People who provide funds or resources to terrorists face up to 14 years' jail under the anti-terror law to be gazetted in April, security officials said yesterday. Those who aid the financing of a terrorist act will be jailed for as many as seven years, while failure to report money laundering by terrorists will be punishable by fines and up to two years' imprisonment. Secretary for Security Regina Ip Lau Suk-yee said officials were finalising the controversial bill to ensure it complied with a United Nations anti-terror resolution passed last September. The main purpose of the new law is to stop money-laundering in the SAR by terrorists, she said. Deputy Secretary for Security, Timothy Tong Hin-ming, said a mechanism similar to the existing money-laundering law targeting organised crime would be adopted. That law requires financial institutions to report any suspicious flow of money. The new law's penalties are similar to those specified in Western anti-terror laws, Mr Tong said. He said the Government had informed Beijing of the content. The Government said it would adopt the British definition of terrorism - that is, the use or threat of action for the purpose of advancing a political, religious or ideological cause. The action must involve serious violence against life or property, endanger life, or create a serious risk to public health or safety. Under the anti-terror proposals, the Chief Executive would be empowered to name terrorist groups. Mrs Ip pledged to legislators earlier this month that the Government would not use the law to curb Falun Gong activities.