"Disrupting Terrorists' Support -- An Ounce of Prevention"
Articles by U.S. Government Officials
"Disrupting Terrorists' Support -- An Ounce of Prevention"
E.
Anthony Wayne, Assistant Secretary for Economic and
Business Affairs, U.S.
Department of State
Op-Ed in "Jyllands-Posten"
December 13, 2005
This year in Amman,London, Sharm el-Sheikh, and Bali, as well as in Iraq, Israel and Uzbekistan, terrorists have struck without warning or regard for time or place; slaughtering innocent people without regard to age, nationality, creed and profession. The bombs were often crude and cheap, but the attacks required one thing besides explosives or ball bearings: cash.
The international community must step up efforts to disrupt the cash flows used by terrorists to recruit, travel, communicate, train, and execute attacks. The strategic goal is to make it harder, riskier, and more costly for terrorists and those associated with them to conspire and act. We have several multilateral tools at our disposal.
One tool is the coordination of intelligence gathering. This job is not only the responsibility of intelligence or law enforcement agencies. Banks, securities firms, money exchanges and insurance companies have important roles in reporting suspicious transactions to their country's Financial Intelligence Unit (FIU). FIUs may exchange information under appropriate circumstances. More than 80 countries have introduced new terrorist-related legislation, and over 100 have established FIUs.
Another vital tool is the public identification, or "designation," of
individuals and organizations that support terrorism, through national
announcements and international listing by the United Nations. The designation
procedure is strengthened by serious sanctions. These include the freezing of
assets, to choke off the terrorists' immediate access to cash and also to
provide
avenues for intelligence-gathering back to the source of the funding:
accomplices in the terrorist network, front-companies, non-profit organizations,
and side channels used to transfer or smuggle cash.
These UN sanctions alone have yielded quantifiable results. Since 2001, the
UN estimates that almost 60 countries have submitted names to the UN sanctions
list, and 312 individuals and entities have been subjected to sanctions. U.S.
Treasury reports indicate that over 1,600 terrorist-related accounts and
transactions have been blocked around the world, and more
than 170 countries
and jurisdictions have issued freezing orders consistent with applicable UN
Security Council Resolutions on US$ 150 million in assets.
An additional tool is the development of internationally-recognized rules for
scrutinizing cross-border money flows. This is a key tool to empower
investigators to identify and follow the money trail, and to force terrorists to
alter their 'business as usual' and adopt new funding mechanisms that
are
possibly more visible or less secure. The multilateral Financial Action Task
Force (FATF) has developed 49 standards to combat money laundering and terrorist
financing, including provisions governing charities, cash smuggling, and money
service businesses, which were endorsed this year by the United Nations. The UN,
World Bank, and International Monetary Fund (IMF), as well as bilateral donors
including the United States, have pledged to provide or facilitate specialized
training to build capacity among bankers and officials to apply FATF's 49
standards. The tools exist. What is missing is the political will of governments
to wield these tools aggressively, effectively and efficiently.
Our governments must put the effort into fully implementing international best practices, training personnel and sharing intelligence, acting cooperatively and using the agreed international tools available. Then, the international community will move closer to preventing attacks before they happen by better depriving terrorists of the means to raise and move the money they need.