(AP) The global campaign against terror has pushed al Qaeda underground but hasn't stopped the flow of money and fresh recruits to carry out new attacks, a U.N. draft report says.

Nearly a year after al Qaeda attacked the United States on Sept. 11, the terrorist network has established cells in at least 40 countries and is well entrenched in Europe, the Middle East, North Africa, and many parts of Asia, the report released Thursday says.

The network has developed operational links with other militant Islamic groups, gained new recruits, and found new ways to channel millions of dollars and a variety of weapons to its supporters, it said.

"Al Qaeda, despite the successful inroads made against it over recent months is, by all accounts `alive and well' and poised to strike again how, when and where it chooses," the report said.

The draft report was prepared by an expert group authorized by the U.N. Security Council to monitor U.N. sanctions.

Under a council resolution adopted unanimously in January, all nations must freeze the finances and impose arms embargoes and travel bans on individuals and groups associated with Osama bin Laden, al Qaeda, and the Taliban — wherever they are in the world.

A total of 234 individuals and groups are currently on the U.N. list of those whose assets should be frozen, but the report criticizes many countries for failing to add suspected al Qaeda members, and some European countries for hesitating to freeze assets. It cited 43 individuals who should be on the list, but aren't.

The United States and Italy said Thursday they want 11 other individuals and 14 organizations with alleged ties to al Qaeda put on the list. Italy's Economic Ministry said in a statement that "many of the individuals on the list are formally under investigation in Italy and some of them have already been convicted for terrorist and al Qaeda-related crimes."

The draft report, which will be presented next week to the Security Council committee monitoring sanctions, said sanctions and other measures adopted by the international community have had "a marked impact" on al Qaeda, causing it to go underground, "to reposition its assets and resources, and to seek new recruits."

But the terrorist network continues "to pose a significant international threat," in part because of its loose worldwide structure, its ability to work with — and within — Islamic groups in militant countries, its backing from extremists inspired by bin Laden, and its continuing financial and logistical, it said.

Despite initial successes after Sept. 11 in locating and freezing some $112 million in assets belonging to al Qaeda and its associates, the report said only about $10 million has been frozen since January.

The U.S. Treasury Department countered that the money seized was "the narrowest measure of success" and what counts is destroying the financial infrastructure of terrorism.

Citing information from government officials and other sources, the U.N. experts said al Qaeda is continuing to receive financial support from bin Laden's personal inheritance and investments, from its own members and supporters, and from charitable organizations.

Estimates of the value of the portfolio managed on behalf of bin Laden and al Qaeda, by unidentified intermediaries, range from $30 million to $300 million — including investments in Mauritius, Singapore, Malaysia, the Philippines and Panama, the report said. But it provided no sources or details.

"Private donations to al Qaeda from wealthy supporters, estimated at up to $16 million per year, are believed to also continue, largely unabated. Al Qaeda also is believed to extort money sometimes using threats to businesses or individuals," it said.

"The funds collected and disbursed by a number of Islamic based charities is proving particularly difficult for governments to monitor and regulate," the report said, called on states to exercise greater surveillance over the operation of charities.

Many countries in Europe, North America and elsewhere have taken steps to tighten banking regulations and to trace and block financial transactions, which has led al Qaeda to transfer much of its financial activities to Africa, the Middle East and Asia, the draft report said.

Even before Sept. 11, it said, al Qaeda was believed to have transferred some of its exposed assets into untraceable assets such as gold, diamonds and other precious gems. Al Qaeda is now believed to rely more heavily on hawala, an informal network for transferring funds outside normal banking and government controls.