This analysis begins with a study of the global and European legislative initiatives designed to address the terrorism funding, followed by an examination of how these initiatives have been framed in Dutch law. The global initiatives reviewed include the United Nations International Convention for the Suppression of the Financing of Terrorism (1999); the Financial Action Task Force (FATF), which was established in 1989 to combat money laundering and terrorist financing; and U.S. policies used in attempts to dismantle terrorists' financing networks. In Europe, relevant initiatives include the Council of Europe's creation of the Multidisciplinary Group on International Action Against Terrorism, which is an intergovernmental committee of experts, and the drafting of a European Convention on the Prevention of Terrorism. The European Union has facilitated increased police and judicial cooperation among member states in developing international legal instruments and measures designed to counter terrorist funding. The Dutch Government has adopted a number of measures to counter the financing of terrorism. They can be divided into two groups: reinforcement of the monitoring of compliance with existing laws designed to counter money laundering; and measures that reinforce financial investigations through the exchange of information and the prevention of abuse by legitimate entities who may handle the funds of terrorist groups. This paper summarizes specific initiatives. These measures are likely to be effective and harmonious in combating terrorist funding through legal financial entities; however, this is likely to displace terrorism financing to underground or illegal channels, which are even more difficult to control. It may also require terrorists to resort to cheaper means of conducting attacks on civilian populations.