Summary

The terrorist attacks of September 11th have focussed the attention of legislators around the world on measures to combat money laundering and the funding of terrorism. Many of the measures introduced by governments in the US and in Europe place additional responsibilities on financial firms and markets to help in the fight against terrorism. By and large, the financial community is meeting this challenge. As one of the primary targets of the attacks, the financial services industry has been keen to assist the authorities as much as possible. Even so, banks, regulators and markets face the difficult task of striking the correct balance between the imperative of stamping out illegal practices, and respecting the interests (including privacy) of legitimate customers. Internationally active firms have the complicated task of complying with regulation in a multitude of jurisdictions. There is a genuine need for enhanced global cooperation among nations and between governments and the financial community if these efforts are to be successful.

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What was the immediate impact of September 11th on the global financial system?

The terrorist attacks on the World Trade Centre on September 11th 2001 impacted the financial services community on a number of levels. In terms of loss of life, destruction of physical infrastructure, and disruption of communication networks, the brunt of the attacks was borne by the financial industry. The choice of target represented a deliberate attack on the global financial system, of which the World Trade Centre was arguably the most visible symbol.