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5-760: Testimony of David D. Aufhauser before the the Committee on Banking, Housin... Page 1 of 7

P R E S S R O O M

FROM THE OFFICE OF PUBLIC AFFAIRSSeptember 25, 2003JS-760

Written Testimony ofDavid D. Aufhauser, General Counselbefore thethe Committee on Banking, Housing and Urban AffairsUnited States SenateSeptember 25, 2003Chairman Shelby, Senator Sarbanes, and distinguished members of thisCommittee, thank you for inviting me to testify today about the United StatesGovernment's efforts generally, and the efforts of the Department of the Treasury inparticular, to address the financing of terror.Shortly after the September 11th attacks, President Bush gave those of us whowork on these issues very clear orders. He told us to starve the terrorists offunding. Since that mandate over two years ago, the United States has waged a"war" against global terrorism. We at Treasury are principally involved in thefinancial front of that "war." But this "war" is profoundly uncommon. There is noknown sovereign; no uniformed army; no hill to take; no target that is seemingly outof bounds. Indeed, terrorists obscenely place a premium upon the death ofinnocents. It is shadow warfare, and a key source of the stealth and mobilitynecessary to wage the war is money.Money is the fuel for the enterprise of terror. It may also be its Achilles' heel. It canleave a signature, an audit trail, which, once discovered, might well prove the bestsingle means of identification and capture of terrorists and pinpointing their donors.Financial records are literally the diaries of terror. Stopping the flow of money toterrorists may be one of the very best ways we have of stopping terror altogether.That is a dramatic statement, but it is not possible to overstate the importance ofthe campaign against terrorist financing. If you follow and stop the money, youhave gone a long way to diminish the killing and destruction.That being said, it is unwise to understate the difficulty of this endeavor. Oureconomy is deliberately open and porous. The ways to game restrictions on theflow of capital within the banking system are nearly infinite, and the endeavorbecomes more difficult when money is moved outside the banking system.Moreover, the challenge is worldwide in scope. The overwhelming bulk of theassets we seek to freeze; the cash flow that we hope to strangle; and the recordsthat we aspire to exploit are beyond the oceans that surround us. To act alonewould justly invite critique.

In the United States, the program to wage the financial front of the war includes:(i) an Executive Order using the powers granted by the Congress through theInternational Emergency Economic Powers Ac t that raises the standards of conductand due diligence of financial intermediaries, and explicitly targets underwriters ofterror for the freezing of their assets;(ii) UN Security Council resolutions and conventions that internationalize assetfreezes and mandate the criminalization of terrorist financing;(iii) more scrutiny at the gateway to U.S. financial markets that has been providedunder the USA PATRIOT Act;(iv) law enforcement criminal investigations and foreign intelligence operationsaimed at terrorist supporters and terrorist financiers;(v) extensive diplomatic efforts, including the engagement of central bankers and

http://www.treas.gov/press/releases/js760.htm 9/25/03


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LEXIS-NEXIS View Printable Page Page 1 of 1

LexisNexisThe Associated Press

The materials in the AP file were com piled by The Associated Press. These materials may not berepublished w ithout the express w ritten consent o f The Associated Press.February 19, 1994, Saturday, AM cycle

SECTION: International NewsLENGTH: 177 wordsHEADLINE: Saudi Family Disassociates Itself From Terrorist' MemberDATELINE: RIY AD H, Saudi ArabiaBODY:The Bin Laden family, one of the richest no n-royal families in Saudi Arabia, issued a statementSaturday to disassociate itself from a member w ho has been widely linked to Islamic terrorist groups.In a faxed message to Saudi newspapers, Bakr Mohammed Bin Laden, leader o f the Jiddah-basedfamily, expressed the family's "regret, denunciation and condem nation of all acts that Osama Bin Ladenmay have comm itted, w hich we do not condone and which we reject."Osama Bin Laden, Bakr Mohammed Bin Laden's brother, is believed to be a prominent leader of theso-called Afghan Arabs - Arab M uslims who helped help the Muslim rebels of Afghanistan in thatcountry's civil war in the 1980s.The Afghan Arabs later returned to their homes to foster fundame ntalist Islam, at times resorting toviolence.Osama Bin Laden has been mentioned in connection with a group tried in Yemen on charges ofcomm itting several acts o f terrorism. They are said to be linked to bomb attacks on two ho tels in Adenin December 1992 in which two Austrian tourists were killed.LOAD-DATE: February 19, 1994

https://www.nexis.com/research/search/submitViewTagged 9/22/03


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Search - 318 Results - al haramain Page 1 of 15

Source: News & Business> News > News Group File, Most Recent TwoYears Terms: alharamain (Edit Search)-^Select for FOCUS orDelivery[J

Federal News Service June 12, 2003 ThursdayCopyright 2003 Federal News Service, Inc.Federal News Service

