Counter terrorism activities seem to be part of nearly every news cycle. Governments expect financial institutions to play an increasingly significant role in choking off terrorist funding networks.</p> Yet the nature of the threat is evolving, experts say. Small cell and lone wolf attacks are becoming more common, meaning the sums of money involved are smaller and potentially harder to track.</p> A panel discussion at Sibos 2016 explored how the industry can adjust to these developments – including tracking funding from legal sources – while minimising negative impact on legitimate transactions.</p> </p> A subsequent paper – Trends in Counter Terrorist Financing</a> – captures highlights from the discussion. Among the key takeaways:</p> Terrorists are being financed by legitimate sources such as student loans, as well as by criminal activities</li> The financial industry needs to adapt to the different approaches being used by terrorists</li> Information sharing between private and public sectors is key</li> More information is not necessarily helpful – the goal is to focus on higher quality information</li> </ul>The panellists highlighted the need for the financial industry to adapt to the changing threats. At the same time, they said, due consideration needs to be given to the impact of yet more regulation on legitimate financial flows. Concerns about data privacy and financial inclusion also need to be addressed.</p> Above all, panellists concluded, closer communication is needed in order to share information effectively. Without this type of dialogue, the money will continue to flow while information sharing remains impeded.</p> The conversation will continue in Toronto at Sibos 2017 in October.</p>