Global Financial Information, Compliance Incentives and Conflict Funding

Abstract

Since the attack of 11 September 2001 on the USA, the interdiction of terrorist funds has occupied the attention of international organizations and national governments throughout the world, and has been defined as a central element of the ‘war on terror’, During the succeeding twelve months trans-border cooperation on the provision of financial information was strengthened, led by Washington and London in their double role as strategic security allies and regulators of the two major global financial centres. In this period, some 166 countries issued orders blocking the terrorist assets, but only US $112 million of funds were frozen.² However, closer examination reveals that it proved very difficult to ensure timely reporting of the financial transactions of targeted individuals or groups, or to deny them access to the international financial system.³