FRANKFURT (Reuters) - The international body leading a campaign against money laundering aims to expand a crackdown on dirty money with new rules for e-banking, insurance, derivatives and securities trading, according to a memo obtained by Reuters yesterday.

At a meeting next week the Paris-based FATF, or the Financial Action Task Force, aims to revise its so-called 40 Recommendations, a roadmap for financial regulators, to reflect new dangers from money laundering by criminal and terror groups.

"With the increasing technical developments...and the creation of new financial products (such as) derivatives, the methods and techniques of money laundering have changed," said the document, an agenda for next week's FATF plenary meeting.

"Not only banks can be misused to launder money," the document said.

An FATF spokeswoman declined comment. The new rules propose tougher "customer due diligence" procedures for high-risk business areas such as correspondent banking or dealings with people with questionable political histories.

The rules will also be expanded to apply to insurers and securities dealers, not just banks, the document said.

The proposed rules would also crack down on underground financial networks used by criminals to circumvent banking regulators, the document said.

"The logistics of financing terrorism has partially shifted away from financial transactions that take place through supervised financial concessions and international payments systems," the document said.

"Financiers are diverting the money through other channels such as underground banking networks outside licensed financial systems because money there is more transparent, can leave traces and can be more easily frozen," the document said.

The document also praises Russia for "enormous reforms" in its financial supervision efforts, saying Germany, which now holds the FATF rotating presidency, supports a move to make Russia a full FATF member.

Up until October, 2002, Russia was on FATF's famous "black list" of non-cooperating states that flaunted global conventions designed to prevent money laundering.

The 40 Recommendations were initially drafted in 1990 and last reworked in 1996. Once the rules have been approved by FATF member countries, those countries will be required to draft the rules into their national law.