12 October 2001
U.S. Freezes Assets of 39 More Suspected of Aiding Terrorism
(Senate, House committee pass money laundering measures) (660)
By Kathryn McConnell
Washington File Staff Writer
Washington -- The United States has blocked the assets of 39 more
individuals and entities linked to terrorism, and U.S. officials
promised to add other individuals and groups to the list in coming
weeks and months.
Secretary of the Treasury Paul O'Neill told reporters October 12 that
the 39 new names include "either wanted terrorists or who are know to
financially support terrorism." On September 24, the Treasury
Department released an initial list of 21 individuals and groups whose
U.S. assets were frozen.
In each case, Treasury General Counsel David Aufhauser said, there was
"compelling substantial and credible evident to take immediate
action." Also briefing were Treasury under secretaries Jim Gurule and
John Taylor.
The latest announcement follows October 11 passage by the Senate of an
anti-money laundering bill similar to one approved the same day 62-1
by the House of Representatives Financial Services Committee.
Noting that 66 countries have asset-blocking orders in force, Taylor,
under secretary for international affairs, said that 44 additional
countries have expressed willingness to join the international effort
to disrupt terrorists' financing. The coordinated blocking process "is
expanding very rapidly," he said.
In an effort to encourage greater global participation in the sharing
of financial information and the blocking assets, Taylor said, the
United States and the International Monetary Fund (IMF) will provide
technical assistance to countries that ask for help.
"There has been an unprecedented degree of cooperation among allies"
to block assets, Taylor added. Challenged as to the extent of Saudi
Arabia's anti-terrorism efforts, Taylor said that "we have every
indication that they are cooperating and will plan to take actions
going down the road that fulfill the commitment to cooperate."
Treasury officials would not describe what they have learned about the
ways terrorists move money around the world.
"I don't think that it would be wise to go ahead and disclose to the
world what we know about how these terrorist organizations move
money," Under Secretary for Enforcement Gurule said. "We want to keep
them guessing with respect to what we know."
He added that just because a name is not on the list of identified
persons and organizations linked to terrorism "does not mean it is not
suspect." The 39 names announced October 12 include six entities and
33 individuals.
The House is expected to act within days on passing the "International
Money Laundering Abatement and Anti-Terrorist Act of 2001." Both House
and Senate versions of the bill would make it illegal to raise money
for terrorist organizations. They would require financial institutions
in the United States to identify large depositors and prohibit the
institutions from doing business with what are called "shell banks,"
which have no physical presence in any country. The bills would also
require financial institutions to establish "due diligence" procedures
to prevent, detect and report possible instances of money laundering
and would authorize the Treasury secretary to establish minimum
standards for institutions to follow in developing procedures.
The bills would also authorize law enforcement authorities to monitor
underground banking systems, or networks of brokers, that enable
individuals to transfer cash from one country to recipients in another
country without the funds crossing borders or the transactions
recorded. The paperless banks, known as "hawalas", operate in the
Middle East and Asia.
A major difference between the Senate and House bills concerns
Internet gambling, which the Federal Bureau of Investigation has
identified as a vehicle for money laundering. The House committee
version would ban such gambling.
Once passed by the full House, the difference in the House and Senate
versions must be resolved. A final anti-money laundering bill must
then go the President Bush for signature to become law.
(The Washington File is a product of the Office of International
Information Programs, U.S. Department of State. Website:
http://usinfo.state.gov)
|
NEWSLETTER
|
|
Join the GlobalSecurity.org mailing list
|
|
|
