CTF (counter-terrorism financing) and AML (anti-money laundering) are both related to efforts to prevent the illicit use of financial systems and to protect against financial crimes. However, they are distinct areas of focus, and while there is some overlap between the two, they are not the same.
CTF refers specifically to efforts to prevent the financing of terrorism, which can include measures such as tracking and monitoring financial transactions, implementing financial sanctions, and disrupting financial networks that support terrorist activities. CTF is focused on preventing the flow of funds to terrorist organizations and making it more difficult for them to carry out their activities.
AML, on the other hand, refers to efforts to prevent the illicit use of financial systems for activities such as money laundering, which is the process of disguising the proceeds of illegal activities as legitimate funds. AML measures are designed to prevent criminals from using the financial system to conceal the proceeds of their illicit activities and to make it more difficult for them to access and use those funds. AML measures can include measures such as tracking and reporting suspicious transactions, implementing customer due diligence requirements, and establishing financial sanctions.
Overall, CTF and AML are both important tools for preventing the illicit use of financial systems and for protecting against financial crimes. While there is some overlap between the two, they are distinct areas of focus and involve different types of measures and activities.
This page was last updated on July 17, 2023.