News

USIS Washington File

13 January 2000

Text: New Anti-Terrorism Convention Opened for Signing at the UN

(The new Convention targets the financing of terrorism)  (1280)

A new anti-terrorism convention focused on targeting those who finance
terrorism was opened for signing at the United Nations January 10. By
the end of that day, the convention was signed by seven countries:
Finland; France; Malta; Netherlands; Sri Lanka; United Kingdom and the
United States.

The UN said that this is the "latest in a series of interlocking
conventions intended to combat terrorism.

"The International Convention for the Suppression of the Financing of
Terrorism was adopted by the United Nations General Assembly on 9
December 1999 without a vote. It will enter into force when it has
been ratified by 22 States," the UN said January 12. "States who sign
a treaty demonstrate their intention to ratify."

For the first time, this Convention specifically targets the financial
sponsors of terrorist activity, rather than simply the actual
perpetrators of the specific acts. Previously, the financial backers
of such criminal acts could only be charged with aiding or abetting
that crime.

The UN says that the new Convention is intended to have "teeth". If a
significant number of countries become States parties, the Convention
will provide powerful enforcement possibilities to governments who
want to put an end to acts of terrorism. Every time terrorist monies
pass through the territory of a State party, an international crime
has been committed which can be prosecuted.

While this Convention does not specifically define an act of
terrorism, it does come significantly closer. According to the text,
it is a crime to provide or collect funds with the knowledge or
intention that they are to be used in acts of violence targeting
civilians with the intention of intimidating a government.

Following is the United Nations text:

(begin text)

12 January 2000

NEW UNITED NATIONS TREATY TARGETS FINANCING OF TERRORISM

An anti-terrorism convention with a new focus -- targeting those who
finance terrorism -- was opened for signature on 10 January at the
United Nations in New York. By the end of the day, the Convention had
been signed by seven countries: Finland; France; Malta; Netherlands;
Sri Lanka; United Kingdom and the United States.

The latest in a series of interlocking conventions intended to combat
terrorism, the International Convention for the Suppression of the
Financing of Terrorism was adopted by the United Nations General
Assembly on 9 December 1999 without a vote. It will enter into force
when it has been ratified by 22 States. States who sign a treaty
demonstrate their intention to ratify.

Speaking at a press conference following its adoption, Philippe
Kirsch, of Canada, who chaired the working group that drafted the
legislation, called the Convention a model instrument. He pointed out
that it recognizes the fundamental importance of the international
problem posed by the financing of terrorism; it establishes the act of
financing terrorism as an independent crime; it does not require that
an act of terrorism actually be committed; and it contains important
provisions on the liability of legal entities, such as organizations
or groups -- a new concept in the struggle against international
terrorism.

The new Convention is intended to have "teeth". In today's electronic
environment, huge quantities of money can circle the globe in seconds.
If a significant number of countries become States parties, the
Convention will provide powerful enforcement possibilities to
governments who want to put an end to acts of terrorism. Every time
terrorist monies pass through the territory of a State party, an
international crime has been committed which can be prosecuted.

The international community historically has been unable to agree on a
definition of terrorism, as one man's terrorist is often another man's
freedom fighter. Because of this difficulty, countries have taken the
approach of creating the network of conventions which criminalize
specific acts, such as setting bombs, kidnapping or hijacking
airplanes.

While this Convention does not specifically define an act of
terrorism, it does come significantly closer. According to the text,
it is a crime to provide or collect funds with the knowledge or
intention that they are to be used in acts of violence targeting
civilians with the intention of intimidating a government. This is a
much broader category of crime than has previously been outlawed. A
person is also guilty of an offence if he participates as an
accomplice in such an act, if he organizes or directs other to commit
such an act, or if he contributes in any other way to the crime. In
addition, the Convention makes it a crime to provide or collect funds
with the knowledge or intention that they are to be used to carry out
any of the acts described in nine previously adopted anti-terrorism
conventions referred to by the Convention.

States parties are required to adopt measures, such as domestic
legislation, to ensure that the criminal acts described in the
Convention will under no circumstances be considered justifiable
because of political, philosophical, ideological, racial, ethnic or
religious considerations.

For the first time, the Convention specifically targets the financial
sponsors of terrorist activity, rather than simply the actual
perpetrators of the specific acts. Previously, the financial backers
of such criminal acts could only be charged with aiding or abetting
that crime. Under this law, it is not even necessary that an act of
terrorism has taken place; according to article 2, the intention or
knowledge of the use of the funds collected or provided is sufficient.

Proceeds from illicit activities, such as opium production or the
small arms trade now often find their way to the hands of terrorists
through a transnational "shadow banking" system. Front businesses,
such as travel agencies that can change currencies, are easily used to
launder dirty money and to transfer funds. In the globalizing world,
cooperation between transnational criminals and international
terrorists is on the rise.

The Convention sets new limits on the banking secrecy traditionally
provided by some countries, which has been such a useful tool for
transnational criminals and terrorists. States parties will be
required to take "all practicable measures", such as adapting their
domestic legislation, to prevent the relevant offences, whether by
persons or organizations. Banks and other financial institutions must
identify account holders, and must pay special attention to unusual or
suspicious transactions and report any they suspect may stem from
criminal activity.

The Convention suggests a number of specific measures, such as
requiring banks and financial institutions to verify the legal
existence of a customer by obtaining proof of incorporation, or
requiring banks to maintain transaction records for at least five
years. The Convention also calls for efforts to identify, detect, and
freeze or seize any funds used or allocated for the purpose of
committing a terrorist act, and asks that States consider establishing
mechanisms to use such funds to compensate victims and/or their
families.

States parties will be required to provide information to other States
regarding the whereabouts and activities of suspects, or regarding the
movement of funds. They must provide assistance when requested to
obtain evidence in their possession. They should consider measures,
such as introducing licensing for money- transmission agencies and
monitoring the cross-border movement of cash and bearer negotiable
instruments.

All the offences in the Convention are to be deemed "extraditable
offences". But States may no longer refuse extradition on the grounds
that the crime concerned is political in nature. Similarly,
extradition may no longer be denied because the offence is of a fiscal
nature, as the Convention specifies that none of the crimes it covers
are to be considered fiscal offences.

(end text)

(Distributed by the Office of International Information Programs, U.S.
Department of State.)