The State Department Annual International Narcotics Control Strategy Report for 2007 provides an international overview of the efforts of countries around the world to implement and improve Counter Terrorism Financing regimes. Most countries are progressively implementing adequate regulations. Yet, most exposed countries are still lacking willingness, proper regulations, training or coordination to fight terrorism financing.
The report reflects the following major causes of concern:
• 87 countries have not yet criminalized terrorism financing, or 40% of the total countries.
• 56 countries have not yet ratified the International Convention for the Suppression of the Financing of Terrorism, including Pakistan, Saudi Arabia, Kuwait and Malaysia.
• Several exposed countries have taken no legal action to prevent the misuse of charitable and other nonprofit entities that can be used as conduits for the financing of terrorism, while weak implementation of regulations is a cause of concern as to the potential for the financing of terrorism through the misuse of charities, including in Kuwait, Pakistan and Saudi Arabia. The Saudi High Commission for Charities to oversee Saudi charities with foreign operations, announced in 2002, is yet to be formally established.
• Several countries still lack a broad definition of terrorism to properly fight all aspects of terrorism financing. This is the case for Turkey which maintains a narrow definition of terrorism applicable only in terms of attacks on Turkish nationals or the Turkish state.
• Other countries lack the training to recognize and investigate terrorism financing, including Algeria and Morocco.