Financial Action Task Force (FATF)

The FATF's mandate was expanded after 2001 to include Combating the Financing of Terrorism (CTF). What is the key difference between ML and...

MCQ

MCQ Answer

A. ML is always done in cash; TF is always digital.
B. Money Laundering deals with the source of funds (making 'dirty' money 'clean'); Terrorist Financing deals with the use of funds (legitimate or illegal sources used for terrorist acts). Correct

Explanation

TF networks often use small, legal source funds, posing a different detection challenge than large ML flows.

C. ML is a domestic crime; TF is always international.
D. TF is regulated by the UN; ML is regulated by the WTO.

Correct Answer

Money Laundering deals with the source of funds (making 'dirty' money 'clean'); Terrorist Financing deals with the use of funds (legitimate or illegal sources used for terrorist acts).