June 12, 2003 ThursdaySECTION: STATE DEPARTMENT BRIEFINGLENGTH: 7589 wordsHEADLINE: NEWS CONFERENCE WITH ADEL AL-JUBEIR, ADVISER TO THE SAUDI CROWNPRINCESUBJECTS: RIYADH BOMBINGS ON MAY 12, WAR ON TERRORISM, OVERSIGHT OFCHARITIES AN D BANKINGSYSTEMLOCATION: EMBASSY OF SAUDI ARABIA, WASHINGTON, D.C.BODY:MR. AL-JUBEIR: Good morning, everyone. I want to thank all of you for coming to ourembassy this morning.I wanted to give you an update on where we stand in terms of the Riyadh bombings and thewar on terrorism, as well as lay out for you some of the rules and regulations and laws thatwe have implemented in Saudi Arabia with regard to oversight and control of our charities aswell as our banking system and money-laundering laws and things of that nature. And thenI'd be happy to take some questions.It has been now a month since the horrific attacks in Riyadh on May 12th. The attacksresulted in the killing of innocent people who were trying to lead normal lives. They weremurdered in the darkness of the night as they were in their homes with their children andtheir families and their friends.The attacks, for Saudi Arabia, represented a major jolt, and it brought out a determination bySaudis to ensure that we can do everything possible to prevent such murders fromhappening in our country again. They have galvanized us. They have mobilized us. They havetaken the rug out from under the terrorists or anyone who may have sympathy for them.Wevowed that we will go after the terrorists and bring them to justice. We will go after thosewho support them. We will go after those who use religion to justify such behavior, which isalien to any faith, in particular our Islamic faith. And we began to take a series of steps.W e have questioned scores of people. We have sought help from a number of countries,including the United States. We have now detained over 25 people in connection with thisbombing. We have looked more intensely in terms of our what is being said in ourmngqups and trip^ fo curb incitement. We have over the last few months dismissed severalhundred imams for straying out of the bounds of religion and for engaging in political activityat the mosques. We have referred over a thousand imams to educational programs in orderto educate them about their roles and what is permissible, what's not permissible, so that the-- wj_caneliminatejextremism, intolerance and radicalism from our mosques. /

http://www.lexis.com/research/retrieve?_m=69323f8a8al7f2a9bdOc27316cb41OO&docnum... 7/14/03


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tin-Al-Yaqeen - November 29, 2002 - Article 7 Page 1 of 11

November 29, 2002

A I N - A L - Y A q e C N

AT THE ANNUAL CEREMONY OF AL BIRSOCIETY AND ITS BRANCHES IN RIYADH:PRINCE SALMAN IBN ABDUL AZIZ : IN EACHQUARTER OF THE CITY THERE IS A BRANCHOF THE SOCIETY THAT PROV IDES HELP TOTHE NEEDY UNDER THE PATRONIZATION OFTHE CUSTODIAN OF THE TWO HOLYMOSQUES, HIS ENTRUSTED CROWN PRINCE,THE SECOND DEPUTY PRIME MINISTER ANDTHE STATE.THE GOVERNOR OF MAKKAH ALMUKKARAMAH: THE KINGDOM ALW AYSSERVES ISLAM AND IS HONOURED TO SERVE MUSLIMS AROUND THEWORLD.PRINCE M OHAM MED IBN FAHD: THE WORK OF THE CHARITIESPROVIDES AN ANSWER TO ALL CAMPAIGN AGAINST THE KINGDOM.PRINCE SULTAN IBN SALMAN: THE APPROVAL OF A LIST OF SITES INEIGHT AREAS TO BE DEVELOPED FOR TOURISM PURPOSES.

Prince Salman Ibn Abdul Aziz, Governor of Riyadh region and Chairman of Al BirCharitable society and its branches in Riyadh patronized the society's annualceremony at Prince Salman social center in Riyadh.Prince Salman was received at the venue by the Minister of Employment andSocial Affairs Dr Ali Ibn Ibrahim Al Namla, the Secretary General of Al Bir SocietyHamad Ibn Mohammed Suaidan, the Director General of Prince Salman socialcenter Rashad Ibn Said Haroon and a number of official from Al Bir Society.Upon his arrival Prince Salman toured the exhibition held on the occasion and theceremony started with readings from the Holy Quran.Then Dr Abdul Rahman Ibn Hamad Al Humeidi delivered a speech on behalf of theSecretary General of the Society in which he welcomed Prince Salman and praisedthe countries leaders and philanthropists for their charitable work.He praised the support and care provided to Al Bir societies from the leaders of thecountry since the era of the King Abdul Aziz, God Bless his soul and until the era ofthe Custodian of the Two Holy Mosques King Fahd Ibn Abdul Aziz. He said Al Birsociety has concentrated its work in a series of charitable activities to serve thosein need through receiving donations from philanthropists and distributing them tothose in need.Dr Abdul Rahman Ibn Hamad Al Humeidi pointed to the needy sectors of people

http://www.ain-al-yaqeen.com/issues/20021129/feat7en.htm 7/29/03


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Ain-Al-Yaqeen - July 25 , 2003 - Article 6 Pagel of 10

