Terrorist Financing

  • Current list of entities designated as terrorist-related under the Canadian Criminal Code, the United Nations Suppression of Terrorism Regulations and the United Nations Afghanistan Regulations.

Terrorist activities take money, and one way to combat terrorists is to cut off their access to funds. But terrorist financing - and terrorism generally - is a global problem that requires well-co-ordinated, multilateral response through international bodies such as the United Nations and the Financial Action Task Force (FATF).

Canada and the international community have taken significant steps to fight terrorism and end terrorists' opportunities for financing. Learn more about combating terrorist financing.

To help stop people and organizations from providing or collecting funds for terrorist acts, the UN General Assembly adopted the International Convention for the Suppression of the Financing of Terrorism on December 10, 1999. Canada ratified the Convention in February 2002.

Since 1999, the United Nations Security Council has adopted a series of resolutions following up on Resolution 1267 (1999) relating to the Taliban, Al-Qaida or Osama bin Laden. With these resolutions, the UN maintains a list of groups and individuals designated by a United Nations Security Council committee for associating with the Taliban, Al-Qaida or Osama bin Laden. All UN Members are obliged to freeze assets of people and groups on the list, and to prohibit funding to them. Canada implemented Resolution 1267 by adopting the United Nations Afghanistan Regulations (UNAR) in November 1999.

On September 28, 2001, the United Nations Security Council passed Resolution 1373, binding all UN members to take action against those who commit terrorist acts and their supporters, including freezing their assets and funds. Canada was among the first countries to implement Resolution 1373 when it adopted the Canadian UN Suppression of Terrorism Regulations (UNSTR). The UNSTR enable the Governor in Council to keep a list of entities that are suspected of being associated with terrorist activities.

When entities (organizations and individuals) are designated under the Canadian UNSTR and the UNAR, the government freezes their assets and prohibits fundraising on their behalf. The UNAR and the UNSTR automatically include the United Nations 1267 Sanctions Committee list. Canadian UNSTR and UNAR legislation lists more than 500 entities associated with terrorist activities under the responsibility of the Minister for Foreign Affairs. The Canadian Criminal Code (Anti-Terrorism Act, 2001) also addresses terrorism financing and has a listing scheme.

The UNAR and the UNSTR enable Canada to act promptly on our international obligations, with our international partners. When an entity is listed in Canada under the UNSTR, the Office of the Superintendent of Financial Institutions (OSFI) immediately informs Canadian financial institutions to freeze any of its assets.

The Financial Action Task Force (FATF) is an inter-governmental body that develops and promotes national and international policies to combat money laundering and terrorist financing. Some 34 countries and territories and two regional organisations currently are FATF members. Further, over 180 jurisdictions recognize the FATF standards through membership in the global network of FATF-style regional bodies (FSRBs). FATF plays a key role in setting uniform financial standards to combat terrorist financing. Click here to learn more about money-laundering.

The G7 also has current projects to advance the fight against terrorism financing and to increase co-operation among international partners.