The text discusses the global significance of crowdfunding as an innovative fundraising solution, acknowledging its growth while highlighting concerns about its exploitation by terrorist actors. The Financial Action Task Force (FATF) conducted its first comprehensive study on terrorist financing (TF) linked to crowdfunding, revealing that groups like ISIL, Al-Qaeda, and ethnically motivated individuals exploit crowdfunding for their activities. The report identifies four main ways crowdfunding platforms can be abused, involving humanitarian causes, dedicated crowdfunding platforms, social media, and virtual assets. Challenges in detecting and deterring TF, as well as the lack of consistent AML/CFT regulation globally, are discussed. The report recommends jurisdictions and stakeholders to understand and mitigate TF risks in crowdfunding, emphasizing the importance of public-private information sharing and a multi-stakeholder approach. Risk indicators are provided to identify suspicious crowdfunding activities.

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