July 25, 2003

THWARTING A DESTRUCTIVE PLAN IN SAUDIARABIA, THE ARREST OF 16 TERRORISTS ANDTHE CONFISCATION OF 20 TONS OFEXPLOSIVES HIDDEN IN FARMSAND RESTHOUSES.PRINCE NAIF IBN ABDUL AZIZ: THEDETAINEES ARE MEMBERS OF AL QAEDA,THEY ARE NOT INCLUDED IN THE LIST OF THE19.THE MINISTER OF THE INTERIOR CALLS UPONTHE CITIZENS TO BE VIGILANTAND NOTPARTICIPATE WITHOUT KNOWING IN THEKILLING OF INNOCENT PEOPLE BY GIVING DONATIONS TO SUSPECTED

CHARITIES.Saudi Arabia vowed not to rest until it has "cleaned up" the Kingdom of anyremaining terror cells following the arrest of 16 suspected terrorists, thwartingattacks on key installations in the Kingdom. Interior Minister Prince Naif told AsharqAI-Awsat, the 16 detained men were "certainly" members of AI-Qaeda."We will not stop until we are absolutely certain that the country has been cleanedof these people," Prince Naif Ibn Abdul Aziz vowed, adding that it was premature tocall a halt to the crackdown on suspected militants.A large cache of arms and ammunitions was found in hideouts in Riyadh, Qasimand the Eastern Province. The Minister of the Interior said the weapons had beensmuggled into the Kingdom of Saudi Arabia, adding that further details would beprovided only after a full investigation was completed.The number of those arrested in relation to terrorism in the Kingdom of SaudiArabia increased to 240 people, said the Interior Minister Prince Naif Ibn AbdulAziz in press remarks.The 16-member terrorist cell declared arrested Monday, he said, was planningsimultaneous attacks on sensitive targets inseveral Saudi areas to inflict severedamage.Prince Naif denied that this latest arrest came through cooperation with foreignparties.The Interior Minister Prince Naif Ibn Abdul Aziz stressed all the information that ledto the arrests in Riyadh, Qasim and the Eastern region was the result of vigilantsecurity personnel effort adding no one was injured in the arrest.

http://www.ain-al-yaqeen.com/issues/20030725/feat6en.htm 7/29/03


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3 of 100 DOCUMENTSCopyright 2001 The Financial Times Limited

Financial Times (London)June 1, 2001, Friday London Edition 1

SECTION: INTERNATIONAL ECONOMY; Pg. 12LENGTH: 730 wordsHEADLINE: US may ease stance over money laundering: Coalition is pushing regarding reporting of big cashdeposits, report Edward Alden and Michael PeelBYLINE: By EDWARD ALDEN and MICHAEL PEELBODY:

The US government has, over the past decade, been at the forefront of an international campaign to discouragemoney laundering by cracking down on countries seen as havens for financial secrecy.

But scarcely four months into office, the Bush administration is reconsidering the virtues and vices of financialprivacy. Th e result could have the effect of sharply weakening US support for the international initiative.Th e Treasury department is understood to have launched a review of domestic anti-money laundering laws. Currentrules, intended to deter laundering through banks, require them to report anycash deposits over Dollars 10,000, and flagany unusual pattern of transactions in reports filed to the government.Dina Ellis, who was previously a senior lawyer on the Senate banking committee under Phil Gramm, a Texas

Republican wh o staunchly opposes tougher financial regulations, is heading the Treasury review.Paul O'Neill, Treasury secretary, said earlier this month that the Dollars 10,000 threshold for reporting "imposes asignificant cost on society".Mr O'Neill also questioned whether the roughly Dollars 700m the government spends annually to fight moneylaundering is well spent. The pressure on the administration is coming from a loose coalition that has brought togethersmall bankers, privacy advocates and libertarians.Th e same coalition last year helped to quash legislation that would have expanded "know your customer" rules andforced banks to identify all their clients and beneficial owners of assets.Pressure from similar groups caused the administration last month to weaken its support for an Organisation forEconomic Co-operation and Development (OECD) plan to crack down on tax haven secrecy.The OECD set up the Financial Action Task Force (FATF) in 1989 to spearhead a global fight against money

laundering. A key FATF requirement is that institutions put in place rules similar to the "know your customer"provisions that were blocked in the US.Th e FATF last year produced a blacklist of 15 countries that it said had proved insufficiently co-operative indiscouraging moneylaundering.Th e group is set to meet next month to review the list and decide whether to impose sanctions against previouslyblacklisted countries that have failed to reform their laws.But US support remains critical.


