 Exploring the Role of Fintech in Terrorism Financing: Legal Frameworks and SolutionsMajedeh Bozorgi ()
A chapter in Sustainability and Financial Services in the Digital Age, 2024, pp 9-20 from Springer Abstract: Abstract The financial trade industry is changing due to artificial intelligence (AI), however, there are also ethical issues with this technology. Meanwhile, money laundering continues to be a worldwide problem that has differing effects on nations. Even though money laundering benefits certain countries, accepting money that has been laundered eventually draws criminal activity, with offenders identifying nations, creating networks, and carrying out illegal operations. Fighting terrorism financing is crucial to destroying the roots of terrorism since it plays a crucial role in the spread of terrorism. Thanks to features like anonymity and decentralized security layers, new financial technologies like virtual currencies are becoming more and more popular among terrorists. We explore in this article how these financial system innovations draw in criminal networks and transform the funding of terrorism. Verification and identification of the customer are essential for identifying questionable transactions. Using both descriptive and analytical techniques, our research shows that tracking money laundering and terrorist financing as well as spotting suspicious activity all start with client identification. however intelligent monitoring and unified banking systems are not enough for successful tracking. Virtual currency is perfect for funding terrorism since it allows for anonymous transactions across borders. Therefore, it is essential to follow the research-based recommendations made by the Financial Action Task Force (FATF). Anti-Money Laundering (AML) solutions are used by the majority of financial institutions to stop fraudulent investment activity. However, the main component of a strong AML system is an efficient surveillance system that finds suspicious activity concealed in legitimate transactions. In the context of contemporary financial infrastructures, this essay also looks at international legal restrictions, the difficulties in combating terrorism financing, and the financing of terrorist organizations. It examines the unique elements of international legal legislation concerning the theoretical and practical aspects of countering the financing of terrorism. It is underlined that in order to stop the funding of terrorism, the international community must work together to make use of the strategies and resources already in place. There are many legal regulatory control mechanisms in place, but an efficient global counterterrorism system has not yet been developed. In conclusion, there are potential problems in the battle against financial crimes including money laundering and terrorism financing due to the convergence of artificial intelligence, virtual currencies, and changing financial systems. A complex strategy including international collaboration, technical innovation, legal frameworks, and ongoing study and adaptation is needed to address these issues. Keywords: Financial technology; Legal challenges; Financial crimes; Money laundering (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:prbchp:978-3-031-67511-9_2 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-67511-9_2 Access Statistics for this chapter More chapters in Springer Proceedings in Business and Economics from Springer |
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