09 January 2002
Text: O'Neill Reports Progress Against Terrorist Financing
(Blocks assets of two more organizations) (1000)
The U.S. government has blocked the financial assets of two additional
organizations and two individuals suspected of financing terrorism.
Treasury Secretary Paul O'Neill told reporters January 9 that all four
entities are linked to Osama bin Laden's al-Qaida terror network.
The order targets the Afghan Support Committee (ASC) and the Revival
of Islamic Heritage Society (RIHS). According to U.S. officials, the
ASC was set up by bin Laden and has offices in Peshawar, Pakistan, and
Jalalabad, Afghanistan. The RIHS is a Kuwaiti-based non-governmental
organization whose offices in Pakistan and Afghanistan are associated
with the ASC. The Treasury action affects the society's offices in
Pakistan and Afghanistan but not in Kuwait.
O'Neill said the two groups have portrayed themselves as legitimate
charitable organizations but have defrauded donors by diverting money
to support terrorist activities.
The two individuals named in the order are:
-- Abu Bakr Al-Jaziri of Peshawar, the finance chief of the Afghan
Support Committee and formerly bin Laden's chief fund-raiser.
-- Abd al-Mushin Al-Libi, who runs the Pakistan office of the Revival
of Islamic Heritage Society and manages the Afghan Support Committee's
office in Peshawar.
These individuals and organizations "have been stealing from widows
and orphans to fund al-Qaida terrorism," O'Neill said.
"These bad actors will now be pariahs in the civilized world," he
said.
The Treasury secretary lauded the cooperation of U.S. allies around
the world in helping to choke off the money supply to al-Qaida and
other terrorist groups. "Canada and Luxembourg have blocked all the
names we have blocked, and the UK [United Kingdom] has blocked all but
a small handful. The same would be true for the Hong Kong Monetary
Authority," O'Neill said.
He also cited the efforts of the United Arab Emirates {UAE) and of
Switzerland, which has blocked 30 terrorist-related accounts
containing $15 million since September 11.
"Hard currency countries have been leading the charge in the
international effort to destroy the financial infrastructure of
terrorism," O'Neill said.
Following is the text of his opening remarks for the briefing:
(begin text)
TREASURY NEWS
FROM THE OFFICE OF PUBLIC AFFAIRS
January 9, 2002
SECRETARY PAUL O'NEILL STATEMENT
REMARKS ON NEXT TERRORIST ASSET LIST
Good afternoon. Today we are blocking the assets of two organizations
and two individuals who have been stealing from widows and orphans to
fund al-Qaida terrorism. The Afghan Support Committee, branches of the
Revival of Islamic Heritage Society and two of their employees
defrauded well-intentioned donors and turned funds meant for good into
funds for evil. These bad actors will now be pariahs in the civilized
world.
Let me take a moment to update you on our progress in shutting down
these terrorist financiers' access to not only the U.S. financial
system, but the world financial system they rely on to transfer monies
to finance the terrorists' evil acts.
As you all know, those who peddle weapons to the evildoers in the
world don't accept the currency Afghanis. Materials of destruction are
sold on the world market in hard currencies such as dollars, yen,
euros or pounds.
And large quantities of hard currency can only be obtained in the
money centers of the world. Places like New York, London, Dubai, and
Hong Kong. The world financial system is a hub and spoke system, and
money centers are the hubs through which anyone in a remote part of
the world must work to make purchases anywhere else in the world.
Shutting down terrorists' access to money center nations is the key to
preventing them from purchasing the tools of their evil. These are the
choke points in the system, and they are the focus of our attention.
First, here at home we've begun implementing the PATRIOT act,
prohibiting U.S. financial institutions from providing correspondent
accounts to foreign shell banks, and requiring that U.S. financial
institutions take reasonable steps to ensure that foreign banks not
use correspondent accounts to indirectly provide banking services to
foreign shell banks. In addition, we issued a proposed rule requiring
securities brokers and dealers to file suspicious activity reports.
These steps make it harder for terrorists to access the U.S. financial
system.
Second, we've worked with nations around the world to block
terrorists' access to the hard currencies they need to purchase the
tools of terrorism. We have sent teams from the U.S. government to
meet with their counterparts in the Middle East and Europe to further
cooperation.
We have sent technical assistance teams to help nations enhance their
systems for identifying and blocking accounts that finance terrorism.
We also work systematically through global institutions like the
United Nations to engage the entire world in our effort.
Money center nations have taken enormous steps so far in this effort.
Canada and Luxembourg have blocked all the names we have blocked and
the UK has blocked all but a small handful. The same would be true for
the Hong Kong Monetary Authority. Switzerland has blocked 30
terrorist-related accounts containing 15 million dollars (24.9 million
Swiss francs) since September 11. The UAE's action to block the al
Barakaat network effectively shut down the operation worldwide. And
the list goes on. Hard currency countries have been leading the charge
in the international effort to destroy the financial infrastructure of
terrorism.
Because our allies in the money centers around the world are working
with us, terrorists who may have resources hidden somewhere remote can
no longer change that money into hard currency with ease. When the
terrorists have no access to hard currency, they have no means of
purchasing the technology and equipment of terrorism. With each new
step in this effort, the civilized nations of the world add another
brick to the wall that cuts terrorists off from the financing they
need to carry out their evil schemes.
(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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