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Search - 100 Results - "richard small" citibank "terror finance" Page 1 of 5

Source: News & Business > News > Major Newspapers Terms: "richard small" citibank "terror finance" (Edit Search)r Select for FOCUS or Deliveryr

Financial Times (London) October 18, 2002, FridayCopyright 2002 The Financial Times Limited

Financial Times (London)October 18, 2002, Friday London Edition 1

SECTION: CO MME NT & ANALYSIS; Pg. 19LENGTH: 2484 wordsHEADLINE: The money trail: how a crackdown on suspect charities is failing to stem theflow of funds to a l -Qaeda: TERROR FINANCE: US-led efforts to shut down organisationsthat channel money to terrorists are frustratingly incomplete. But poor international co-operation is only partly to blame, writes Edward Alden:BYLINE: By EDWARD ALDENBODY:Last March, just days after a visit by Paul O'Neill, US Treasury secretary, Saudi Arabiablocked the funds of the Somalia and Bosnia branches of a l -H a r a ma in Islamic Foundation.T he Riyadh-headquartered group, authorities alleged, was "diverting charitable funds" toterrorist groups linked to al-Qaeda.It was the first time since the terrorist attacks of September 11 last year that Saudi Arabiahad moved against one of the charities thought to be the biggest source of funding for al-Qaeda. The crackdown, the two governments declared, would "open a new phase ininternational co-operation to destroy the terrorist financing network".Last month, however, Saudi newspapers reported that the al-Haramain Islamic Foundationw as expanding its operations in both Bosnia and Somalia, and had opened a Dollars 530,000Islamic centre in Sarajevo. US officials are aware of the developments and are investigating.The failure to curb al-Haramain - to date the only charity targeted jointly by the US andSa ud i Arabia - is the latest sign that Mr O'Neil l 's pledge to shut down "the quartermasters ofterror" is foundering.The executive order issued by George W. Bush after September 11, calling for a worldwidec r a c kdown on funding for terrorist groups, remains a key element of the US war onterrorism. But according to a study by the Council on Foreign Relations, released yesterday, alack of co-operation by Saudi Arabia and some other US allies resulted in little disruption tothe web of charities, businesses and other fund-raising ventures that provide al-Qaeda withhuge sums of money.Others have reached similar conclusions. Canadian intelligence agencies estimated in a July25 report, obtained by the National Post newspaper, that Saudi-based charities alone arefunnelling between Dollars 1m and Dollars 2m a month to al-Qaeda. Last month the UnitedNations warned that al-Qaeda continues to have access to between Dollars 30m and Dollars300m in funds controlled by otherwise legitimate businesses and charities. While aboutDol lars 112m in funds linked to al-Qaeda and the Taliban has been frozen, that figurerepresents only "a small fraction of the funds and resources" available to those groups, the

https://www.lexis.com/research/retrieve?_m=ff27ceee4c8094277f893c84e7ee3426&docnum... 8/11/03


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Search - 100 Results - "richard small" citibank "terror finance" Page 1 of 2

Source: News & Business> News > Major Newspapers(i)Terms: "richard small" citibank "terror finance" (Edit Search)^Select for FOCUS or DeliveryF

Financial Times (London) December 4, 2002, WednesdayCopyright 2002 The Financial Times Limited

Financial Times (London)December 4, 2002, Wednesday USAEdition 1

SECTION: THE AMERICAS; Pg, 3LENGTH: 406 wordsHEADLINE: Saudis fail to dispel terror finance tension WASHINGTONCONCERNS:BYLINE: By EDWARD ALDENDATELINE: WASHINGTONBODY:Saudi Arabia said yesterday it would not lower its standard of evidence for designatingfinancial supporters of terrorism, setting the stage for continued conflict with the US over theadequacy of Saudi measures to crack down on terrorist financing.But Adel al-Jubeir, foreign policy adviser to Crown Prince Abdullah, the Saudi leader, said hedid not believe the US would act unilaterally against Saudi individuals or groups suspected ofsupporting terrorism. "When it comes to designations of either individuals or organisations . .. we work together," he said.The statements in Washington yesterday came as part of the first concerted effort by SaudiArabia to quell mounting US criticisms that it has not done enough to crack down on Saudicharities or individuals that the US suspects of funnelling money to terrorists.The administration of US President George W. Bush is debating whether to step up pressureon the Saudis by threatening unilateral action, designating and freezing bank accounts ofsome Saudis suspected of financing terrorism. Since last March, the two governments haveagreed that all such actions would be undertaken jointly.A n inter-agency group of the administration's top officials dealing with terrorist financing isset to recommend to Mr Bush that the US act alone if the Saudis fail to co-operate after theUS presents additional evidence regarding sus-pect individuals and groups.The US has been frustrated that Saudi Arabia and other allies, including the European Union,have insisted on criminal standards of proof before moving ahead with terrorist designations.Mr al-Jubeir said yesterday that Saudi Arabia would not budge on that issue, calling it amatter of "equity and justice". But he said the Saudi government was "working with the USon looking at a number of individuals" to see if there was sufficient evidence to take action.Jonathan Winer, a former State Department official who helped author a recent Council onForeign Relations study critical of the Saudis on terror financing, said yesterday's pressconference might signal a Saudi willingness to agree with the US on further desig-nations.

