UN Security Council adopts resolution to counter terror funding

The UN Security Council has adopted a resolution that calls upon countries to prevent and counter the financing of terrorism, especially in its new forms.

Initiated by France, Resolution 2462 is intended to update existing resolutions and adapt them to new forms of financing of terrorism and new challenges in this field, Xinhua news agency reported on Thursday.

The resolution notes with concern that terrorists may abuse legitimate businesses and non-profit organisations for their activities, and make use of emerging payment methods, such as prepaid cards and mobile payments or virtual assets.

It also expresses concern at the continuing use by terrorists and their supporters of information and communications technologies, in particular the internet, to facilitate terrorist acts, as well as inciting, recruiting, funding, or planning terrorist acts.

Therefore, the resolution calls upon all countries to enhance the traceability and transparency of financial transactions, including assessing and addressing potential risks associated with virtual assets and as appropriate, the risks of new financial instruments, including but not limited to crowd-funding platforms.

It also encourages member states to apply risk-based anti-money laundering and counter-terrorist financing regulations to virtual asset service providers, and to identify effective systems to conduct risk-based monitoring or supervision of virtual asset service providers.

Furthermore, the resolution 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.

Adopted in 2001 in response to the September 11 terrorist attacks in the US, Resolution 1373 was the first comprehensive resolution imposing obligations on all states to respond to the global threat of terrorism.

Resolution 2462 also affirms the Resolution 1373 and in particular its decisions that all countries shall prevent and suppress the financing of terrorist acts and refrain from providing any of support, active or passive, to entities or persons involved in terrorist acts.