Combating the Financing of Terrorism: EU Policies, Polity and Politics

This article discusses the activities and initiatives undertaken by the European Union in Combating the Financing of Terrorism (CFT). The introduction of programmes to counter the financing of terrorism are derived from pre-existing anti-money laundering programmes and were the first step taken by the US in its 'war on terror' following 11 September 2001. As such, CFT has been the subject of considerable attention, and has given rise to new EU legislation and regulatory guidance to stop the flow of money to terrorist groups and to use the intelligence gathered from financial surveillance to identify and prosecute terrorists. The proposed counter-terrorism measures not only tighten controls on money transfers but also touch upon the highly sensitive issues of preventing the misuse of non-profit organisations by terrorists and the exchange of personal data.

This article analyses the EU initiatives adopted (policies), the institutional framework for implementing the activities at the EU level (polity) and the wider consequences of this regulatory guidance on civil liberties (politics). While the European contribution to the 'war on terror' is conventionally described as a matter of law enforcement and the execution of civilian and soft power, the article argues that the EU has gone beyond the international policy guidance, as revealed by the case of Kadi and al Barakaat. The article concludes that it is important to engage the public in a dialogue on liberty/security in order to reach a compromise on what is acceptable to manage the unease in the face of terrorist threats.

EIPASCOPE: Archive http://www.eipa.eu/en/eipascope/archive/

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