AMLCTF301 – TERRORISM FINANCING RISK FACTORS

Pubs and Clubs can be used as a channel or method for moving funds—the inherent risk ratings are low to very low in terms of vulnerability to misuse and the outlook is currently stable.

IMPACT: USE OF FUNDS

• Low risk factors: Terrorism financing is more often used to support organisational costs such as propaganda, meetings and recruitment, salary payments to members, or payments to widows, orphans and families of dead fighters and terrorist actors.
• Moderate risk factors: Terrorism financing is evenly used for both organisational costs and operational expenses.
• High risk factors: Terrorism financing is more often linked to a terrorist act or weapons, vehicle, explosives, equipment, training or other activity to prepare to undertake a terrorist act; foreign fighters travel to conflict zones or are sent directly (or indirectly) to recognised foreign terrorist groups.

POLITICAL AND SOCIAL HARM

• Low risk factors: Instances of terrorism financing are unlikely to erode trust and confidence in the Australian government, and are unlikely to cause high levels of social discord.
• Moderate risk factors: Instances of terrorism financing are likely to erode a moderate level of trust and confidence in the Australian government and cause a moderate level of social discord.
• High risk factors: Instances of terrorism financing are likely to erode a significant level of trust and confidence in the Australian government and cause a significant level of social discord.

ECONOMIC HARM

• Low risk factors: Instances of terrorism financing do not erode Australia’s financial performance or reputation, and do not affect the broader Australian economic system.
• Medium risk factors: Instances of terrorism financing moderately erode Australia’s financial performance or reputation, and somewhat affect the broader Australian financial system.
• High risk factors: Instances of terrorism financing significantly erode Australia’s financial performance or reputation, and significantly affect the broader Australian financial system.