G7 takes aim at terrorist financing; rifts on policy remain

An "action plan" issued after the talks by G7 finance ministers and central bank governors at a hot springs hotel in northern Japan called for increased exchanges of information on financial intelligence, reducing the level of cross-border transactions subject to disclosure and collaborating on targeted sanctions for terrorists' financial networks, including freezing assets.

Most of the governments of the G7 favor more pro-active government spending to help support flagging growth and spur demand, while Germany has remained more conservative on fiscal matters, regarding structural reforms as crucial.

A recent rise in the value of the Japanese yen against the U.S. dollar is adding to pressures on Japanese companies who had reaped record profits as the yen weakened in recent years, fattening earnings brought back to Japan in yen terms.

The talks also explored ways to improve the "integrity" of global financial flows, especially following the release of the so-called "Panama Papers," which disclosed details of offshore companies set up for wealthy individuals and companies by the Panama-based law firm Mossack Fonseca.

Sapin, the French finance minister, said the group also made progress on how to help Greece resolve its dire troubles over its debt, most of which is owed to European creditors.

"[...] everything is decided, we can't consider it done, but I think all the elements for an agreement are today on the table," Sapin said.