The worldwide war on terror is still on the lose-side, as al-Qaeda is still posing as big a threat as ever, according to an alarming United Nations report.

Its conclusions say many countries are not doing enough to counter the threat of Osama bin Laden's terror network.

UN experts believe al-Qaeda is still capable of carrying out major terror attacks because virtually no country has completely cut off its cash flow.

Efforts to block the sale of weapons and the movement of terror suspects "have not been effective", the report says.

After the 9/11 attacks in the US, the UN Security Council passed a resolution requiring member nations to freeze assets, block arms sales and restrict the travel of any person or group believed to be linked to terror.

But not one nation has reported stopping either the travel or the sale of weapons to anyone on the UN list of those suspected of links to al-Qaeda, the experts said.

The report is pessimistic about an early end to attacks from al-Qaeda associated terrorists, as they have managed using minimal resources and exploiting worldwide publicity to create an international sense of crisis.

The March train bombings in Madrid relied on mobile phones and mining explosives, which are not covered by the sanctions, UN experts remind.

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