Vaccani, Matteo2012-03-192012-04-042012-03-192012-04-042010978-0-8213-8178-6https://hdl.handle.net/10986/2399https://hdl.handle.net/10986/5916Terrorism can endanger innocent human life and tear the very threads that hold society together, namely, trust and security. Governments have mobilized a variety of tools in response, ranging from the political to the economic. In attempting to prevent and detect terrorist financing and other forms of material support, those offering financial services have been required to heighten their vigilance of potential terrorist abuse of those services. While protecting financial services from potential abuse, care should be taken not to deny access to those services to those most in need. Dejection and social exclusion are very often conducive to terrorism; therefore, ensuring inclusion of the disenfranchised and creating possibilities for their advancement are key parts of the broader, long-term struggle against terrorism and extremism. The paper begins with a brief description of alternative remittance system (ARS) models and their prevalence. It then covers their potential relationship with terrorist financing, citing cases where ARS have been abused for terrorism financing (TF) purposes. Ways in which countries may control these risks and indications of their effectiveness are covered next. The final chapter provides recommendations on how best to mitigate the risks while ensuring legitimate access to financial services via ARS.CC BY 3.0 IGOACCESS BARRIERSACCESS TO FINANCIAL SERVICESACCESSIBILITYACCOUNT BALANCEACCOUNT HOLDERACCOUNTINGACROSS BORDERSADBADVERTISEMENTADVERTISEMENTSAFFORDABILITYAFFORDABLE COSTSALTERNATIVE REMITTANCE SYSTEMANNUAL REMITTANCESANTI-MONEY LAUNDERINGARBITRAGEBACKBONEBALANCE OF PAYMENTSBANK ACCOUNTBANK TRANSACTIONSBANK TRANSFERSBANKSBEST PRACTICESBLACK MARKETBONDSBORDER TRANSACTIONSBORDER TRANSFERSBUSINESS ACTIVITIESBUSINESS RELATIONSHIPBUSINESS VOLUMEBUSINESSESCAPITAL FLIGHTCASH DEPOSITSCASH FLOWCASH FLOWSCASH WITHDRAWALSCELL PHONECENTRAL BANKCLAIMANTCOMMODITIESCOMMUNICATION SERVICESCOMPETITIVE MARKETCOMPETITIVE PRICESCOPYRIGHTCORRUPTIONCREDIBILITYCURRENCY EXCHANGECUSTOMDEPOSITDEPOSITSDIASPORADIRECT DEPOSITDISBURSEMENTDISBURSEMENTSDUE DILIGENCEE-MAILECONOMIC ACTIVITYECONOMIC DEVELOPMENTECONOMIC SUPPORTETHNIC GROUPSEXCHANGE CONTROLSEXCHANGE RATEFINANCESFINANCIAL CHANNELSFINANCIAL CRISESFINANCIAL FLOWSFINANCIAL INFRASTRUCTUREFINANCIAL INFRASTRUCTURESFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL MEANSFINANCIAL RESOURCESFINANCIAL SECTOR DEVELOPMENTFINANCIAL SERVICEFINANCIAL SERVICESFINANCIAL SUPPORTFINANCIAL SYSTEMFINANCIAL SYSTEMSFINANCIAL TRANSACTIONFINANCIAL TRANSACTIONSFIXED COSTSFOREIGN ASSETSFOREIGN CURRENCYFOREIGN EXCHANGEFOREIGN EXCHANGE CONTROLSFOREIGN EXCHANGE TRANSACTIONSFOREIGN MARKETSFORMAL FINANCIAL INFRASTRUCTUREFORMAL FINANCIAL INSTITUTIONSFORMAL FINANCIAL SECTORFRAUDFUNDS TRANSFER SYSTEMSGPSIMAGEINCOMEINFORMAL CHANNELSINFORMAL REMITTANCEINFORMAL REMITTANCE SYSTEMSINFORMATION SHARINGINNOVATIONINSPECTIONINSPECTIONSINTERNATIONAL BANKINTERNATIONAL BEST PRACTICESINTERNATIONAL ECONOMICSINTERNATIONAL POLICIESINTERNATIONAL REMITTANCEINTERNATIONAL STANDARDSLARGE TRANSACTIONSLAW ENFORCEMENTLEGAL FRAMEWORKLICENSELICENSESLOCAL BANKLOCAL BUSINESSLOCAL ECONOMYLOCAL GOVERNMENTSLOCAL MARKETLONG-TERM COSTSLYONMARKET FAILURESMARKET PLAYERSMARKETINGMATERIALMIGRANTSMIGRATIONMOBILE PHONEMONEY LAUNDERINGMONEY TRANSFERMONEY TRANSFER OPERATORSMONEY TRANSFER SERVICESMONTHLY REMITTANCEMULTINATIONALNATURAL RESOURCESNET LOSSESNETWORKSNEW TECHNOLOGIESNONPROFIT ORGANIZATIONSOUTREACHPAPER REQUIREMENTSPAYMENT SYSTEMSPEER PRESSUREPOOL OF FUNDPOOL OF FUNDSPROOF OF IDENTITYQUERIESRADIORECIPIENT COUNTRIESREGULATORY ENVIRONMENTREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREGULATORY OVERSIGHTREGULATORY PRACTICEREGULATORY REQUIREMENTSRELIABILITYREMITTANCEREMITTANCE CHANNELSREMITTANCE COMPANIESREMITTANCE CORRIDORREMITTANCE CORRIDORSREMITTANCE FLOWSREMITTANCE INFLOWSREMITTANCE PROVIDERSREMITTANCE RECIPIENTSREMITTANCE SECTORREMITTANCE SENDINGREMITTANCE SENDING COUNTRIESREMITTANCE SERVICEREMITTANCE SERVICE PROVIDERSREMITTANCE SERVICESREMITTANCE SYSTEMSREMITTANCE TRANSFERREMITTANCE TRANSFERSREMITTANCESREMITTERSRESULTRESULTSRISK ASSESSMENTSRISK MANAGEMENTRISK MITIGATIONRISK PROFILESEARCHSELF-REGULATIONSERVICE PROVIDERSERVICE PROVIDERSSETTLEMENTSETTLEMENT SYSTEMSSOCIAL EXCLUSIONSUBSIDIARYSUPERVISIONTARGETSTECHNICAL ASSISTANCETECHNICAL RESOURCETELEPHONETERRORISMTRANSACTIONTRANSACTION COSTSTRANSACTION VOLUMETRANSFER MECHANISMSTRANSFER MONEYTRANSFER OF GOODSTRANSFER SERVICESTRANSFER SYSTEMTRANSMISSIONTRANSPARENCYTREASURYUNIONUSERUSERSUSESWIRE TRANSFERSWITHDRAWALWorld Bank10.1596/978-0-8213-8178-6