The Arab Gulf States Institute in Washington published a report titled "Combating Terrorist Financing in the Gulf: Significant Progress but Risks Remain", by Celina B. Realuyo, Non-Resident Fellow at the Arab Gulf States Institute in Washington and former US State Department Director of Counterterrorism Finance Programs. The report commended the Gulf States for taking steps to stem the flow of funds to terrorist groups over the past decade. For a long time, the Gulf States have realized the significance of the threat to the international financial system by the flow of funds to terrorism. Over the past two decades, they have implemented various national, regional and international measures to tackle the financing of terrorism. The Gulf States were among the leading countries to implement the 40+9 recommendations for combating money laundering and the financing of terrorism, initiated by the Financial Action Task Force (FATF) in 1990. They attend the FATF meetings in their capacity as members of the Gulf Cooperation Council (GCC) and they comply with all international standards in this area. The FATF was one of the earliest international bodies to combat money laundering and the financing of terrorism in the past 20 years as it was established by the G-7 Summit that was held in Paris in July 1989. It issued a report containing a set of 40 recommendations to deal with issues of money laundering and to safeguard the integrity of the financial system. The FATF Recommendations were revised in 1996, 2003, and most recently in 2012 to ensure that they remain up to date with regard to the threats posed by money laundering. As a result, the FATF issued nine Special Recommendations to deal with terrorist financing that were added to the previous 40 recommendations. The responsibilities of the task force have expanded to include issues of anti-corruption and the financing of proliferation of weapons of mass destruction. The taskforce is drawn from 34 countries, the European Commission, the GCC, and a number of observers from relevant organizations. The Gulf States, represented by the Secretariat General of the GCC, are keen to participate in the taskforce's financial meetings. The initial task of the FATF is to conduct a joint-assessment process on member and non-member states with a view to their compliance with international standards and its Recommendations (the 40 recommendations on combating money laundering plus the nine recommendations on the financing of terrorism). GCC member states underwent the joint-assessment process for the first time during 2001-2004 in the second joint-assessment round of the financial taskforce. The taskforce commended the GCC member states' efforts in combating money laundering and the financing of terrorism as well as in achieving the scores required in this area. At its meeting in Brisbane in June 2015, the FATF unanimously adopted a resolution to grant Saudi Arabia observer status as a prelude to gaining full membership according to the internal policies and procedures for joining the taskforce. The resolution was made following a hearing of the results of a field visit report carried out by a high level delegation to Saudi Arabia from June 1 to 4, 2015. The delegation commended Saudi Arabia's prominent role in combating money laundering and the financing of terrorism and proliferation of weapons of mass destruction, through an integrated program involving all the relevant authorities in the Kingdom. GCC member states are founding members of the Middle East and North Africa Financial Task Force (MENAFATF) after 14 Arab countries decided to establish MENAFATF at a meeting held in Bahrain on November 30, 2004. It is one of eight worldwide regional taskforces that play a role similar to and supportive of FATF with respect to the commitment of countries in the region to the FATF recommendations on combating money laundering and the financing of terrorism. The MENAFATF is voluntary, co-operative and independent in nature and headquartered in the Kingdom of Bahrain, while the Secretariat General is an observer member in the taskforce. In the third round of the joint-assessment process, the GCC member states were assessed in a joint task between the FATF and the MENAFATF. The MENAFATF commended the role played by the GCC member states in combating money laundering and the financing of terrorism as well as achieving the scores required to comply with applicable measures in this area. On another note, four of the GCC member states, the UAE, Bahrain, Saudi Arabia, and Qatar, are members of the Egmont Group of Financial Intelligence Units. The Egmont Group was founded in 1995 and made up of financial intelligence units and bureaus aiming to combat money laundering. It comprises 116 member states across the world which play an active role in exchanging information on money laundering and the financing of terrorism. It is hoped that Oman and Kuwait will join the group in the near future. The Secretariat General has attended the Egmont Group's annual general meeting since the 17th general meeting which was held in Qatar in 2009. Finally, the Gulf States are working tirelessly to combat terrorism and stem its financing. They are furthering their efforts through the FATF, MENAFATF and the Egmont Group; however, international concerted effort is necessary for these mechanisms to continue to work worldwide as effectively as possible. The Gulf States are bound to these groups and incessantly work to enhance cooperation through them at regional and international levels in order to protect their security, stability and prosperity, as well as to protect the global financial system from terrorist organizations. Dr. Ibrahim Al-Othaimin is a Middle East affairs specialist and security analyst based in Riyadh. He can be contacted at [email protected]. Follow him on Twitter @Alothaimin
