Under international standards, financial institutions are required to freeze the accounts of customers identified by government as terrorists or the supporters of terrorism. Financial institutions are also required to monitor client transactions to determine if they suggest terrorism financing. However, financial institutions have been given little guidance as to when a pattern of transactions might suggest terrorism financing. By outsourcing the identification of such patters to financial institutions, governments have abdicated their responsibility and reduced the availability of financial services for clients who fit a popular but inaccurate profile of a terrorist.
Financial Institutions, Terrorists, Patterns of Culpability
Place of Original Publication
Wake Forest Law Review
43 Wake Forest Law Review 699 (2008)
Gordon, Richard K., "Tryst or Terrorists? Financial Institutions and the Search for Bad Guys" (2008). Faculty Publications. 147.