03 October 2001
Text: Treasury's O'Neill Pledges to Shut Down Terrorist Fundraising
(Urges lawmakers to enhance law enforcement capabilities) (1130)
U.S. Treasury Secretary Paul O'Neill declared October 3 that the
"financial campaign against terrorism is as important as a military
campaign," and pledged to use every available tool "to shut down
terrorist fundraising and dismantle their organizations one dollar at
a time."
Testifying before the House of Representatives' Committee on Financial
Services, O'Neill urged Congress to approve measures to enhance the
ability of law enforcement to identify the groups and individuals that
finance terrorism worldwide.
"Money can be as lethal as a bullet," he said. "If we are to deter and
prevent future calamities, and if we are to root out terrorist cells
that threaten to do violence to our people and our communities, we
have to enlist the active help of financial institutions to hunt down
the financial benefactors who underwrite murder and mayhem."
O'Neill said that the Bush Administration is seeking changes to the
International Emergency Economic Powers Act (IEEPA), which provides
broad authority to impose comprehensive trade and financial sanctions
against foreign terrorists. Officials are also urging measures that
would permit more effective sharing of information between law
enforcement and intelligence agencies.
"Government should not be handcuffed in this endeavor," he said.
Following is the text of O'Neill's testimony, as prepared for
delivery:
(begin text)
DEPARTMENT OF THE TREASURY
OFFICE OF PUBLIC AFFAIRS
October 3, 2001
STATEMENT OF PAUL H O'NEILL
SECRETARY OF THE TREASURY
BEFORE THE HOUSE COMMITTEE ON FINANCIAL SERVICES
Thank you chairman Oxley, Congressman LaFalce and members of the
Committee.
Money can be as lethal as a bullet. If we are to deter and prevent
future calamities, and if we are to root out terrorist cells that
threaten to do violence to our people and our communities, we have to
enlist the active help of financial institutions to hunt down the
financial benefactors who underwrite murder and mayhem.
We have already made an excellent start with the President's Executive
Order and the adoption of a United Nations Security Council
resolution. This U.N. Resolution represents a confirmation by the
global community that an aggressive hunt for terrorist funds is
underway and merits the cooperation of all countries.
The importance of this global campaign cannot be overstated. Building
an action-taking coalition for the financial campaign against
terrorism is as important as a military campaign.
We have set a deliberate course to prosecute that campaign. First, we
are engaged in an effort to identify the potential financial
intermediaries of suspected terrorists and their associates. The
interagency task force we chair includes the CIA, Departments of State
and Justice, the FBI, and the NSC. Second, we are acting on that
intelligence with the issuance of domestic blocking orders that freeze
accounts and bar all trade with terrorist associates. Third, we are
engaged with the FBI in the investigation of the financing of the
September 11th attacks and are making significant contributions in
ferreting out those who financed those horrendous attacks. Fourth, we
are engaged in an outreach to secure the endorsement of our blocking
orders by allies in the G7, the EU and throughout the world. Fifth, we
have begun to link disparate databases and to analyze the patterns of
terrorist financing.
Here at home, you can help arm us with additional legislative tools to
enhance Treasury's capability to track, block and seize those assets;
to secure our borders; and to freely share information about terrorist
activity between law enforcement and U.S. intelligence services.
Our intent is straightforward -- to remove structural limitations that
handicap government efforts to eliminate the violence of terrorism.
To date, the President's program has produced meaningful results. As
this Committee is aware, we have taken action domestically and, just
as importantly, scores of countries have followed suit with bank
freezes and pledges to take measures to heighten scrutiny of
suspicious transactions.
In our effort, we are partnering with the private U.S. banking
industry, which has helped us to interpret and analyze financial data.
Finally, international financial regulators have made clear their
willingness and commitment to provide us with whatever assistance we
may need to track down the assets of international terrorists.
Other countries have been asked to provide assistance under treaties
that provide Treasury and the Justice Department with evidence in the
current probe and to share leads for the pursuit of new names. In
addition, numerous international banks have made plain that they will
assist us in any manner lawfully permitted under their respective
domestic laws.
Additionally, we have formed the Foreign Terrorist Asset Tracking
Center to help identify patterns and terrorist financing practices
discoverable only through inter-agency coordination and analysis. The
Center joins for the first time disparate databases from law
enforcement, the intelligence community, banking regulators and open
access data libraries. The data are then linked to build a mosaic of
terrorist financing activity. This operation allows us to take a
different tack by sustaining a targeted effort at terrorist financing.
This approach is not limited to the episodic, targeted and
staccato-like pace of a case-specific criminal probe. Instead, we are
using intelligence and law enforcement resources to find patterns that
will allow us to address the global problem of terrorist financing.
Now, that is admittedly ambitious, but it is at the core of our
declared end. This hunt is not about money. It is about money that
kills. Our approach is proactive and preventative. Our goal is to
drain the financial lifeblood that allows terrorist to finance and
accomplish their deadly goals, and in doing do we aim to shackle their
ability to strike again.
The Treasury Department is committed to this purpose. It is for that
reason that we believe the provisions of the Administration's
Anti-Terrorism bill are essential. In particular, the IEEPA amendment
that would protect classified data from disclosure would remove
barriers to the successful prosecution of our cause. While I
understand these provisions are not currently a part of the House
Anti-Terrorism package, we are hopeful that they will ultimately be
included. In addition, I look forward to working with this Committee
on some issues not addressed in the anti-terrorism package, in
particular, additional provisions to ensure more effective sharing of
information between law enforcement and intelligence agencies.
Government should not be handcuffed in this endeavor. More can
usefully be done, and Under Secretary Gurulé is prepared to outline
potential additional measures.
But my pledge to you is simple. The Treasury Department will use every
tool we have at our disposal to shut down terrorist fundraising and
dismantle their organizations one dollar at a time. Their moral
bankruptcy will be matched by an empty wallet.
(end text)
(Distributed by the Office of International Information Programs, U.S.
Department of State. Web site: http://usinfo.state.gov)
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