Module: General Practice
Q97: Terrorist Financing (TF) is conceptually distinct from Money Laundering (ML). Which of the following statements accurately describe these distinctions and the international framework governing them?
While Money Laundering involves processing "dirty" money derived from criminal activities, Terrorist Financing can involve funds raised from legitimate sources (such as salaries, profits, or charitable donations) that are then used for illegal purposes.
United Nations Security Council Resolution (UNSCR) 1267 establishes a global list of designated terrorists (specifically Taliban, Al-Qaeda, and ISIL) whose assets must be frozen by all member states.
United Nations Security Council Resolution (UNSCR) 1373 mandates that countries create their own domestic mechanisms to designate terrorists and freeze their assets, allowing for "Domestic Designations" beyond the UN list.
In Money Laundering, the primary goal is to disguise the origin of funds, whereas in Terrorist Financing, the primary goal is to disguise the destination or purpose of the funds.
United Nations Security Council Resolution (UNSCR) 1267 establishes a global list of designated terrorists (specifically Taliban, Al-Qaeda, and ISIL) whose assets must be frozen by all member states.
United Nations Security Council Resolution (UNSCR) 1373 mandates that countries create their own domestic mechanisms to designate terrorists and freeze their assets, allowing for "Domestic Designations" beyond the UN list.
In Money Laundering, the primary goal is to disguise the origin of funds, whereas in Terrorist Financing, the primary goal is to disguise the destination or purpose of the funds.
✅ Correct Answer: D
The correct answer is Option D. TF can use clean money.
UNSCR 1267 lists global terrorists.
UNSCR 1373 mandates domestic lists.
ML hides origin; TF hides destination.
These distinctions are critical for the IIBF AML KYC Exam 2026.
UNSCR 1267 lists global terrorists.
UNSCR 1373 mandates domestic lists.
ML hides origin; TF hides destination.
These distinctions are critical for the IIBF AML KYC Exam 2026.