https://www.lexis.com/research/retrieve?_m=ff27ceee4c8094277f893c84e7ee3426&docnum... 8/11/03


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Page 1 of 4

TestimonyUnited States Senate Committee on the JudiciaryAn Assessment of the Tools Needed to Fight the Financing of TerrorismNovember 20 , 2002Mr. Salam AI-MarayatiExecutive Director, Muslim Public Affairs Council (MPAC)Thank you , M r. Chairman, Senator Hatch, and distinguished members of the SenateJudiciary Com mittee, for inviting me to appear before you today.My nam e is Salam Al-Marayati and I am the executive director of the Muslim Pu blicAffairs Co uncil (MPAC). I was invited to testify today on "An Assessment of ToolsNeeded to Fight th e Financing of Terrorism."I. The Muslim Public Affairs Council and it's Role in the Fight Against TerrorismBefore I delve into the particular issues of today 's topic , let me say a wo rd abo utMPAC, it 's mission, and its work. MPAC was founded in 1988 as a vehicle to increaseoutreach and dialogue efforts between th e Am erican Muslim com munity and otherAm ericans. MPAC's ma in purpose is to develop and prom ote a constituency ofAm erican c itizens im bue d with Islamic values of me rcy, com passion, just ice andfreedom. W e firmly believe that to be a good American is to be a good Mu slim. MPAChas articulated an authentic Islamic voice w ithin an indigenous Am erican tradition.Prior to the tragedy of September 11, 2001, MPAC had developed a track record onnational security issues. In 1989, we organized the first conference in the cou ntryaddressing Am erican international interests in the Muslim world, co nvening M uslimleaders from around the world in a discussion with U S diplom ats.MPAC has also beena leader in interfaith dialogue as a mean s of prom oting understanding andreconciliation, and as a model that can be emulated in areas of conflicts involvingreligion as a mo tivation for violence. To date, MPAC's M uslim-Jewish dialogue andMuslim-Christian dialogues have expanded from merely prom oting mutual respect toheightened levels of joi nt interfaith action in the service of peop le and com m unitie s.MPAC has held several forums in Washington , DC on such topics as: on America'sglobal image, on the con cept of an Islamic demo cracy, on Middle East peace andtrends in Islamic mo vements. Final ly, MPAC and law enforcem ent have issued join tstatements against terrorism and calling fo r coo peration between citizens and theauthorities.In 1999, MPAC was the first and only Am erican Muslim organization to publish acounterterrorism policy position paper, which included: an overview of Islam's standagainst terrorism ; an analysis of key trends in co m bating terrorism; a do cum entation ofAmerican Mu slim organizations' condem nations of terrorism dating back to the early

http://judiciary.senate.gov/print_testimony.cfm?id=519&wit_id=1422 4/30/2003


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National Review Online (http://www .nationalreview.com) Page 1 of 6

rldSfl119CK Send toaFriendFrom the Archives P r i n L V e r s i o n

November 26, 2002, 8:30 a.m.The End of an AllianceIt's time to tell the House of Saud goodbye.By Alex AlexievEDITOR'S NOTE: This appeared in the October 28, 2002, issue of National Review.

O ver the long run, the key to winning the war against Islamist terror is helping moderateswin the political struggle within Islam. The early stages of the war on terror show ed muchpromise in this respect. In a remarkably short time, using a quiet bu t effective carrot-and-stick approach, Washington was able to effect an about-face in Pakistan's policies,transforming it from an al-Qaeda sponsor to a cooperative ally. Similar changes were securedby similar m ethods in some other countries kno wn previously as havens for extremists, suchas Yemen, Somalia, and Sudan.Since then, however, the U.S. has failed to pursue a coherent political strategy aimed at de-legitimizing the ideology of Islamic terrorism and undermining the terrorists' sources ofsupport. And it is becoming increasingly clear that the reason for this failure is Washington'sunwillingness to risk a rupture with Saudi Arabia. But the Bush administration has to face upto the fact that Riyadh has been and remains the main ideological an d financial sponsorof Islamic extremism worldwide, and is not at all interested in helping us combat it. Until theadministration confronts this reality in a decisive manner, lasting progress in the war onterrorism is unlikely.Nothing better illustrates the Saudis' intransigence and the administration's timidity indealing with it than two cases of U.S.-Saudi "cooperation" that recently came to light. OnMarch 11, the Treasury Department announced with great fanfare that the U.S. an d SaudiArabia had jointly blocked the funds of the Bosnia and Somalia offices of the "private,charitable, an d educational" Al-Haramain Islamic Foundation because it was diverting fundsto terrorists. This action, according to Treasury, "opened a new phase in internationalcooperation to destroy terrorist financin g" and proved the "strength of the anti-terrorcoalition." In reality, Al-Haramain alongside the World M uslim League is the Saudis'largest Islamist front organization, controlled directly by the minister ot religious airairs~and incharge of spending huge amounts of (mostly government) money to promote the radical-'isiamist agenda worldwide, it nas ottices in over 50 countries and operates through Saudiembassies in another 40; as for its Bosnia an d Somalia operations, business even there iscontinuing as usual, despite additional evidence of terrorist ties unearthed by Bosnian police ina raid on June 3. Al-Haramain's director, Aqeel al-Aqeel, noted w ith satisfaction in earlySeptember that "America has tried to establish a link between terrorism ,ajjd Islamic charitablesocieties and failed" and went on to assert tha^Al-Haramain's donatjojis and activities bothhave intensified since 9/11. Indeed they have: Al-Haramain has opened three new offices since

