09/27/2002

EDITORIAL NUMBER=0-10155

DISMANTLING TERRORIST FINANCES

Since the September 11^th, 2001, terrorist attacks, the United States has sought to identify, disrupt, and dismantle the financing networks of terrorist groups like al-Qaida.

The U.S. and its allies are attacking the terrorists' methods for transferring funds across borders and between terrorist cells, whether through banks, businesses, subverted charities, or by other means. More than three-hundred investigations into terrorist finances have been launched in the U.S. alone. And dozens of countries have joined in freezing assets so terrorists cannot travel freely or finance their operations. As U.S. Treasury Secretary Paul O'Neill said, "If you have any involvement in the financing of [terrorism], you have two choices: cooperate in this fight, or we will freeze your U.S. assets; we will punish you for providing the resources that make these evil acts possible."

Over the past year, over one-hundred million dollars in assets belonging to suspected terrorists have been frozen worldwide in more than five-hundred accounts. The U.S. has also exposed and dismantled terrorist financial sources. One example is the al Barrakaat financial network.

The United Arab Emirates-based al Barrakaat conglomerate operated in forty countries with business ventures in telecommunications, construction, and currency exchange. But it was, in reality, a source of millions of dollars in funding and money transfers for Osama bin Laden's al-Qaida terrorist network.

Last November, U.S. Treasury agents shut down eight al Barrakaat offices in the U.S. And U.S. allies around the world, including al Barrakaat's home country, the United Arab Emirates, worked to cut al Barakaat out of the world financial system.

Al-Qaida and other terrorist organizations are suffering financially as a result of the war on terrorism. Potential donors are more cautious about giving money to organizations they fear might give the money to terrorists.

In addition, greater regulatory scrutiny in financial systems around the world is making it harder for those who would support terrorist groups and activities. As President George W. Bush has said, "We will direct every resource at our command to win the war against terrorists: every means of diplomacy, every tool of intelligence, every instrument of law enforcement, every financial influence. We will starve the terrorists of funding, turn them against each other, rout them out of their safe hiding places and bring them to justice."