Terrorist Financing is the direct or indirect support of terrorism or of persons who encourage plan or engage in terrorism, through the provision of financial or other material assistance. Persons engaged in terrorist financing transfer funds that may be of legitimate or criminal origin in such a manner as to conceal their ultimate use, namely the support of terrorism.
Terrorism: Involves the carrying out of acts intending to cause death or serious bodily injury to civilians or to destroy property, with the purpose of intimidating a population, or to compel a government or an international organisation to do or abstain from doing some act.
Terrorist financing may involve funds raised from legitimate sources, such as personal donations and profits from businesses and charitable organizations. It may also involve funds from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion.
Persons involved in terrorist financing use techniques like those of money launderers to evade the attention of the authorities and to protect the identity of their sponsors and of the ultimate beneficiaries of the funds.
The various activities involved in terrorist financing have been criminalised in Bermuda by virtue of sections 5 – 8 of the Anti-Terrorism (Financial and other Measures) Act 2004. Sections 32, 33 and 230 of the Criminal Code also criminalise any attempt, conspiracy or incitement to commit any such offence.