11/6/2004
European Commission Presents New Tool In Fight Against Terrorist Financing

The European Commission, in partnership with the four European credit sector federations, has established an electronic database containing all relevant data concerning persons, groups and entities, subject to European Union financial sanctions.

Welcoming this initiative, Chris Patten, member of the Commission responsible for external relations commented: “This list is an important new tool in the fight against terrorism to which the European Commission is totally committed. This co-operation between the credit sector federations and the European Commission is a very good example of an efficient public-private partnership project in the field of security policy.”

The correct application of financial restrictions is crucial in order to meet the objectives of the Common Foreign and Security Policy and especially to help prevent the financing of terrorism. The application of financial restrictions constitutes an obligation for both the private and public sector.

Following the terrorist attacks of 11 September 2001 on the USA, new anti-terrorist financial sanctions regulations were published in the EU Official Journal, including lists of persons, groups and entities that are suspected of involvement in international terrorism. These regulations supplement existing financial sanctions, which target certain foreign regimes (e.g. the governments of Myanmar and Zimbabwe). In October 2003, the European Commission agreed to the European credit sector federations’ proposal to create a consolidated list and database of persons, groups and entities subject to EU financial sanctions. The four federations involved are the European Banking Federation, the
European Savings Banks Group, the European Association of Cooperative Banks and the European Association of Public Banks.

The “electronic-Consolidated Targeted Financial Sanctions List” (e-CTFSL) enables banks and other EU businesses to integrate the content of the database into their IT systems, hereby rendering the freezing of bank accounts and other funds and assets more effective, and permitting faster processing of information published in the Official Journal. The new database thus constitutes an important tool in the fight against international terrorism and its financing in line with various UN Security Council Resolutions and the UN Convention for the Suppression of the Financing of Terrorism (1999).

The e-CTSFL meets the technical and other specifications requested by the credit sector. It was developed first and foremost to rationalise existing information and thereby to assist the members of the EU credit sector federations implement financial sanctions.

Whilst the setting up of the database was financed by the representatives of the European banking industry, the European Commission will be solely responsible for maintaining the e-CTFSL, and will regularly update the list.