FATF urges to overhaul anti-terror finance rules to cut off funding channel for IS

Anti-terror finance rules need to be overhauled to cope with the use of social networking sites and social media fundraising that support foreigners fighting for Islamic State (IS), the Financial Action Task Force (FATF) said on Monday.

Delegates from the more than 180 members of the FATF, an intergovernmental body established in 1989 to stop monetary flows to terrorist organizations, will also consider the potential danger of online, or crypto-currencies such as Bitcoin and the operation of the global financial system at it's week-long meeting in Brisbane.

FATF President Australian Roger Wilkins, Secretary of the Australian Attorney Generals department, told Newsorp on Monday FATF wanted to expand on a report it received in February on the funding of Islamic State.

"Social networking and that sort of use of funds is something we identified in the IS report, even crowdfunding, using some of the newer forms of finance as some of the ways of anonymous supporting," Wilkins said.

Crowdfunding involves raising money for a project from a large number of people, either through informal networks or by using websites such as Kickstarter.

The FATF meeting, which started on Sunday, will also examine the abuse of charities by terror groups and old-fashioned cash smuggling.

"The capacity of border protection people to pull up cash and ask some difficult questions, interrogate people who are caught in the act, is a little bit weak in terms of how countries enforce it, " Wilkins said.

The FATF meeting is being held in Brisbane from June 21 - 26. Endi