Although terrorism financing can use similar methods to money laundering,  there are some comparative differences. The cost to finance a terrorist act can be of relatively small sums and in comparison to money laundering where funds originate from proceeds of crime, funds to finance terrorism may originate from legitimate sources.  Due to these differences, detection of terrorism financing presents greater challenges. 
 
When undertaking a risk assessment businesses should become familiar with countries that are known or suspected of sponsoring terrorism and terrorist organisations.  Examples of such countries include Afghanistan, Pakistan, Iran, Sudan, Syria, Yemen, Uzbekistan and Turkmenistan.   Customers domiciled in such countries or transactions being sent to or originating from those jurisdictions should receive additional scrutiny.  

A compliance programme should set out what controls will be put in place to mitigate the risk.  Controls may include transaction filtering systems and enhanced customer due diligence.