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GFIA comments on characteristics and indicators of terrorist risks

Release Date: 01/22/2016
Staff Reference: Ethan Kohn

Shana Krishnan
Policy Analyst
Anti-Money Laundering / Counter-Financing of Terrorism
Financial Action Task Force

January 2016

Subject:: GFIA comments on characteristics and indicators of terrorist risks

Dear Ms. Krishnan,

You have asked that we reach out to insurers to see if they have developed terrorist financing characteristics and risk indicators that they can share with the Financial Action Task Force (FATF).

Insurers in our member associations have indicated that they do indeed consider various risk factors to identify customers or third parties who may be involved in transactions that are part of a scheme to finance terrorist activities. Generally speaking, the operational details underpinning terrorist organizations, or even “lone wolf” actors, are the purview of national and international intelligence services and are not widely understood by insurers or the public at large. Accordingly, insurers rely heavily on guidance from the FATF and from their national authorities in screening for potential terrorist financing plots, and they do not tend to develop such mechanisms on their own. Furthermore, insurers need objective elements to rely on in order to monitor these risks effectively...