Measures set to hit terrorist funds

The Chancellor of the Exchequer has set out new measures to further strengthen the financial system's ability to deny terrorists funds, identify and investigate terrorist networks and disrupt terrorist activity through swift, pre-emptive strikes.

In a speech on national security to the Royal United Services Institute (RUSI) in London, Gordon Brown said: "We need not only to deny a safe haven to terrorists, but ensure there is no hiding place for those who finance terrorism. Since 2001 we have frozen assets of terrorists of nearly £80 million - including for over 100 organisations with links to Al Qaeda. Today I am announcing new measures to prevent terrorist financing, identify suspicious transactions, and disrupt terrorist activity."

The Chancellor has also written to the Financial Action Task Force (FATF) - the international standard-setter on counter-terrorist finance issues - requesting that the UK assumes the Presidency of FATF in 2007.

The measures announced by the Chancellor today include a joint review with the Home Office of how best to root-out terrorist abuse of the charitable sector and protect donor confidence and new proposals to strengthen safeguards introduced after September 11th for "Money Service Businesses" - and thereby protect the integrity of global remittance flows.

Firms will be issued with new guidance to help target efforts to detect terrorist financing on the areas of highest risk and ensure that senior managers in firms take responsibility for the financial crime risks that they face.

A new dedicated forum will be set up to bring together Government and the financial services sector to identify and challenge terrorist threats; and a strengthening of the Treasury's asset-freezing operation, through greater joint-working with other departments and agencies in order to disrupt terrorist networks when they come to light will be examined. The new arrangements will focus on delivering a proactive targeting and enforcement programme and will be reviewed in 2007, as part of an assessment of the case for a new, free-standing asset freezing agency.

Earlier this month, the UK took coordinated action with other UN Security Council members to freeze the assets of UK-based supports of the Al Qaeda affiliated Libyan Islamic Fighting Group. It is believed that the group used a complex structure of companies and a charity to provide funds and documents to insurgents in Afghanistan and elsewhere.

The measures announced build on the wide-ranging programme established under the UK's Presidency of the EU and the G7 in 2005.

(SP)