Editorials
DISRUPTING TERRORISTS' SUPPORT - AN OUNCE OF PREVENTION
By E. Anthony Wayne, Assistant Secretary for Economic and Business Affairs, U.S. Department of State
"Sabah" newspaper
December 26, 2005
As they did in Istanbul in 2003, terrorists have struck without warning this year in Kusadasi and other cities in Turkey, in Amman, London, Sharm el-Sheikh, and Bali, as well as in Iraq, Israel and Uzbekistan. They have slaughtered 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, including Turkey, 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. In addition to the UN sanctions for al-Qaida and Taliban-linked groups and individuals, national designation authorities can be used to freeze the assets of other terrorist groups, such as the PKK.
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.
Turkey and the US are working together to combat international terror, including al-Qaida and the PKK, and to shut down the front groups that support this terror. We and other countries 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.