European Commission tightens financial checks to counter terrorism

The European Commission is to propose that banks register the name, address and account number of everybody making a money transfer in the European Union in an attempt to cut off funding for terrorist networks, the "financial Times" reports in Tuesday's edition. The requirement would apply to even the smallest amounts of money and would include all transfers made from abroad into the EU and from the EU to accounts outside Europe. Diplomats said the regulation would force all EU member states to change their regimes and tighten the information requirements they imposed on banks. The proposed new laws form are part of the EU's response to the global terrorist threat and comes after the Islamist suicide bomb attacks in London. The attacks sparked renewed criticism of the EU's performance in fighting terrorism. Banks and other money transfer companies will be forced to reject any transfers they cannot identify or end links with other financial institutions that fail to provide the information required.