Country Reports on Terrorism 2012

system against money laundering and terrorist financing when adopted and effectively
implemented. FATF recommendations are the internationally-recognized standard for countering
money laundering and terrorist financing. Over 180 jurisdictions have committed to implement
the FATF recommendations. In 2012, FATF continued to identify high-risk jurisdictions with
strategic deficiencies and worked closely with them to address their shortcomings.
In 2012, the United States supported the plenary activities on a range of policy issues,
negotiating, and revising the assessment criteria for mutual evaluations under the new standards;
and participated in the working groups on implementation and on strengthening the FATF
network through the FATF-style regional bodies (FSRBs). The United States continued its cochair
roles with Italy on the International Cooperation Review Group and with Spain on the
Working Group on Terrorist Financing and Money Laundering. The United States continued to
emphasize the importance of targeted financial sanctions and Special Recommendation III, a
provision regarding the freezing and confiscation of assets. Additional work contributed by the
United States included examining and revising the FATF-FSRB relationship, looking at guidance
on new payment methods and their vulnerabilities, outreach to the private sector, public-private
partnerships, maintaining an emphasis on non-financial businesses and professions, and
participation in the Contact Group on the Central African Action Group against Money
Laundering and engagement with that organization to transition to an FSRB.
The United States played a similar and equally active role in the FSRBs, advising and supporting
the work of the FSRB members as well as the Secretariats, by supporting FSRB-executed
training and workshops. The United States provided technical assistance to both members and
Secretariats and took part in technical assistance working group meetings. Additionally, the
United States took part in Contact Groups to guide outreach for new members, and Expert
Review Groups to delve into mutual evaluation issues.
European Union (EU). Established in 2010, the new European External Action Service (EEAS)
led the EU’s engagement with the United States on a range of counterterrorism issues, including
terrorist finance, capacity building in third countries, and transatlantic counterterrorism
cooperation. EEAS officials, along with counterterrorism officials from the European
Commission and the EU Counterterrorism Coordinator’s office, participated with their U.S.
counterparts in biannual discussions in June and November. Specific developments included:
In January, the United States and the EU sponsored an experts meeting on countering
violent extremism work in Pakistan and with Pakistani diaspora communities.
In March, the United States and EU held a joint experts conference on explosives.
Participants discussed improving information exchange, mitigating the homemade
explosive threat posed by chemical precursors, K-9 explosive detection capabilities,
threats to transportation and air cargo, and research and development.
In April, the European Parliament approved a new Passenger Name Record agreement
with the United States, which entered into force on July 1, 2012.
In September, the EU committed to assisting in establishing the International Center for
Justice and the Rule of Law – Tunisia.
In October, as a co-chair of the Global Counterterrorism Forum Working Group on the
Horn of Africa, the EU sponsored a workshop for Financial Intelligence Units from 11
African countries that focused on countering terrorist financing. U.S. officials from the
Departments of State and Treasury participated.
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