The second case deals with Wael Hamza Julaidan. A Saudi citizen from a prominent family,

http://www.nationalreview.com/script/printpage.asp?ref=/flashback/flashback-alexievl 12602... 7/14/03


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16 of 55 DOCUMENTSThe Associated Press

The materials in the AP file were com piled by The Associated Press. These materials may not be republished withoutthe express written consent of The Associated Press.May 23, 2 002, Thursday, BC cycle

SECTION: International NewsLENGTH: 265 wordsHEADLINE: U.S. Treasury Department vehemently denied U.N. report saying bank flagged bank transfer to Sept. 11suicide hijackerDATELINE: UNITED NATIONSBODY:

Th e U.S. Treasury Department on Thursday vehemently denied a U.N. report that Mohamed Atta, one of theterrorists involved in the Sept. 11 attack on the World Trade Center, received a transfer of funds into his U.S. accountwhich was flagged by his bank.According to Wednesday's U.N . report, the bank filed a "suspicious transaction report" with the TreasuryDepartment's Financial Crimes Enforcem ent Network "which was not noticed quickly enoug h because the report w asjust one of a very large num ber and was not distinguishable from those related to o ther financial crimes."The Financial Crimes E nforcement Network said in a statement Thursday that it wanted "to unequivo cally deny

that any suspicious activity report was filed prior to the tragic events of Sept. 11, 2001 on terrorist M ohamed A tta."The U.N . report was prepared by an expert group, authorized by the Security C ouncil to monitor implem entation ofnew sanctions against Osama bin Laden, his al-Qaida terror network, and Afghanistan's former Taliban rulers.Michael C handler of Britain, chairman of the monitoring group, said Thursday he had no comm ent until hereturned to U.N. headquarters from Europe next week to analyze the information that went into the report.Atta, 33, an Egyptian, was the suicide pilot of one of the planes that hit the W orld Trade Center. He was describedby bin Laden as "in charge of the group" of Sept. 11 suicide hijackers.The U.N . report cited a transfer of $69,985 into Atta's U.S. acco unt as an example of the difficulties indifferentiating "laundered money."

LOAD-DATE: May 24, 2002


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- Dubai Banks Remain Focus Of Terror Funding Investigation Page 1 of 3

T H E W A L L STREET O U R N A L .O N L I fi January 17, 2004 7:47 p.m.EST

Dubai Banks Remain FocusOf Terror Funding InvestigationDOW JONES NEWSWIRES

D U BA I (AP)--Banks in this financial hub of the Arab world remain a key focus in the worldwideinvestigation of terror funding despite moves to tighten reporting rules, freeze accounts andcontrol informal money transfers, U.S. and Arab officials told The Associated Press.The reason: Dubai's history of shady transactions and the difficulty of tracking a matrix of legaland illegal free trade.About half the $250,000 spent on the Sept. 11 attacks was wired to al-Qaida terrorists in the U.S.from Dubai banks, said officials of the U.S. Treasury and Central Bank of the United ArabEmirates.Al-Qaida money in Dubai banks also has been linked to the 1998 U.S. Embassy bombings inKenya and Tanzania blamed on Osama bin Laden.In addition, before Saddam Hussein's ouster, this Persian Gulf emirate was a favorite transit pointfor smugglers sneaking past U.S.-led naval patrols enforcing U.N. trade sanctions. And it wasthrough Dubai that Russian arms dealers supplied bin Laden's Taliban backers in Afghanistanbefore the U.S.-led war ousted their Islamic government, officials say.

DOW JONES REPRINTS

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Sultan bin Nasser al-Suweidi, head of the Central Bank, told AP that financial officials areworking closely with the U.S. government to block terror funding. Central Bank officials havetrained with U.S. investigators and other international experts to help them identify moneylaunderers and suspicious transactions, he said."We don't want wrongdoers. We totally don't need them," said the U.S.-educated al-Suweidi, whoarrives at his office before 8 a.m. and is often seen working until 10 at night in the fortress-likeCentral Bank headquarters in the Emirates capital of Abu Dhabi.Banks in Dubai, which were not required to report incoming transfers of less than $55,000 beforethe Sept. 11 attacks, must now tell the Central Bank about any transfer of more $11,000, al-Suweidi said.

http://online.wsj .com/article_print/0,,BT_CO_20040117_000209,00.html 2/5/2004


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WSJ.com - Dubai Banks Rem ain Focus Of Terror Funding Investigation Page 1 of 3

