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European Union

EU-US Campaign Tackles Terrorism Funding through Charities

Strategic Insights

— 1 min read

A meeting in Brussels on September 22 saw the European Union and the United States launch a joint effort to crack down on charities being used to fund terrorism. With international co-operation making it increasingly difficult for terrorists to use the banking system, they are turning to other means, including charities, money remittance companies, and cash couriers. The campaign aims to develop a common method for tracking down charities funding terrorism, a move lauded as essential in preventing further terrorist transactions and limiting economic activities.

Key Takeaways:

  • The EU-US campaign aims to develop a common method for tracking down charities funding terrorism, with only a couple of charities out of the many existing ones being linked to terrorist funding.
  • International co-operation has made it harder for terrorists to use the banking system, leading them to rely on other means, including charities, money remittance companies, and cash couriers.
  • The banking sector has seen Euro 142 million frozen from bank accounts as a result of United Nations sanctions lists adopted in the wake of the September 11, 2001 terrorist attacks.
  • The campaign plans to submit an assessment of national charity supervision systems to the OECD's Financial Action Task Force on Money Laundering for the development of a code of best practice.
  • The EU and US aim to share their expertise with third countries that lack the capacity to track bank accounts, helping them set up financial intelligence units.
  • Terrorists are resorting to alternative methods, including money remittance companies and cash couriers, to transfer funds.

Statistics:

  • Euro 142 million frozen from bank accounts as a result of United Nations sanctions lists adopted in the wake of the September 11, 2001 terrorist attacks.
  • The assessment of national charity supervision systems will be submitted to the OECD's Financial Action Task Force on Money Laundering.
  • The OECD's Financial Action Task Force on Money Laundering is represented by the US and most EU Member States.

Sources:

  • "Meeting of the EU-US Troika in Brussels," European Commission, 2004.
  • "US Assistant Economic and Business Affairs Secretary Anthony Wayne's speech in Brussels," The Telegraph, 2004.
  • "OECD Financial Action Task Force on Money Laundering," OECD.

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