G-7 and Terrorism Financing: Looking Toward Gleneagles

By Victor Comras

The G-7 Finance Ministers Statement at the close of their meeting in Washington April 15-16 provides a small glimpse into G-7 thinking re the terrorism financing agenda item for this summer�s G8 Summit at Gleneagles. It appears doubtful that any major new initiatives are planned. Rather, the Group of Eight is likely to stay focused on its previous CTAG and SAFTI initiatives as it pushes to �{strengthen} the process of multilateral asset freezing, in line with UN resolutions,� and to �{improve} information sharing.� The US seems to have come up a little short in getting G-7 full support for its new terrorism financing tracking initiatives. The US wants other countries to adopt measures, similar to those in the Patriots Act, which would effectively filter, or cut off, transactions with questionable overseas financial entities. Ministers agreed only that they would �{explore} the possibility of broadening the application of new financial tools to disrupt all illicit activity.�

The United Kingdom, which will host this years Gleneagles {Scotland} Summit, agreed, last year, to draft a new thematic action plan to better identify and target terrorist support networks. They will likely stress measures directed at encouraging improved implimentation of the UN financial sanctions ( UNSCR 1267 and 1373). They are expected to also propose new steps to bolster application of FAFT�s 40 recommendations, including the 9 Special Recommendations dealing with terrorism financing. The G-8 has not received high marks for following through on its previous initiatives to combat terrorism financing. In fact, the University of Toronto yearly assessment report on G-8 program compliance finds that, since Sea Island, implementation on "terrorism financing has fallen within the negative range." There is growing recognition that further steps are necessary to "re-invigorate" international implementation of UN sanctions requirements. Hopefully Gleneagles will provide an opportunity to review and assess the progress made, and to make the necessary adjustments.

The G-8 created the Counter-terrorism Action Group at Evian in 2003 to place increased pressure on countries to comply with their international obligations to cut off terrorism funding and freeze terrorism-related assets. CTAG was given a mandate to identify countries that either lacked the resources or the political will carry out these responsibilities. CTAG has joined up with the UN�s Counter-Terrorism Committee�s new Executive Directorate (CTED) to identify and focus on candidates for technical and financial assistance. But, this process is still in its early stages. Dealing with the �political issue� has proved even more problematic. (See my earlier Blog on What's Happened To CTAG?

The SAFTI initiative was put in place at the 2004 Sea Island Summit. It is directed at �raising standards, modernizing procedures, and exchanging information in order to deter threats, reduce costs, and help ensure safe and efficient movement of passengers and cargo.�� But, it has already embroiled Europe and the United States in a serious dispute regarding the introduction of new �biometric� traveler identification documents. EU countries are behind schedule in introducing new passports with biometric data and there are important differences with the United States with regarded to the use of embedded chip technology. This could lead to new visa requirements for travelers between the United States and Europe later this year. (See my earlier Blog on Europe: Biometric Passports May be Years Away

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