The nations are confronting new and evolving terrorist networks including ISIS, al Qa'ida, Hizballah, Lashkar–e-Tayyiba, the Taliban, and the Haqqani Network.

The US and Saudi Arabia will jointly establish the Terrorist Financing Targeting Center, a new initiative that seeks to prevent dirty cash and illicit gains falling into the hands of terrorists, the US Treasury has announced.

The TFTC will leverage existing tools and formalizes cooperation between the US, Saudi Arabia and partners in the gulf to counter terrorist financing, the US Treasury said in a statement. 

The government body described the initiative as a “collaborative approach to confronting new and evolving threats arising from terrorist financing”.

The arrangement between the two nations comes as financial regulators continue to fight the flow of dirty money amid a global battle against money laundering. 

"This new Terrorist Financing Targeting Center will enhance existing tools and cooperation with partners in the Gulf to forcefully address evolving threats," said Treasury secretary Steven Mnuchin. "Treasury will offer the vast expertise of our office of terrorism and financial intelligence to this creative new effort. We will co-chair the TFTC with Saudi Arabia, and will work collaboratively with the countries of the Gulf Cooperation Council to counter these global terror networks."