PREVENTING THE FINANCING OF TERRORISM AND OF CERTAIN FOREIGN REGIMES: EUROPEAN COMMISSION AND EUROPEAN BANKS ESTABLISH "ELECTRONIC-CONSOLIDATED TARGETED FINANCIAL SANCTIONS LIST (e-CTFSL)"

News Release

Chris Patten

No. 98/04
June 14, 2004

PREVENTING THE FINANCING OF TERRORISM AND OF CERTAIN FOREIGN REGIMES: EUROPEAN COMMISSION AND EUROPEAN BANKS ESTABLISH “ELECTRONIC-CONSOLIDATED TARGETED FINANCIAL SANCTIONS LIST (e-CTFSL)"

The European Commission, in partnership with the four European Credit Sector Federations (European Banking Federation; European Savings Banks Group; European Association of Cooperative Banks; European Association of Public Banks), have 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 (CFSP) 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 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 UN Security Council Resolutions 1333 (2000), 1373 (2001) and 1390 (2002) 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 rationalize 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.

The e-CTFSL reflects the data published in the Official Journal of the European Union and indicates various details of the persons, groups and entities subject to EU financial sanctions:

name
aliases, if appropriate
passport number
nationality
function
known addresses.

Access to the database is available to banks through FTP (file transfer protocol), from which they may directly download the information into their own IT systems.

Where to find the list?

The "electronic-Consolidated Targeted Financial Sanctions List" (e-CTFSL), extracted from this database, is publicly available on the Commission's new Internet site at

http://europa.eu.int/comm/external_relations/cfsp/sanctions/index.htm.

This site is devoted specifically to restrictive measures or sanctions imposed in the framework of the European Union's Common Foreign and Security Policy (CFSP).

Over recent years, the significance of sanctions as a policy instrument in the context of the Common Foreign and Security Policy has steadily increased. The EU imposes sanctions in an effort to meet the objectives of the CFSP, which include strengthening of EU and international security and developing and consolidating democracy and the rule of law and respect for human rights and fundamental freedoms. This overlaps to some extent with UN action to preserve international peace and security. For this reason, EU sanctions are either imposed as autonomous measures or in implementation of UN Security Council Resolutions.

The sanctions imposed by the EU target third countries and foreign terrorist groups. They are therefore an essential contribution to the EU's fight against terrorism and in particular against terrorism financing. What is the legal basis for the imposition of sanctions by the EU? What procedures apply for their implementation? What types of sanctions exist? Which principles guide the EU guided in its sanctions policy? What role does the Commission play?

Press Contacts:

Anthony Gooch
202-862-9523

Maeve O'Beirne
202-862-9549