The Financial Action Task Force is expanding its mission beyond money laundering and will now also focus its energy and expertise on the worldwide effort to combat terrorist financing.

“Today the FATF has issued new international standards to combat terrorist financing, which we call on all countries in the world to adopt and implement,” said FATF president Clarie Lo. “Implementation of these special recommendations will deny terrorists and their supporters access to the international financial system.”

The FATF agreed to a set of special recommendations on terrorist financing which commits members to a number of duties. Some of these include freezing and confiscating terrorist assets, reporting suspicious transactions linked to terrorism and providing the widest possible range of assistance to other countries’ law enforcement and regulatory authorities. It also agreed to impose anti-money laundering requirements on alternative remittance systems and to strengthen customer identification measures in international and domestic wire transfers. Lastly it must ensure that entities, in particular non-profit organizations, cannot be misused to finance terrorism.

In order to secure the swift and effective implementation of these new standards, the FATF agreed to a comprehensive plan of action. By December 31, all FATF members must assess their situation against the special recommendations. By February 2002, it will develop additional guidance for financial institutions on the techniques and mechanisms used in the financing of terrorism. In June 2002, it will initiate a process to identify jurisdictions that lack appropriate measures to combat terrorist financing and discussion of next steps, including the possibility of counter-measures.

The FATF will intensify its co-operation with the FATF-style regional bodies and international organizations and bodies, such as the UN, the Egmont Group of Financial Intelligence Units, the G-20, and international financial institutions, that support and contribute to the international effort against money laundering and terrorist financing.