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Global terror

Brussels warned over terror finance law

By Tobias Buck in Brussels

Published: February 2 2005 18:46 | Last updated: February 2 2005 18:46

Brussels is being warned that a draft European Union law to combat money laundering and terrorist financing could inflict "drastic damage" on the workings of bond and equity markets in London, the continent's premier financial centre.

The law, proposed by the European Commission last year, forces a range of financial services providers to ensure that they know the identity of their customers as well as the ultimate beneficiaries of the transactions they undertake.

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