7. What is the difference between money laundering and terrorist financing? ln contrast to money laundering, which involves the disguising of funds derived from illegal activity so they may be used without detection of the illegal activity, terrorist financing can involve the use of legally derived money to carry out illegal activities. The objective of money laundering is financial gain or the hiding or disguising of illicit proceeds, whereas with terrorism, the objective is to promote the agenda or cause of the terrorist organization. For example, it is widely believed that the terrorist activities of September 11,2001, were partially financed by legally obtained funds that had been donated to charities. Both money launderers and terrorists, however, do need to disguise the association between themselves and their funding sources. 8. ls the approach to combat money laundering and terrorist financing the same? Although some of the risk factors and red flags that apply to other types of money laundering also may apply to terrorisl fìnancing, the patterns of activity tend to be very different. Terrorist fìnancing often involves very small amounts of fundð, which may be moved through charities or nontraditional banking systems, whereas other types of money laundering may involve large volumes of funds. lt is important to understand the different patterns to protect against the risks. Overv¡ew of U.S. AML Laws and Regulations 9. What are the key U.S. AML laws and regulations? The key U.S. AML laws and regulations are the Bank Secrecy Act of 1970 (BSA) and the Uniting and Strengthening Americã by Providing Appropriate Tools Required to lntercept and Obstruct Terrorism Act of 2001 (commonly referred to as the USA PATRIOT Act). The BSA was the first major money laundering legislation in the United States. lt was designed to deter the use of secret foreign bank accounts and provide an audit trail for law enforcement by establishing regulatory reporting and recordkeeping r