Terrorist financing

France, hit by terrorist attacks earlier this month, led the calls for new measures, asking for tighter cooperation on sharing intelligence related to money laundering, tougher legislation on freezing suspects' assets, and improving the ability of customs services to track things like gold.

"The terrorist attacks that hit Paris and the ones that were thwarted in Brussels show this is how those terrorist groups finance themselves, with small-scale mechanisms, small money transfers concealed by anonymity," said French Finance Minister Michel Sapin.

The aim, he said, was "to accelerate other complementary measures to be able to locate all these small movements that are at the heart of terrorist financing."

Tracking small anonymous transfers

These measures would include improving the exchange of information between national anti-money laundering agencies and the monitoring of money transfers between EU countries and what Sapin called "danger zones."

Sapin said European countries "must change regulations ... to better monitor small transfers that are covered by anonymity." The measures would affect not only payment transfer companies but also other ways of making anonymous payments, Sapin said. Officials also mentioned virtual payment systems.

He added that he expected a good reception for the proposals from EU finance ministers "because terrorism affects every country."

The European Parliament's justice and home affairs committee was also due Tuesday to vote on the package, which was agreed in principle with member states last year. The full plenary must give its approval for the measures to pass into law.

"We stay united with France in the effort against terror," added Danish Economy Minister Morten Ostergaard. "Stopping the financing of terror is a crucial point."

Coordination necessary

Though security against terrorism is principally an issue for individual member states, the EU has long been looking for ways to improve coordination, since many terrorist organizations function internationally.

Hundreds of European-born people have traveled to Syria and Iraq to fight in the Syrian civil war - an unknown number of them have also joined the Islamist militia "Islamic State."

The Paris attacks were a "stress test of our system," European Commission official Matthias Rutte told EU lawmakers on Tuesday. He said the Commission is now working to identify any gaps in EU legislation that make it easier for terrorists to operate.

bk/hg (dpa, AP, Reuters)