Communication on an Action Plan for strengthening the fight against terrorist financing

The recent attacks in the European Union and beyond underlined the need for the EU to work across all policies to prevent and fight terrorism. Terrorist organisations and individual terrorists need financing – to maintain their networks, to recruit and supply, and to commit terrorist acts themselves. Cutting off sources of finance, making it harder to escape detection when using these funds, and using any information from the financing process to best effect can all therefore make a powerful contribution to the fight against terrorism.

The challenge of terrorist financing is not new. Key characteristics like the close link with organised crime networks have been known for many years and EU criminal laws, police cooperation, as well as legislation to prevent and fight money laundering, already make an important contribution. However, new trends have emerged, seen in particular in criminal organisations such as Daesh, as well as the role of returning foreign terrorist fighters.

Today's security challenges need determined, rapid and cohesive action to modernise the relevant legislation, ensure it is fully implemented, cooperate better and exchange key information. This needs action both at EU level and beyond.

The European Agenda on Security underlined the need for measures to address terrorist financing in a more effective and comprehensive manner. It highlighted the links with organised crime, feeding terrorism through channels like the supply of weapons, proceeds from drug smuggling, and the infiltration of financial markets. The European Agenda on Security was welcomed by the European Parliament. A further intensification of work was also supported in the conclusions of both JHA and ECOFIN Councils as well as of the European Council of 18 December 2015. The Foreign Affairs Council also addressed the issue on 14 December 2015, whilst earlier that month, the Commission presented a proposal for a Directive on combating terrorism, introducing a comprehensive criminal offence of terrorist financing.

This Communication presents an action plan to further step up the fight against the financing of terrorism, building on existing EU rules to adapt to new threats and updating our policy and practices in line with international standards. There are also many ways in which Member States can act already to use the existing framework better. Two main strands of action have been identified:
- How to further detect and prevent terrorist organisations and their backers to move funds and other assets, and to ensure that financial movements can wherever possible help law enforcement to trace terrorists and stop them from committing crimes;
- How to further disrupt the sources of revenue of terrorist organisations, by targeting their capacity to raise funds in the first place.

The fight against the financing of terrorism is crucial for the security of citizens. But further steps to close off the options for terrorist financing may also touch on the lives and the economic activity of citizens and companies throughout the Union. In line with better regulation principles, the Commission will undertake impact assessments to prepare the legislative actions identified in this action plan. The Commission will take into account the balance between the need to increase security and the need to protect fundamental rights, including data protection, and economic freedoms.

ESO: Background information: Commission presents Action Plan to strengthen the fight against terrorist financing http://www.europeansources.info/record/press-release-commission-presents-action-plan-to-strengthen-the-fight-against-terrorist-financing/

---