[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Friday, 6 July 2007, 17:59 GMT 18:59 UK
Anger over business 'terror list'
Dollar bills next to a computer keyboard
The SEC claims it is helping investors avoid "subsidising terror"
The US financial regulator has angered some of the world's largest firms by highlighting their links to countries designated as state sponsors of terror.

The Securities and Exchange Commission (SEC) has listed firms on its website with business connections to Cuba, Iran, North Korea, Sudan, and Syria.

It says this will allow investors to make more informed choices about where they put their money.

But businesses say that the list is ill-conceived and misleading.

Siemens, BP, Unilever, HSBC, Nokia and Benetton are among the businesses that have been "named and shamed" on the SEC's website.

The list could needlessly discourage international firms from listing their securities in the US
Institute of International Bankers

Companies were added to the list if any of the offending nations appeared in their annual report.

'Needlessly discouraging'

The SEC defended the scheme saying that it allowed greater disclosure about the dealings of businesses.

"No investor should ever have to wonder whether his or her investments or retirement savings are indirectly subsidising a terrorist haven or genocide state," said SEC chairman Christopher Cox.

But business and humanitarian groups have argued that snippets of annual reports do not make clear to what extent companies are involved with the targeted countries.

Oil services firm Baker Hughes, which has been included on the list, ended its links with Sudan two years ago and states that it will prohibit any business activity involving these countries.

The Institute of International Bankers, the body representing international financial institutions in the US, called the SEC's list "misleading", and compiled "without regard to the materiality of their dealings, if any, with the five countries".

It added: "The list could needlessly discourage international firms from listing their securities in the US."


SEE ALSO
US launches terror trading probe
03 Oct 01 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific