Fight against the financing of terrorism

Countering the financing of terrorism is a core component of the EU’s strategy in the fight against terrorism. As terrorists and their supporters constantly modify their ways to collect, move, store and use funds, the EU needs to adapt its instruments and measures to deny them resources.

Counter-Terrorism Agenda

After a terrorist attack has occurred, urgent action is needed to minimise its impact and allow for the swift investigation and prosecution of the perpetrators (RESPOND). No Member State can do it on its own. Cooperation is needed both at the European level and internationally. The 2020 Counter-Terrorism Agenda sets out specific measures to support financial investigators, proposing the establishment of a network of counter-terrorism financial investigators. It also underlines the importance of the EU US cooperation in the context of the Terrorist Finance Tracking Programme (TFTP), which has generated significant intelligence, helping investigate and detect terrorist plots on both sides of the Atlantic and trace those behind them. 

Network of Counter-Terrorism Financial Investigators

The network, chaired by the Commission, aims to support exchanges among Member States' investigators on techniques and experiences in financial investigations. Its 2025 priorities are the use of cryptocurrencies and new technologies, the use of informal banking systems (e.g., Hawala) and the abuse of NPOs and online service providers (OSP) to finance terrorism. In addition, the network has included sanctions, sanction evasion and the use of the EU Terrorist List to combat terrorism financing among its priorities.

A first international annual strategic conference in the context of this network took place on 2-3 October 2023, involving a broader set of public and private stakeholders. This was followed by a capacity building activity on 18-22 November 2024, which involved trainers from leading providers of specialised tools for tracing crypto assets. 

Counter Terrorism Directive

The Directive on Combatting Terrorism was adopted in 2017. Article 11 of the Directive provides for a comprehensive definition of the terrorism financing offence and obliges Member States to punish such activities as a criminal offence.

EU-US Terrorist Finance Tracking Programme Agreement

The EU signed the EU-US TFTP Agreement with the US allowing for the transfer of financial messaging data from the EU to the US for the purpose of the Terrorist Finance Tracking programme (TFTP). The agreement took effect on 1 August 2010.

The US Treasury Department set up TFTP shortly after the terrorist attacks of 11 September 2001. Since then, the TFTP has generated significant intelligence that has been beneficial for both the US and the EU in the fight against terrorism.

Agreement safeguards and respect of fundamental rights

The agreement between the EU and the US includes appropriate safeguards to accommodate legitimate concerns about security, privacy and respect of fundamental rights. More specifically, the agreement:

• Safeguards data protection rights relating to transparency, rights regarding access, rectification and deletion of inaccurate data;
• Guarantees non-discriminatory rights of administrative redress and ensures that any person, whose data are processed under the agreement, has the right to seek redress in front of US judiciary for any adverse administrative action;
• Acknowledges the principle of proportionality as a guiding principle for its application.

Data monitoring

Under the agreement, Europol assesses whether the request for financial messaging data is necessary for the fight against terrorism and its financing. Europol also verifies that each request is tailored as narrowly as possible to minimise the amount of data requested. If a request for data does not meet these conditions, no data can be transferred.

All searches performed on the provided data are monitored by independent overseers, including persons appointed by the Commission. In accordance with the provisions of the agreement, they have the possibility:

• To review (query or stop), in real time and retroactively all searches performed on the provided data;
• To request additional information for justifying the link of these searches to terrorism and the authority to block any or all searches that appear to be in breach of the safeguards laid down in the agreement.

Reports

As per the agreement, regular joint reviews of the safeguards, controls, and reciprocity provisions are conducted by review teams from the European Union and the United States.

See timeline for the adopted reports.

Cooperation to counter terrorism financing

Cooperation on a global level

The Commission is a member of the international standard-setting body for combatting the financing of terrorism, Financial Action Task Force (FATF), and actively contributes to its work as well as to the implementation of the FATF Recommendations in the EU.

In the Council, the Commission is also an observer of Moneyval, Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism.

Documents

• Counter-Terrorism Agenda (2020)
• Directive to facilitate the use of financial and other information (2018)
• Directive on combatting terrorism (2017)
• Action Plan for strengthening the fight against terrorist financing (2016)
• Council Decision (CFSP) 2016/1693
• Council Regulation (EC) No 881/2002