New York, 20 December 2023 – In its resolution , the Security Council encourages competent national authorities, in particular financial intelligence units and intelligence services, to continue to establish effective partnerships with the private sector, including financial institutions, the financial technology industry and internet and social media companies, in particular with regards to the evolution of trends, sources and methods of the financing of terrorism. Cooperation with the private sector is also emphasized by the Counter-Terrorism Committee throughout its 2022 Delhi Declaration on countering the use of new and emerging technologies for terrorist purposes.
In the context of its of gaps and areas requiring more action to implement key provisions related to countering the financing of terrorism (CFT) of relevant Council resolutions, CTED noted that most of the States evaluated during the reporting period lacked robust public-private partnerships (PPPs) to share information and understand evolving trends, including to better understand the nexus between terrorism and organized crime, increase knowledge and skills of relevant experts, and strengthen the integrity of the financial sector.
CTED’s new analytical brief notes that the landscape of PPPs for sharing financial information is characterized by a wide diversity, encompassing various mechanisms of information exchange between the public and private sectors, whether occurring within an explicitly labelled PPP or through other modalities. As States increasingly turn to the private sector to enhance their anti-money laundering and countering the financing of terrorism (AML/CFT) frameworks and respond to the evolving tactics of terrorist financers, there is a crucial need for cooperation within a legal framework that defines the conditions under which competent authorities can access terrorism-financing-related data and expertise available in the private sector. Establishing robust and clear legal frameworks that comply with relevant human rights standards, in particular rights to data protection and privacy, to promote effective PPPs, is key to effectively exchanging information between the competent national authorities and private sector entities. More inclusive partnerships with a wider range of stakeholders have proven helpful to make PPPs work in the current landscape of the financial industry.
The brief provides examples of PPPs developed in different States in the context of countering the financing of terrorism, and discusses ways in which such partnerships could be further enhanced. It offers an overview of various related challenges and takes stock of possible solutions, based on information collected through CTED’s engagement with Member States, in particular assessment visits conducted by CTED on behalf of the Counter-Terrorism Committee; its outreach to United Nations partners, international and regional organizations, including the Financial Action Task Force (FATF) and its Global Network, civil society, research network and private sector entities; as well as the experience share by experts from States that have instituted PPPs.
The Analytical Brief underscores the need for States to allocate sufficient resources to both public and private sector stakeholders and to continue to strengthen collaboration frameworks for the competent national authorities and the private sector to effectively combat terrorism financing, while ensuring full respect for international law, including international human rights law, international humanitarian law and international refugee law.
CTED will continue to monitor trends and developments on Member States’ efforts to effectively cooperate with the private sector, acting in cooperation with all relevant partners and stakeholders (including FATF and its Global Network) with a view to identifying good practices and making recommendations for strengthening Member States’ capacity in this area.
Download the Analytical Brief here.