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What is a Designated Person or Entity: Terrorism and Terrorist Financing (TF)? CFATF Secretariat Research Desk June 30th, 2021.
What is a Designated Person or Entity: Terrorism and
Terrorist Financing (TF)?
CFATF Secretariat Research DeskJune 30th, 2021.
UNSCR 1267 (1999) and itssuccessor resolutions.
UNSCR 1373 (2001), including thedetermination that the relevantsanctions will be applied to the person orentity and the public communication ofthat determination.
In general, ‘designation' refers to the identification of a natural or legal person, individual or entity
that is subject to targeted financial sanctions in accordance with the following United Nations Security
Council resolutions (UNSCRs).
For terrorism and TF, designation occur under the following:
Source: FATF (2012-2020), General Glossary, International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
What are targeted financial sanctions (TFS) related to terrorism and terrorist financing (TF)?
This refers both to asset freezing and prohibitions to prevent funds or other
assets from being made available, directly or indirectly, for the benefit of designated
persons and entities.
TFS related to terrorism and TF falls under FATF Recommendation 6. The focus is on
the preventative measures that are required and unique in the context of stopping the flow of funds or other assets to terrorist
groups and the use of funds or other assets by these groups.
Source: FATF (2012-2020), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
Designated Person or Entity related to Terrorism and TFS refers to an individual, group, undertaking or entity
designated by :
United Nations Security Council 1373 (2001) -Domestic Designation.
United Nations Security Council resolution 1267 (1999), 1988 (2011) -
Taliban.
United Nations Security Council resolution 1267
(1999), 1989 (2011) - Al-Qaida.
These are acts or activities indicating that an individual, group, undertaking or
entity is associated with ISIL (Da'esh) and Al-Qaida:
Listing Criteria for Designations.
UNSCR 1267 (1999), 1989 (2011)
• Participating in the financing, planning,facilitating, preparing, or perpetrating of acts oractivities by, in conjunction with, under the nameof, on behalf of, or in support of;
• Supplying, selling or transferring arms andrelated materiel to;
• Recruiting for; or otherwise supporting acts oractivities of, ISIL (Da'esh), Al-Qaida or any cell,affiliate, splinter group or derivative thereof.
• Any undertaking owned or controlled, directly orindirectly, by any person or entity designated.
Source: FATF (2012-2020), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
These are acts or activities indicating that an individual, group, undertaking or
entity is associated with the Taliban:
Listing Criteria for Designations.
UNSCR 1267 (1999), 1988 (2011)
• Participating in the financing, planning,facilitating, preparing, or perpetrating of acts oractivities by, in conjunction with, under the nameof, on behalf of, or in support of;
• Supplying, selling or transferring arms andrelated materiel to;
• Recruiting for; or otherwise supporting acts oractivities of those designated and otherindividuals, groups, undertakings and entitiesassociated with the Taliban in constituting athreat to the peace, stability and security ofAfghanistan.
• Any undertaking owned or controlled, directly orindirectly, by any designated person or entity.
Source: FATF (2012-2020), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
Listing Criteria for Designations.
UNSCR 1373
• Any person or entity who commits or attemptsto commit terrorist acts, or who participates inor facilitates the commission of terrorist acts;
• Any entity owned or controlled, directly orindirectly, by any designated person or entity or;
• Any person or entity acting on behalf of, or atthe direction of any designated person or entity.
Domestic Designation Mechanism
Source: FATF (2012-2020), International Standards on Combating Money Laundering and the Financing of Terrorism & Proliferation.
Identification and Designation
Targeting process for designation should
focus on those persons and entities that
represent key elements of terrorist
support networks in order to obtain
maximum impact in preventing and
suppressing acts of terrorism.
Source: FATF (2013). International Best Practices, Targeted Financial Sanctions related to Terrorism and Terrorist Financing.
• Designations are made at the national orsupranational level, by a country or countries actingon their own motion, or at the request of anothercountry.
• “Reasonable grounds” or “reasonable basis” will beapplied by the country's legal standards of its ownlegal system regarding the kind and quantum ofevidence.
Identification and Designation
• Designations relating to Al-Qaida are made by the1267 Committee.
• Designations pertaining to the Taliban and relatedthreats to Afghanistan are made by the 1988Committee.
UNSCR 1373
UNSCRs 1267 and 1988
Source: FATF (2013). International Best Practices, Targeted Financial Sanctions related to Terrorism and Terrorist Financing.
