A bipartisan House Financial Services Committee task force today released a report on combating the financing of terror. In the course of its yearlong investigation, the task force identified several “highly critical vulnerabilities” in the U.S.’ ability to stop the flow of funds to terrorist organizations, including federal information sharing and inter-agency coordination.
“The report… will serve as a guide for the next Congress in crafting legislation to thwart terrorist groups from carrying out their vicious global operations,” said task force Chairman Mike Fitzpatrick (R-Pa.). “Combating terror financing is a significant and often overlooked component of our national security strategy. This report signals to the next Congress and Treasury Department that we must continually evaluate and improve our response toward international terror and criminal financing.”
Included among the task force’s short term recommendations were a number of bipartisan bills aimed at improving information sharing between government entities and law enforcement and developing a “whole-of government” strategy for fighting illicit finance.
In the longer term, the task force stressed the need for increased interagency coordination, more overseas Treasury attaches, better information sharing between organizations and international partners and additional focus on helping developing countries fight illicit finance. The task force also called for greater supervision of nonbank financial institutions through a harmonized regulatory and examination procedure, better collection of beneficial ownership information and for the re-establishment of a Terrorist Financing Working Group.