Anti-Money Laundering Body to Tackle Terrorism Financing at Plenary Session

October 9, 2002 - 0:0
PARIS -- Officials from a global anti-money laundering body open a two-day meeting here today to take stock of a campaign to stamp out terrorism financing and to assess broader anti-corruption efforts among governments.

The 13-year-old Financial Action Task Force (FATF), formed to combat tax evasion and drug-related money laundering schemes, took aim at terrorism financing shortly after the September 11 attacks in the United States last year.

Shortly after the attacks the group drew up eight recommendations to governments committed to wiping out the financial framework sustaining terrorist networks.

"Today we must ensure better implementation by countries and clarify and interpret the new practices wherever necessary," said Patrick Moulette, FATF general secretary.

The 29-member task force is an independent body but operates from the Paris-based Organization for Economic Cooperation and Development.

Moulette pointed in particular to recommendation number seven, covering the electronic transfer of funds, as needing clarification.

The measure calls for financial institutions to procure information on a client's identity and to preserve it throughout the duration of the transaction.

Since the U.S. attacks, more than 160 countries and administrations have taken concrete staps to freeze the assets of persons or entities suspected of having links with terrorist networks.

Funds in the amount of an estimated $112 million have now been frozen since September 11, 2001, according to finance ministers from the Group of Seven industrialized countries.

The task force in 1990 drafted 40 recommendations to counter global money laundering operations, which were revised in 1996 and which now will be reviewed once again -- notably in light of new techniques practiced by money launderers as well as certain technological advances.

The FATF has in addition drawn up a list of countries and territories deemed to have been non-cooperative in the fight against financial corruption. There have been no indications ahead of the plenary session this week that the list will be revised, AFP reported.

The list at present groups the Cook Islands, Dominica, Grenada, Egypt, Guatemala, Indonesia, the Marshall Islands, Miramar, Nauru, Nigeria, Niue, the Philippines, Russia, St.

Vincent and the Grenadines, and Ukraine.