Press Release No. 18/150

Statement by IMF Managing Director Christine Lagarde on Her Participation in the Paris Conference on Terrorism Financing

April 26, 2018

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), made the following statement today in Paris following her participation in the ministerial conference “No money for terror. Terrorism financing: the other war against Al-Qaida and Daesh.”

“This conference provides a good model of how countries can work together to engage in collective action in the fight against terrorism financing. I want to congratulate the French authorities for their leadership on this crucial issue.

“Terrorism destroys lives. Terrorist attacks can also have direct economic effects. These heinous acts often have a devastating impact on investor and consumer confidence, and affect key sectors of the economy, such as financial markets and tourism.

“During the discussions, I stressed that there are still challenges to the effectiveness of counter-terrorism financing efforts. These include improving our understanding of terrorism financing risks, making better use of financial intelligence, and enhancing domestic and international cooperation. Fintech was another area explored during the conference. It can be used to promote and fund terrorism through the anonymity of crypto-assets. But leveraged effectively, fintech can also be a powerful tool to fight terrorism and its financing.

“At the IMF, we have been investing significant efforts to help our member countries improve their frameworks on anti-money laundering and countering the financing of terrorism (AML/CFT) through surveillance, capacity development, and assessments against the FATF standards. For example, in 2017, we engaged with some 40 members on AML/CFT issues. Since 2002, AML/CFT technical assistance was provided to over 120 countries through more than 385 projects.

“Looking ahead, by working together, the IMF and the broader international community can reinforce defenses against the financing of terrorism, and build on the progress made so far to confront new challenges. The IMF’s intensified engagement on governance and corruption will help in this regard. The IMF will also continue to play its part in these efforts through global dialogue, surveillance, financing programs, research, and capacity development.”