ONLNE T J O U R N A L .January 17,2004 7:47 p.m. EST

Dubai Banks Remain Focus Of Terror Funding InvestigationDOW JONES NEWSWIRES

DUBAI (AP)--Banks in this financial hub of the A rab world remain a key focus in the wo rldwideinvestigation of terror funding despite m oves to tighten reporting rules, freeze accounts andcontrol informal m oney transfers, U.S . and Arab officials told The Associated Press.The reason: Dubai's history o f shady transactions and the difficulty of tracking a m atrix of legaland illegal free trade.About half the $250,000 spent on the Sept. 11 attacks was wired to al-Qaida terrorists in the U.S.from Dubai banks, said officials of the U.S. Treasury and Central Bank of the United ArabEmirates.Al-Qaida money in Dubai banks also has been linked to the 1998 U.S. Em bassy bom bings inKenya and Tanzania blamed on Osama bin Laden.In addition, before Saddam Hussein's ouster, this Persian Gulf emirate was a favorite transit pointfor smugglers sneaking past U .S.-led naval patrols enforcing U.N. trade sanctions. And it wasthrough Dubai that Ru ssian arms dealers supplied bin Laden's Taliban backers in A fghanistanbefore the U.S.-led war ousted their Islamic go vernment, officials say.DOW JONES REPRINTS

This copy is for your personal, n on-commercial use only. To order presentation-ready copies for distribution to yourcolleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit: www.djreprints.com. See asample reprint in PDF format Order a reprint of this article now.

Sultan bin Nasser al-Suweidi, head o f the Central Bank, told AP that financial officials areworking closely with the U.S. government to block terror funding. Central Bank officials havetrained with U .S. investigators and other international experts to he lp them identify moneylaunderers and suspicious transactions, he said."W e don't want wrongdoers. We totally don't need them," said the U .S.-educated al-Suweidi, whoarrives at his office before 8 a.m. and is often seen working until 10 at night in the fortress-likeCentral Bank headquarters in the Emirates capital of Abu Dhabi.Banks in Dubai, which w ere not required to report incoming transfers of less than $55,000 befo rethe Sept. 11 attacks, m ust now tell the Central Bank about any transfer of more $11,000, al-Suweidi said.

http://online.wsj .com/article_print/0,,BT_CO_20040117_000209,00.html 2/5/2004


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2) Federal Judge Refuses to Increase Charity Director's Prison TimeAssociated PressCHICAGO -- In a sharp blow to the government, a judge refused Thursday to add as much as adozen years to the sentence of an Islamic charity director linked to Osama bin Laden, saying hisracketeering offense wasn't a crime of terrorism.Enaam Arnaout, 41 years old, would have been sentenced to 20 years under federal guidelinescalling for tougher prison terms for those convicted of terrorism offenses.Judge Suzanne B. Conlon ruled, however, that the terrorism guideline doesn't apply in Mr.Arnaout's case.He wasn't convicted of a terrorism offense, she said, "Nor does the record reflect that heattempted, participated in, or conspired to commit any act of terrorism."For a simple racketeering conviction he could be sentenced to eight to 10 years in federal prison.Ms. Conlon has leeway to give him more or less at sentencing, scheduled for Aug. 18.Defense attorney Joseph Duffy said the decision "pretty much vindicates what the defense hasclaimed from the inception, and that is that neither he nor his charity had anything to do withterrorism."U.S. Attorney Patrick J. Fitzgerald issued a brief statement saying his office disagreed with Ms.Conlon's ruling.Mr. Arnaout headed Benevolence International Foundation, a charity in suburban Chicago thatfunneled millions of dollars in humanitarian aid to Muslim countries for a decade. The charity isnow all but defunct. ,',,r

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In his plea agreement, Mr. Arnaout admitted defrauding donors who thought the money went onlyto widows, orphans and the poor by sending some to Muslim military units in Bosnia andChechnya.He also admitted that Mr. bin Laden had befriended him in Pakistan in the 1980s. Mr. Arnaoutdenied that he has funneled money to the al Qaeda terrorism network and insisted he doesn'tsupport terrorism.Prosecutors said he has many links to al Qaeda and Mr. bin Laden. Among other things, theysaid the minutes of the founding meeting of al Qaeda were found on Mr. Arnaout's computer at aBenevolence office in Bosnia.Ms. Conlon said, however, that the law specifically lists crimes involving terrorism, ranging fromuse of biological weapons to attacking airports.She said racketeering wasn't among them."The government has not established that the Bosnian and Chechen recipients of BIF aid wereengaged in a federal act of terrorism," she said. She said boots, blankets, uniforms and othergoods donated to the Muslim fighters by the charity weren't shown to be for terrorist uses.Mr. Arnaout, a Syrian-born U.S. citizen, has been held without bond since his April 2002 arrest.

