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Bank of England terror cash alert

The Bank of England is alerting IFAs and product providers to be vigilant against the movement of terrorist funds in the wake of the London bombings.

It has asked the Personal Finance Society to alert members to financial sanctions against terrorist groups such as Al-Qa’ida and regimes including Zimbabwe, Sudan and the ousted Taliban government in Afghanistan.

Legislation prohibits firms from making available funds or economic resources to any individual listed by the Uni-ted Nations, European Union or the UK as a target for financial sanctions and requires that any funds held for or on their behalf are frozen. Advisers that knowingly deal with a listed person or group are liable to criminal prosecution.

A spokesman for the bank’s financial sanctions unit says it previously focused its efforts on major banks but is now targeting smaller firms and the wider financial services sector.

The PFS has already committed to publishing a terrorist money laundering warning in its September newsletter.

The BoE says it plans to involve all financial services trade bodies. The bank spokesman says: “People should be putting two and two tog- ether and checking carefully who they are dealing with.”

PFS head of public affairs John Ellis says: “Many IFAs will not know about these sanctions but they need to be aware of them even if they are never directly affected. In the current situation, this is the least we can do. Firms cannot aid people who are threatening lives.”

Wilson Dean Financial Services director Nick Lincoln says: “Reasonably educated IFAs know the main targets and can use their common sense to decide who they should not deal with.”

Financial sanctions regimes

Al-Qa’ida & the Taliban

Burma/Myanmar

Democratic Republic of Congo

Federal Republic of Yugoslavia & Serbia

Ivory Coast

Liberia

Sudan

Zimbabwe

Source – www.bankofengland.co.uk

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