U.K. To Change Focus Of Terror Fight?

Britain's treasury chief outlined steps Tuesday designed to cut off terrorism funding, declaring in a major speech on security issues that no safe haven should exist for terrorists.

Gordon Brown laid out a multifaceted approach to combating terror in remarks seen as part of a bid to bolster his public image as he makes a case to succeed Tony Blair as prime minister.

The speech touched on tightening border controls, new asset-seizure laws and proposals to extend the length of time suspects can be held without charge.

"There should be no safe haven in the world for terrorists and there should be no hiding place anywhere in the world for those that fund them," Brown told an audience of academics and reporters at the Chatham House think tank in London.

Brown emphasized shared values between the United States and Britain in fighting terror and promised to make security a high priority in his review of government spending.

"Closer cooperation between America and Europe in addressing the roots of terrorism should lead to practical new approaches to isolating extremism," Brown said.

As part of new measures to combat terror, Brown said Britain would now use classified intelligence to freeze assets of those suspected of having links to terrorism.

The new measures allow law enforcement agencies to keep sources of information under wraps after it is used in tracking down and freezing bank accounts, Brown's top deputy, Economic Secretary Ed Balls, said Tuesday.

A terrorism finance analyst contracted by the U.S. government told CBSNews.com that Tuesday's announcement may have broader implications for the way the U.K. fights terrorism.

Timothy Wittig, President of TerroristFinancing.com says it may indicate that Brown, likely to take over from Blair in a matter of months, "will make fighting terrorist financing the center of his overall counterterrorism strategy, representing a shift away from the Blair and Bush approaches."

Wittig says the proposal could be a strong tool in the fight against terrorism in the U.K. if it is adopted by the government and accepted by the public.

"It would help isolate 'homegrown' terrorists from many of the funding channels, such as charities and cross-border remittances, which have been used by terrorists in the U.K. in the past. This would likely disrupt the ability of all but the most well-connected and professional terrorist from receiving enough funds to execute a successful operation," Wittig said.

He tells CBSNews.com's London bureau that the challenge will be for the government to use the legislation without violating the trust of citizens whose bank accounts could be seized "without a public hearing or explanation."

"In general, the U.K. has much more stringent privacy laws than the U.S. In fact, there is no law that prohibits the U.S. government from gaining access to an individual's financial records from a 'third party' i.e. a bank," explained Wittig.

However, he says that due to the structuring of U.S. counterterrorism laws, financial disruption is underused as a tool against terrorism in the United States. "In this respect, Brown's proposal would present a distinct alternative to the Bush administration's military-led counterterrorism strategy," Wittig said.

TerroristFinancing.com is also contracted by banks and other private and public institutions to provide research and analysis on the subject matter, which has come into high demand since the Sept. 11 attacks.

Britain has frozen nearly 200 bank accounts suspected of being linked to terrorism since the Sept. 11 attacks in the United States.

In the last year alone, businesses have also reported more than 2,000 suspicious transactions leading to 650 investigations in Britain and overseas, Brown said, citing progress in drying up the funds that support terror groups.

Around $934,000 of suspected terrorist funds have now been frozen, in the U.K., according to Balls. He said the government would also seek to strengthen regulations on currency exchanges to tackle rogue operations that launder money.

The treasury plans to publish a report with recommendations to protect charities from becoming unwittingly involved in financing terrorism.

In August, Britain's Charity Commission, on the advice of the treasury, launched an investigation into the Islamic charity Crescent Relief over suspected links to a plot to blow up U.S-bound airliners.