PRESS CLIPS FOR JULY 18, 2003


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T H E A T T O R N E Y G E N E R A L ' S G U I D E L IN E S O NG E N E R A L C R I M E S , R A C K E T E E R IN G E N T E R P R I S E A N DT E R R O R I S M E N T E R P R I S E I N V E S T I G A T I O N S


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A T T O R N E Y G E N E R A L ' S R E V I E W T E A MO N T HE H A N D L I N G O F T HELO S A L A M O S N A T I O N A L LA B O R A T O R Y I N V E ST I GA T I O N

OVERVIEW OFTABLEOF CONTENTS

V \ R ONE: (U ) INTRODUCTION, EXECUTIVE SUM MA RY, M ISSION

STATEMENT, METHODOLOGY, AND ACKNOWLEDGMENTS ......... 1CHAPTER TWO: Jg f THE 1982-1984 INVESTIGATION O F W E NHO LEE ................................................................. 23

CHAPTER FOUR (U) OVERVIEW OF THE FBI'S HANDLINGOF TOE WEN HO LEE INVESTIGATION ...................................... 55CHAPTER FIVE: j$ THE FBI'S CONDUCT O F THE PRELIMINARYINQUIRY O N W B N H O LEE: APRIL 19M to NOVEMBER 1995 ., .......... ....... 222CHA PTER SIX: (U) T HE PREDICATE .... ...... ; .......... ...... - ....... ...234C H API ERS EVEN: (U) THE DEPARTMENT O FENERGY'SADMINISTRATIVE mQUmY: SEPTEMBER 1995 TO M AY 1996 ....... ..........339CHAPTEREIGHTi (U) THEFBrSmVBSTIGATIONOFWBNHO LEB A N D SYLVIA LEE: M A Y 1996TO APRIL 1997..;.. ............. .......389CHAPTER NIN E: (U) THE SEARCH OF W EN HO LEE'S COMPUTERCHAPTER TEN: (U) TOBFBPSINVBSTiaATiONOFWBNHOLEB AND SYLVIA LBB: APRIL 1997 TO JUNE 1997

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36 Hours | Austin, Tex. Page 1 of 3

nytimeB.COm S P O N S O R E D w

March 28,2003

36 Hours |Austin, Tex.By RUTH PENNEBAKERT EXANS, especially sentimental University of Texas alumni, have long agonized over Austin'ssoul. Does Austin remain easygoing and eccentric in its setting of rugged hills, trees and lakes?Are its politics still liberal and is its music still rowdy? Is it still a refuge for slackers who don't w ant togrow up and move to Houston or Dallas? N ow , after the influence and affluence of a high-tech boom inthe 90's, the agonizers wear T-shirts pleading, "Keep Austin Weird." After all, Armadillo WorldHeadqu arters, the nightclub where cow boys and hippies gathered to create country rock, is buried underconcrete; chilly Barton Springs Pool, the spring-fed pond where swimmers compare goose bumps, hasbeen closed to test for toxins. But so what? Austin remains playful and offbeat, and Leslie Cochran,who won 8 percent of the m ayoral vote in 2000 after campaigning in drag, is running for mayor again.So listen to the m usic, stroll along the lakes, hang out in the beer gardens and let the city work itscurious magic and lazy charm . In 2023, you can tell everybody how wonderful Austin was 20 yearsago, when its soul was still intact.Friday6p.m.1) Look It OverFrom atop the 780-foot hill called M ount Bonnell, you can see both the old Austin H the University ofTexas tower, the Colorado River H and newer landm arks like the amber-colored curves of thePennybacker Bridge. To get there, drive west on 35th Street, turn right on Mount Bonnell Drive andpark near the 100-plus steps leading to the top. This gorgeous vista has moved some visitors from theWest to say that A ustin "belongs" in C alifornia. Please be advised that many A ustinites do not regardsuch com ments as flattering.8 p.m.2) Warmth of a G ood DinnerIn 1975, Jeffrey's (1204 West Lynn Street, 51 2-477-5584) began offering delicious dinners in a low-rent, funky section of West Austin. Almost three decades later, its chalkboard men us are gone and itsneighborhood is high rent, but the atmosphere is still casual and intimate, and its American cuisine isluscious. Try the crispy oysters ($11.75), the yellow-fin tuna ($25.75) and the ermine brVlme ($7.50). Ifyou are lucky, you will be served by John Guffey, who has w orked at the restaurant for more than 20years, waiting on presidents, governors, students, musicians and aging hippies. You r meal will beseasoned w ith witticisms about culture, politics, love and coronary bypasses. ("I'm alw ays interested tosee what the youth of A merica is piercing these days," he comm ented after Austin's most recent Southby Southwest Music Festival.)Saturday8 a.m.

http://www.nytimes.com/2003/03/28/travel/28HOUR.html?ei=5070&en=0749c7763c8eOd... 2/25/2004


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Subject: translation of document re: BIF

In the review of this file this item was removed because access to it isrestricted. Restrictions on records in the National Archives are stated ingeneral and specific record group restriction statements which are availablefo r examination.

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