IoS returns confidential documents to Treasury as officials promise to tighten procedures

Secret government documents detailing the UK's policies towards fighting global terrorist funding, drugs trafficking and money laundering have been found on a London-bound train and handed to 'The Independent on Sunday'.

The government papers, left on a train destined for Waterloo station, on Wednesday, contain criticism of countries such as Iran that are signed up to the global Financial Action Task Force (FATF), an inter-governmental body created to combat financial crime and the financing of terrorism.

The confidential files outline how the trade and banking systems can be manipulated to finance illicit weapons of mass destruction in Iran. They spell out methods to fund terrorists, and address the potential fraud of …