Ministers act on terrorist financing, debt crises in emerging markets

• Pages: 127-128

Page 127

Following is the statement issued by the finance ministers and central bank governors of the Group of Seven on April 20 in Washington, DC.

We met last night and today, with prospects for the global economy more positive than a few months ago. This is in part a tribute to strengthened international cooperation.We discussed the global economy, international efforts to combat the financing of terrorism, approaches to financial crises, and the importance of more effective development assistance.

We remain strongly committed to combating the financing of terrorism, and we take note of the progress made in implementing our previous Action Plans. As a further and positive step forward in the war on terrorist financing, the Group of Seven finance ministers announced today the first Group of Seven joint designation of terrorist entities and the associated freezing of assets in the Group of Seven countries; the ministers encourage other countries to freeze these assets as well.We again urge all countries to participate in the Financial Action Task Force on Money Laundering self-assessment and to implement quickly the Financial Action Task Force recommendations against terrorist financing.We look forward to the report of the IMF on the efforts it and its member countries are making to combat the financing of terrorism.We urge the IMF and the World Bank to begin conducting their financial sector assessments, incorporating reports on compliance with anti-money laundering and terrorism financing standards based on Financial Action Task Force recommendations.

We are working to ensure that legitimate institutions, organizations, and networks are not misused by terrorists and their supporters.

Page 128

Economic recovery from the slowdown is under way, supported by appropriate and proactive macroeconomic policies that were in part a response to the tragic events of September 11, but downside risks remain, including those arising from oil markets.

Each of us has an ongoing responsibility to implement sound macroeconomic policies and structural reforms to sustain recovery and support strengthened productivity growth in our economies.We welcome the work programs of the Financial Stability Forum and International Accounting Standards Board responding to financial and related vulnerabilities.We look forward to the Financial Stability Forum report by September.We will continue to monitor exchange markets closely and cooperate as appropriate.We...