse. More importantly, they uphold the integrity of the financial system, ensuring businesses operate ethically, transparently and responsibly in a world where financial integrity is both a moral and strategic imperative.
To support organisations in strengthening their compliance frameworks, our expert trainer, Manoj Nair, is presenting an in-depth webinar on Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT).
This comprehensive session will help participants to understand AML and CFT principles and global best practices and develop and implement an effective AML framework for their business. He will also cover best practices and identify the risks of non-compliance.
Published on Jan 08, 2026 by Angela Spall