G7 pledges to clamp down on terrorist financing

The club of wealthy nations has been cooperating to block the financial pipelines that allow terrorists to travel, plan and carry out attacks, but said that more must be done.

“Countering violent extremism and bringing perpetrators to justice remain top priorities for the whole international community,” they said after two days of talks in northern Japan. “The G7 commits to working together to strengthen the global fight against terrorist financing,” said an action plan to be adopted by the group’s leaders who meet in Japan next week.

French Finance Minister Michel Sapin, whose country suffered devastating attacks in January and November of 2015, said the Group of Seven was now in the “operational phase” of its efforts. “We will introduce effective tools at our disposal in the war against terrorism financing,” he said. “It is absolutely essential.” 

Sapin said that good exchanges between intelligence agencies were vital, “especially to fight against large movements of money by, for example, the Islamic State in Syria or Iraq”.

Another key tool is to counter the cover provided by “prepaid but anonymous phone cards, movements of cash that allow anonymous access to finances,” he said. 

The G7 action plan identified “targeted financial sanctions” as critical to hindering terrorist support networks.

It also emphasised the need to freeze terrorist assets, including those of individual militants. Among specific measures, the bloc committed to reducing the threshold for declaring cross-border cash transactions. The G7 consists of Britain, Canada, France, Germany, Italy, Japan and the United States. All are also members  of the broader G20, which takes China, India and    emerging economies such as Turkey.