Australia has a "relatively low" incidence of terrorism financing, with only a limited amount of funds suspected of being raised here to date. However, banks are  being warned that terrorism financing usually involves smaller amounts of money than are involved in money laundering, making it difficult to detect.The anti-money laundering and counter-terrorism financing regulator Austrac has issued a report on terrorism financing in Australia to raise awareness among reporting entities, particularly banks and remittance companies. Austrac said a key feature of terrorism financing in Australia was that it was largely motivated by international tensions and conflicts. "Currently, the conflicts in Syria and Iraq pose the most significant terrorism financing risks to Australia. Yemen and Somalia pose ongoing risks," the report said.Two groups listed as terrorist organisations by the Australian government are engaged in conflict against the Syrian regime.There are several features of terrorism financing, apart from the small amounts involved, that make it hard to detect. Those sending funds out of Australia for terrorism financing tend to use conduit countries rather than send the funds directly to high-risk jurisdictions. This makes it difficult for financial institutions to link the international transfers directly to terrorism financing. Neighbouring countries, including Lebanon, Turkey, Jordan and the United Arab Emirates, have been used as conduits to route money to terrorist groups in Syria.Co-mingling legitimate funds with funds collected for terrorist groups is common. This might be done by way of donations collected through charities and not-for-profits. Charities and NFPs in crisis and war zones risk being infiltrated by terrorist groups who divert funds to their cause.The large volume of private financial assistance sent from Australia to family and community members in Syria provides opportunities for co-mingling or disguising funds for terrorism financing among legitimate transactions.Austrac said there was a wide of financing channels, including the cross-border movement of cash, stored value cards, online payment methods and charities."Banks and remittance companies are used to send funds to individuals engaged in foreign conflicts, some of whom are also suspected of engaging with terrorist groups," it said.Indicators of suspect activity include "structured" cash deposits and withdrawals, which involves the division of large amounts into a number of smaller deposits or transfers.In other cases multiple customers make international funds transfers to the same beneficiary located in a high-risk jurisdiction. Alternately, funds are transferred to multiple beneficiaries located in the same high-risk jurisdiction.In some cases a customer uses incorrect spelling or variations of a name to avoid detection.