Money underpins terrorist activity - without it there can be no attacks, training, recruitment, assistance or welfare support for terrorist groups.

By targeting their sources and supply of money we can significantly disrupt their ability to strike – this is a key strand to our overall strategy against terrorism.

The main goals of the government’s strategy are to:

• decrease the amount of funds raised in the UK for terrorist purposes
• identify and disrupt terrorist facilitators, and stop the flow of funds overseas where they impact on UK interests
• to encourage and assist other countries to disrupt terrorist finance.

The UK's strategy for countering international terrorism is explained in full in the Contest report.

How do we cut off terrorist funds?

We have several methods of disrupting terrorist fundraising.

We can freeze the assets of individual, terrorist groups and groups linked to them. This prevents them from raising or moving funds.

Tracing financial flows within a single country is relatively simple. But we need the assistance of other countries to trace flows abroad to their final destination or source.

Financial investigators rely on co-operation and exchange of information for successful investigations and prosecutions.

Countries are required to act against terrorist financing under UN Security Council Resolution 1373. The UN Security Council's Counter-Terrorism Committee monitors to see if countries meet their obligations under the resolution.

Who do we work with?

We work closely with other UK Government departments, the intelligence and law enforcement agencies and the financial sector.

The UK is at the forefront of international activity in this area and we closely cooperate with other governments.

Deporting people with assurances

The Home Secretary may deport foreign nationals suspected of involvement in terrorism on the basis of diplomatic assurances.

The UK will not deport an individual where there are substantial grounds for believing that there is a real risk of torture or other inhuman or degrading treatment or that the dealth penalty will be carried out.

Any decision to deport an individual is subject to appeal through the UK courts and the courts will decide whether a proposed deportation is consistent with our human rights obligations.

The UK has signed Memoranda of Understanding (MOU) on deportations with assurances with Jordan, Lebanon and Libya.

MOUs are accompanied by assurances relating to named individuals which safeguard against the ill treatment of those being returned.

Separate arrangements based on an exchange of letters have also been made with Algeria, one from the Prime Minister to the Algerian President and one from the Algerian President to the Prime Minister.

We are negotiating similar arrangements with a number of other countries.