Terrorist attacks are geopolitical events that are believed to have an adverse effect on national and
international economy. These attacks have direct and indirect financial consequences. Terrorism is a
political issues nowadays, the stock exchange can be directly or indirectly affected by terrorism activity
(IMF 2005). The terrorist attacks that have occurred in the past few years around the world have raised
international awareness of the danger of terrorism and its complex repercussions on the financial markets.
Financial institutions could be involved in financial crime as victim, as perpetrator, or as instrumentality:
Financial institutions can be subject to different types of fraud or abuse; they can directly commit
financial crimes; or they can be used by third parties to commit crime (IMF, 2001a). Similarly, terrorism
can have multiple implications for financial markets. First, as demonstrated by the attacks of September
11, 2001 on the World Trade Center financial markets can be, directly and indirectly, the victim of
terrorism. Second, financial institutions can be specially set up to support terrorism. Third, financial
institutions can be used, without their knowledge, to channel terrorist funds.