The European Commission today proposed that Member States decide to freeze all funds held by 27 organisations and individuals suspected of supporting and financing terrorist activities. The proposed Council regulation constitutes a binding legal instrument that applies to the holding and transfer of funds within the European Community.

The draft regulation allows Member States to act quickly to block terrorist accounts and to effectively curb financing of terrorism. The proposal follows the European Council decision of Friday 21 September. The European Council called upon the Council to take the necessary measures to combat any form of financing of terrorist activities.

The proposed regulation intends to ensure a rapid and more coherent application of these measures throughout the EU. In order to prevent circumvention of different national measures it is considered necessary to apply restrictions on payments and movements of capitals within the European Community.

The draf regulation contains in an annex a preliminary list of organisations and individuals potentially involved in the 11 September attacks in the U.S. This list might later be extended to others as the EU develops its campaign against terrorism.

This measure builds upon the Council Common Positions(1) and Community sanctions legislation(2) already in force, related directly to the freezing of funds and other restrictive measures with regard to the Taliban in Afghanistan under United Nations Security Council Resolutions. These measures continue to apply.

The Commission expresses its hope that the European Parliament will give its opinion with the utmost urgency, enabling the Council of Ministers to adopt this legislation as soon as next week.

A text of the Regulation can be obtained from the office of Gunnar Wiegand (Patricia O'Connor - tel. +32 2 299 05 01- e-mail: kathleen.o'connor@cec.eu.int ; Rita Piovano +32 2 299 01 40 - e-mail rita.piovano@cec.eu.int ).

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(1) Council Common Position 2001/56/CFSP on Afghanistan of 22.01.01 - OJ L21/1 of 23.01.01; Council Common Position 2001/154/CFSP concerning additional restrictive measures against the Taliban of 26.02.01 - OJ L51/1 of 27.02.01 Back

(2) Council Regulation (EC) No 467/2001 of 6.03.01 on prohibiting the export of certain goods and services to Afghanistan, strenghtening the flight ban and extending the freeze of funds and other financial resources in respect of the Taliban of Afghanistan - OJ L67/1 of 09.03.01; Commission Regulation (EC) Nr 1354/2001 of 04.07.01 as regards persons and entities covered by the freeze of funds and organisations and agencies exempted from the flight ban respect of the Taliban of Afghanistan. Back