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Purpose

This paper aims to inform the readers about the preferred type of financial intelligence for early detection of terrorist financing activities.

Design/methodology/approach

Literature review methodology was adopted to find the existing approaches of financial intelligence and logical reasoning was applied to sort out what type of financial intelligence is more preferable for early detection of terrorist financing activities.

Findings

It was found that proactive financial intelligence executed through financial intelligence tools is the most preferred type of financial intelligence for early detection of terrorist financing activities.

Research limitations/implications

The research will pave the way for further research on how to design financial intelligence tools for the early detection of terrorist financing activities.

Practical implications

The financial intelligence units will use the preferred type of financial intelligence for the early detection of terrorist financing activities.

Social implications

It will help to establish peace in the society by thwarting terrorist conspiracies because early detection of terrorist financing through financial intelligence tools will stop the flow of funds to and from terrorists.

Originality/value

The originality of the paper lies in distinguishing proactive financial intelligence from reactive financial intelligence.

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