Interpretative Notes To The Nine Special Recommendations On Terrorist Financing

Objective

Special Recommendation II (SR II) was developed with the objective of ensuring that countries have the legal capacity to prosecute and apply criminal sanctions to persons that finance terrorism. Given the close connection between international terrorism and inter alia money laundering, another objective of SR II is to emphasise this link by obligating countries to include terrorist financing offences as predicate offences for money laundering. The basis for criminalising terrorist financing should be the United Nations International Convention for the Suppression of the Financing of Terrorism, 1999 [1].

Definitions

For the purposes of SR II and this Interpretative Note, the following definitions apply:

a) The term funds refers to assets of every kind, whether tangible or intangible, movable or

immovable, however acquired, and legal documents or instruments in any form, including

electronic or digital, evidencing title to, or interest in, such assets, including, but not limited to, bank credits, travellers cheques, bank cheques, money orders, shares, securities, bonds, drafts, letters of credit.

b) The term terrorist refers to any natural person who: (i) commits, or attempts to commit,

terrorist acts by any means, directly or indirectly, unlawfully and wilfully; (ii) participates as an accomplice in terrorist acts; (iii) organises or directs others to commit terrorist acts; or (iv) contributes to the commission of terrorist acts by a group of persons acting with a common purpose where the contribution is made intentionally and with the aim of furthering the terrorist act or with the knowledge of the intention of the group to commit a terrorist act.

c) The term terrorist act includes:

(i) An act which constitutes an offence within the scope of, and as defined in one of

the following treaties: Convention for the Suppression of Unlawful Seizure of Aircraft

(1970), Convention for the Suppression of Unlawful Acts against the Safety of Civil

Aviation (1971), Convention on the Prevention and Punishment of Crimes against Internationally Protected Persons, including Diplomatic Agents (1973), International

Convention against the Taking of Hostages (1979), Convention on the Physical Protection of Nuclear Material (1980), Protocol for the Suppression of Unlawful Acts of Violence at Airports Serving International Civil Aviation, supplementary to the Convention for the Suppression of Unlawful Acts against the Safety of Civil Aviation (1988), Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (1988), Protocol for the Suppression of Unlawful Acts against the Safety of Fixed Platforms located on the Continental Shelf (1988), and the International Convention for the Suppression of Terrorist Bombings (1997); and (ii) Any other act intended to cause death or serious bodily injury to a civilian, or to any other person not taking an active part in the hostilities in a situation of armed conflict, when the purpose of such act, by its nature or context, is to intimidate a population, or to compel a Government or an international organisation to do or to abstain from doing any act.

d) The term terrorist financing includes the financing of terrorist acts, and of terrorists and

terrorist organisations.

e) The term terrorist organisation refers to any group of terrorists that: (i) commits, or

attempts to commit, terrorist acts by any means, directly or indirectly, unlawfully and wilfully; (ii) participates as an accomplice in terrorist acts; (iii) organises or directs others to commit terrorist acts; or (iv) contributes to the commission of terrorist acts by a group of persons acting with a common purpose where the contribution is made intentionally and with the aim of furthering the terrorist act or with the knowledge of the intention of the group to commit a terrorist act.

Characteristics of the Terrorist Financing Offence

Terrorist financing offences should extend to any person who wilfully provides or collects

funds by any means, directly or indirectly, with the unlawful intention that they should be used or in the knowledge that they are to be used, in full or in part: (a) to carry out a terrorist act(s); (b) by a terrorist organisation; or (c) by an individual terrorist.

Criminalising terrorist financing solely on the basis of aiding and abetting, attempt, or conspiracy does not comply with this Recommendation.

Terrorist financing offences should extend to any funds whether from a legitimate or

illegitimate source.

Terrorist financing offences should not require that the funds: (a) were actually used to carry out or attempt a terrorist act(s); or (b) be linked to a specific terrorist act(s).

It should also be an offence to attempt to commit the offence of terrorist financing.

It should also be an offence to engage in any of the following types of conduct:

a) Participating as an accomplice in an offence as set forth in paragraphs 3 or 7 of this

Interpretative Note;

b) Organising or directing others to commit an offence as set forth in paragraphs 3 or 7 of this Interpretative Note;

c) Contributing to the commission of one or more offence(s) as set forth in paragraphs 3 or 7 of this Interpretative Note by a group of persons acting with a common purpose. Such contribution shall be intentional and shall either: (i) be made with the aim of furthering the

criminal activity or criminal purpose of the group, where such activity or purpose involves the commission of a terrorist financing offence; or (ii) be made in the knowledge of the intention of the group to commit a terrorist financing offence.

Terrorist financing offences should be predicate offences for money laundering.

Terrorist financing offences should apply, regardless of whether the person alleged to have

committed the