Counter-Financing of Terrorism (CFT) is also known as Combating the Financing of Terrorism. Both are abbreviated as CFT and mean the same thing.
This is an AML activity that encompasses surveillance, assessment, investigation, sanctions and other traditional AML activity. A bank can receive instructions or guidance from any number of government entities. International Monetary Fund (IMF) has developed standards for assessment through its Offshore Financial Centers assessment program. Surveillance guidance is provided by Financial Sector Assessment Program (FSAP), which is another the IMF. And the Financial Action Task Force (FATF) plays a crucial role in developing the standards for assessment.
About the Author: Marcus Maltempo is a compliance professional with more than a decade of experience helping banks, law firms and clients manage investigations and regulatory responses.