The preferred type of financial intelligence for early detection of terrorist financing activities
| DOI | https://doi.org/10.1108/JMLC-07-2021-0070 |
| Published date | 20 August 2021 |
| Date | 20 August 2021 |
| Pages | 681-690 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Hussain Syed Gowhor |
The preferred type of financial
intelligence for early detection of
terrorist financing activities
Hussain Syed Gowhor
HDR Student, Department of Security Studies and Criminology, Macquarie
University, North Ryde, Sydney, Australia
Abstract
Purpose –This paper aims to informthe readers about the preferred type of financial intelligencefor early
detectionof terrorist financing activities.
Design/methodology/approach –Literature review methodology was adopted to find the existing
approaches of financial intelligence and logical reasoning was applied to sort out what type of financial
intelligenceis more preferable for early detection of terroristfinancing activities.
Findings –It was found that proactive financialintelligence executed through financial intelligencetools is
the most preferredtype of financial intelligence for early detectionof terrorist financing activities.
Research limitations/implications –The research will pave the way for further research on how to
design financialintelligence tools for the early detection of terrorist financingactivities.
Practical implications –The financial intelligence units will use the preferred type of financial
intelligencefor the early detection of terrorist financingactivities.
Social implications –It will help to establish peace in the society by thwarting terrorist conspiracies
because early detectionof terrorist financing through financial intelligencetools will stop the flow of funds to
and from terrorists.
Originality/value –The originalityof the paper lies in distinguishing proactive financialintelligence from
reactivefinancial intelligence.
Keywords Financial intelligence, Early detection, Terrorist financing activities
Paper type Literature review
1. Introduction
The concept of financial intelligence originatedin “the 1989 Paris Summit of the Group of 7
(G-7) countries”(Rudner, 2006, p. 47).The initial aim of financial intelligence was to control
the spread of money launderingcrime (Rudner, 2006). However, after the 11 September 2001
terrorist attack in the United States of America (USA), the roleof financial intelligence was
redefined to deal with the issue of terrorism financing (Rudner, 2006). As a simple concept,
the definition of financial intelligenceis unanimously accepted amongst scholars in the field
of terrorism financing (Schott, 2006). Financial intelligence is defined as the “processed
financial information where such processing follows a definitive analytical rigour”(Sathye
and Patel, 2007, p. 393). The processconsists of several steps, such as collection, evaluation,
collation, integration and analysis (Sathyeand Patel, 2007). A similar definition of financial
intelligence has also been provided by other scholars, such as Unal and Altun (2020) and
Rudner (2006).
The author is thankful to Dr Alex Simpson of the Department of Security Studies and Criminology at
Macquarie University for his valuable opinion on the draft of the paper.
Preferred type
of financial
intelligence
681
Journalof Money Laundering
Control
Vol.25 No. 3, 2022
pp. 681-690
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-07-2021-0070
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