Learn in the textbookFinTech, Digital Currencies, and Identity Verification / Anti-Money-Laundering Measures
DefinitionCFT (Combating the Financing of Terrorism) refers to measures that keep money from reaching terrorist (テロ) organizations or acts of terrorism.
ExplanationFor example, financial institutions check whether a payee is a person or group publicly listed as subject to measures such as asset freezes. When they find a suspicious transfer, they stop the transaction or report it to the authorities.
AnalogyIt is like a ticket gate attendant at the exit who stops anyone holding a ticket to a dangerous destination.
Memory hookThe initials of Combating (fighting), Financing (providing funds), and Terrorism.