CFT Full Form in Banking, What Does CFT Stand For?

CFT Full Form in Banking is Combating the Financing of Terrorism. Giving money to people or organizations who commit acts of terror or force is referred to as supporting terrorism. They employ it to pursue various governmental, religious, or economic goals. So allow me to explain CFT in banking in greater detail. Trying to combat Terrorism financing refers to a set of government initiatives (CFT). They are made to restrict those the government deems to be terrorists from using banking and financial services. By identifying the source of the funding for some terrorist operations, law enforcement may be able to put a stop to them.

Legitimate religious or cultural organizations as well as illegal activities like drug smuggling may provide financial assistance to these terrorists. Through money laundering, such illicit funds take on the appearance of lawful funds. Consequently, there is a common link between financing terrorism and money laundering. The main source of funding for terrorism is eliminated when law enforcement agents locate and halt money laundering operations. As a result, CFT gives fighting money laundering a top priority. Since money meant for breaking the law rather than money earned through crime is used to fund terrorism, the practice is frequently referred to as “reverse money laundering.” You now understand what CFT in banking is.