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COMBATING THE FINANCING TERRORISM: AN ANALYSIS OF THE EU REGULATORY FRAMEWORK AND ENFORCEMENT MECHANISM
Abstract
European Union (EU) has been at the forefront of efforts to disrupt and dismantle the financial networks that sustain terrorist organizations. This paper provides a comprehensive analysis of the regulatory frameworks and enforcement mechanisms employed by the EU in its fight against the financing of terrorism. The study analyses the threat by examining the different funding methods used over the years by various terrorist organizations. Then, the research scrutinizes the role of EU frameworks and mechanisms to mitigate those threats. It explores the challenges posed by divergent national implementations and the measures taken to enhance cooperation and information-sharing among member states. The research evaluates ongoing efforts to address these challenges, including the new Regulation on the Traceability of Transfers of Funds (TFR). In conclusion, the paper provides a comprehensive overview of the EU’s CFT architecture framework. It analyses the strengths and weaknesses of the existing regulatory framework and enforcement mechanisms, including identifying potential gaps and areas for improvement within the EU’s CTF framework, offering recommendations for strengthening regulatory oversight, enhancing cross-border collaboration, and addressing emerging threats posed by evolving financial technologies.
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References18
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