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International: Second Anti-Terrorist Financing Statement

(Aug. 17, 2016) Delegates from 26 countries issued a joint document on the need for greater collaboration to counter the financing of terrorism. The Nusa Dua Statement, named for the location in Bali, Indonesia, in which the second Counter-Terrorism Financing Summit was held from August 8-11, 2016, was released at the end of the meeting. The 240 delegates included representatives of the United Nations, industry, academia, and other civil society groups, as well as government officials. (Ni Komang Erviani, Bali Summit Agrees to Stronger Collaboration to Combat Terrorism Financing, JAKARTA POST (Aug. 11, 2016); The Nusa Dua Statement, AUSTRAC (Aug. 2016).) A previous Counter-Terrorism Financing Summit was held in Sydney in 2015, resulting in the issuance of the Sydney Communiqué. (Erviani, supra; Communiqué: Ministerial Meeting, 12 June 2015, Sydney, Australia, U.S. Department of State website.)

The 2016 summit was jointly sponsored by the Indonesian Financial Transaction Reports and Analysis Centre (PPATK) and the Australian Transaction Reports and Analysis Centre (AUSTRAC). It was held at the same time as a meeting on counter-terrorism efforts was convened in Jakarta by the Indonesian Coordinating Ministry of Politics, Law, and Security Affairs. (Sonya Michaella, Indonesia Committed to Tackle Terrorism Financing, METROTV NEWS (Aug. 4, 2016).)

The participants in the Bali summit agreed that “the Islamic State (IS) in Iraq and the Levant constitutes a global threat to international peace and security” and that stronger collaboration between nations is needed to stop the financing of terror. (Erviani, supra.) The statement also condemned the terrorist attacks that killed and injured civilians in cities including Baghdad, Brussels, Dhaka, Istanbul, Jakarta, Jeddah, Orlando, and Paris; stressed the central role of the United Nations in combatting terrorism and its financing; acknowledged the progress since the 2015 Summit in developing domestic legal and regulatory frameworks; emphasized the key role of financing in supporting terrorism; and affirmed the need for governments to cooperate with industry, civil society, and the community to work on developing measures against terrorism financing. (The Nusa Dua Statement, supra.)

The Nusa Dua Statement calls for participants to commit to strengthening their work against terrorism financing in a number of ways, including by:

  • the International Community of Experts (ICE), in collaboration with the Financial Intelligence Consultative Group (FICG), developing a set of high level requirements and analyzing existing solutions to improve information sharing;
  • the FICG studying cross-border cash movements in the region to develop proposals for better monitoring and disruption of improper transactions at borders;
  • participating bodiesupdating their evaluations of non-profit organizations considered to be “higher-risk,” in order to target some for oversight and outreach, with the FICG organizing a regional assessment of such groups;
  • strengthening regional cooperation, including through the exchange of analysts, initially between countries in the Southeast Asian region and Australia;
  • establishing a Community Outreach Consultative Group that will create a road map and educational tools to prepare for a 2017 Counter Terror Financing Summit, plan a method of funding ongoing educational tools on terrorist financing risks, and consider future educational tools for regional use;
  • building technical capability to increase regional and global capacity against terrorist financing and prevent the misuse of technology as potential means for terrorist financing; and
  • continuing to hold summits on the issue. (Id.)

According to Muhammad Yusuf, the head of Indonesia’s Financial Transaction Reports and Analysis Center,

This summit achieved the same perception, wishes and goodwill that there is a need to prevent, identify and combat terrorism financing. As a country consisting of thousands of islands, Indonesia in particular is really worried about terrorist activities. … By collaborating with Australia and other countries in the region, it will be easy for us to overcome the problem, especially terrorist financing. (Ni Komang Erviani, Bali Summit Agrees on Need for Terrorism Risk Assessment, JAKARTA POST (Aug. 10, 2016).)