O'Neill urges global action on terror cash Reuters Washington

U.S. Treasury Secretary Paul O'Neill on Monday urged the Financial Action Task Force, an international group aimed at stopping money laundering, to also set its sights on funding for terrorists.

"Without the force of law or treaty, this organization has convinced other nations to adopt laws and implement enforcement regimes to bar the access of criminals to the international banking system," O'Neill said in remarks at the opening of the FATF's extraordinary plenary meeting in Washington.

"Today, I ask you to devote your considerable experience to disrupt the misuse of the international financial system by terrorists and those who channel funds to them," he said.

The special meeting of the 29-nation group is being held in the aftermath of the devastating Sept. 11 attacks on the United States and the subsequent, ongoing investigation into the money trail left by the attackers.

The FATF was founded by the major industrialized countries in 1989 and has worked to find ways to combat international money laundering.

It is best known for its annual list of nations deemed "non- cooperative" in fighting money laundering, which can trigger international sanctions against offenders.

The group is considering ways to incorporate specific steps aimed at tracking and blocking terrorist funds into its existing list of money laundering countermeasures.

O'Neill urged the delegates to adopt the special recommendations and ensure that even non-FATF nations come into compliance with the group's standards.