EU lawmakers could propose tough penalties for bank staffers who egregiously violate financial rules on counterterrorist financing controls, according to the parliamentary member charged with overseeing a new bloc-wide directive. Under a draft of the EU Counter Terrorism Directive proposed by the European Commission in December, member-states would criminalize the funding of recruitment, training and travel by terrorists, including the provision of loans and gifts. EU nations would also harmonize maximum prison terms for terrorists and their financiers. Legislators could amend the draft to criminalize severe compliance failures by financial institutions that facilitate transactions on behalf of terror groups, according...