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Brown urges terror 'step change' Brown outlines terror crackdown
(about 1 hour later)
Chancellor Gordon Brown is to call for a "step change" in efforts to cut off funding to terrorist groups. Covert intelligence will be used for the first time to seize the assets of terrorist groups under new measures being outlined by Gordon Brown.
He will outline plans that could allow the government to use covert intelligence to freeze suspects' assets for the first time. A new terrorism order will give the Treasury the power to stop funds reaching anyone in the UK suspected of planning terror attacks.
In a speech on security issues, he will say that spending on anti-terror policies is a priority. "There will be no hiding place for those who finance terrorism," he said.
The address will be seen as a further attempt by Mr Brown to bolster his leadership credentials. The address will be seen as a further attempt by the chancellor to bolster his leadership credentials.
Terror plots 'Terrorist challenge'
Mr Brown, who is widely tipped as a successor to Tony Blair, is set to outline new powers that will involve controlling terror suspects' access to benefits to ensure they cannot be "misused". Mr Brown, who is widely tipped as a successor to Tony Blair, said his department "will take the lead in targeting terrorist finance and abuse of the global capital system".
Economic secretary to the Treasury Ed Balls, the chancellor's closest political ally, is also set to brief MPs on the proposals later on Tuesday. In a speech entitled "meeting the terrorist challenge", he emphasised the role of forensic accounting in tackling terror.
We've actually played a part in disrupting four different suspected terrorist plots Ed BallsEconomic Secretary We will also target the financial transactions of terror suspects operating in the UK Gordon Brown
He says the scheme is already working well for the government. He said the techniques have so far "tracked an alleged terrorist bomb maker" who used multiple identities, multiple bank accounts, third parties and third countries to purchase bomb making equipment, to an overseas bomb factory.
"We have actually acted over this year to freeze 188 different accounts," he told BBC News 24. "Our aim is simple: just as there be no safe haven for terrorists, so there be no hiding place for those who finance terrorism," he said.
"We've frozen around £500,000 in terrorist assets. We've actually played a part in disrupting four different suspected terrorist plots." He compared the impact of forensic accounting to that of finger printing in the late 19th Century and DNA in the late 20th Century.
Mr Brown will use his speech to emphasise the role of forensic accounting in tackling terror. Combining the technique with the expertise of the private, financial and public sectors, could result in the creation of a modern equivalent of the Bletchley Park - the experts who cracked the Nazis' Enigma Code during World War II, he said.
He will compare the impact of such investigations to that of finger printing in the late 19th Century and DNA in the late 20th Century. This could be used to address "three of the most dangerous sources of terrorist finance" - charities, money service businesses and financial transactions.
Troops tax cut Money laundering
Mr Brown will reiterate his support for the government's policy of extending police powers to detain terror suspects for more than 28 days without charge. Mr Brown said many charities and donors had been exploited by terrorists.
Bureaux de change, cheque cashers and money remitters were unde review because they are "known to be open to abuse as a source of terrorist finance", he said.
The government will introduce a licensing system, with more stringent requirements for firms to keep records and tougher action against non compliance.
"We are consulting now on new proposals against money laundering," said Mr Brown.
"We will also target the financial transactions of terror suspects operating in the UK.
"Tomorrow the Privy Council will lay before Parliament a new terrorism order which will give the Treasury the power to stop funds reaching anyone in the UK suspected of planning terror or engagement with terror ....
"For the first time we will use closed source evidence where it is necessary to take preventative action to freeze assets. This means acting on the basis of classified intelligence."
Control orders
To make the operation of the system accountable to Parliament, a special advocate procedure will be put in place to ensure "a fair and consistent hearing of cases".
Mr Brown also reiterated his support for the government's policy of extending police powers to detain terror suspects for more than 28 days without charge.
"Preventative control orders - to prevent, restrict or disrupt involvement in terrorist activity - are a necessary part of our approach and the debate about their future is so important," he said.
"I believe that if the evidence shows it necessary to go beyond 28 days, we should be prepared to do so."
The independent reviewer of terrorism law should be given the explicit power to look at and report on any case which goes beyond the 28 day limit, he said.
Extremism
Ministers were defeated over plans to increase the limit to 90 days, outlined in the Terrorism Bill.Ministers were defeated over plans to increase the limit to 90 days, outlined in the Terrorism Bill.
The government said this amount of time was needed to carry out complex investigations, but critics argued this would be excessive.The government said this amount of time was needed to carry out complex investigations, but critics argued this would be excessive.
Mr Brown is also likely to make reference to an announcement set to be made later by Defence Secretary Des Browne that troops serving in Afghanistan and Iraq will get a cash bonus to pay off their tax bill. Mr Brown also called on "moderate Muslims" to help "tackle at root the causes that risk driving people into the extremists' hands".