In 2020, the Counter Extremism Project (CEP) Berlin carried out a sample analysis to test the extent to which YouTube, Facebook and Instagram block “manifestly illegal” terrorist content upon notification. Our findings raise doubts that the currently applied compliance systems of these companies achieve the objectives of making their services safe for users. As a result, CEP proposed requirements for effective and transparent compliance regimes with a focus on automated decision-making tools and lessons learned from the regulation of the financial industry. This Policy Paper combines all the relevant lessons learned and gives concrete recommendations on how to make the DSA also an effective regulation against terrorist content online.