Posts Tagged ‘terrorist financing’

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Terror finance frontal assault: recommended news reading

September 7, 2014
  • The Turkish Islamic front charity behind the illegal Gaza flotilla has just inked a pact with Qatar. What could go wrong?  More>>
  • After Egypt shut down Sinai smuggling tunnels, Hamas became desperate for cash. So it launched its rocket war against Israel with a global shakedown in mind… more>>
  • How Arab Bank transferred millions of dollars from Middle East “charities” to Hamas’s “martyrs”… more>>
  • Poorly informed Pentagon spokesman is concerned about Qatar’s support for terrorism only “if the reports are true”…more>>
  • ISIS poses an economic threat to the U.S….more>>
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Campaign renewed to declassify Saudi Arabia’s financing of 9/11

September 2, 2014

The intelligence committees of the U.S. House and Senate released an 800-page report in 2002 entitled, “Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 11, 2001.” The inquiry identified failures by the U.S. intelligence community to connect dots of relevant information available to them before 9/11.

The original report was classified top secret; the declassified version includes some redactions of names and methods scattered throughout the report.

The report is divided into four main parts: 1) overall findings and conclusions, 2) a narrative about the 9/11 attacks, 3) special topics about the attacks, and 4) “Finding, Discussion and Narrative Regarding Certain Sensitive National Security Matters.” It is Part Four that was redacted for the declassified version—that section constitutes the now infamous “28 pages” which has never been revealed to the public (corresponding to pages 416 to 443 in the original, top secret report; pages 396 to 422 in the declassified print version; and pages 428 to 454 in the PDF versions available online).

The first page of Part Four is un-redacted, and states, “Through its investigation, the Joint Inquiry developed information suggesting specific sources of foreign support for some of the September 11 hijackers while they were in the United States.”

In 2003, the New York Times reported that people who read the 28-page section of the top secret version said it indicated that two probable Saudi spies had links with 9/11 hijackers Khalid al-Mihdhar and Nawaf al-Hazmi. One of the likely spies, Omar al-Bayoumi, may have received money as a “ghost employee” of a Saudi civil aviation contractor from an unnamed Saudi official to disperse to al-Mihdhar and al-Hazmi in San Diego in 2000.

Providing further details, KPBS San Diego’s investigative reporter Amita Sharma reported on the 10-year anniversary of 9/11 that, “Before al-Bayoumi helped the hijackers, he received $465 per month from the Saudi contractor. After he helped them, he received $3,700 a month. I spoke with [former] Florida senator Bob Graham who co-chaired the congressional inquiry into 9/11, and here’s what he thought about the jump in pay to al-Bayoumi:  ‘The interpretation that we gave to it was that Bayoumi was a conduit of financing for the two hijackers while they were in San Diego.'”

Characterizing the 28 pages publicly, Graham later said, “that was the chapter that largely dealt with the financing of 9/11. Who paid for these very complex and in many instances expensive activities that were the predicate for 9/11?”

The formatting of the published report, which uses strike-throughs in place of the original classified text, indicates that Part Four includes bullet point findings, narrative paragraphs, and block quotes from FBI and CIA reports and testimony before the joint committee.

The final paragraph of Part Four is also un-redacted. There we learn that FBI director Robert Mueller testified before the joint committee that findings about foreign support for the hijackers while in the U.S. “would not have come to light had the [Congress’s] staff not probed” into the subject.

In 2003, 46 senators (including Democrats Chuck Schumer, Harry Reid, John Kerry, Hillary Clinton, and Republican Sam Brownback) supported declassification of the 28 pages in a letter to Pres. Bush. The Philadelphia Inquirer reports that Pres. Obama told 9/11 victims’ families in 2009 and 2011 that he would declassify the section. Currently, 10 members of Congress (seven Republicans and three Democrats) are co-sponsoring House Resolution 428, which would call upon the President to declassify the redacted pages.

A renewed effort is being supported by former presidential candidate and congressman Ron Paul (hat tip @TheNewSpy) to pass HR 428. The website 28pages.org is pushing a social media campaign to declassify the details about Saudi Arabia’s role in the 9/11 attacks. The conservative website Redstate.com and the editorial board of the liberal Miami Herald have also recently endorsed declassification.

Money Jihad predicted in January that declassification could take place this year.

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Mayor urges joint venture between investors and armed Marxist guerrillas

August 30, 2014

Rodrigo Duterte, mayor of the third largest city in the Philippines, is urging the Communist rebels to lease or sell 50,000 to 100,000 hectares of land to a group of Malaysian and Thai investors to use for a palm oil plantation.

According to the Philippine military, Marxist violence in that country led to the deaths of 3,000 people between 2001 and 2009. Yet Mayor Duterte thinks that local rebels in his city can be happily bought off with rents paid by foreign investors.

This is the same mayor who let it slip that he himself has paid revolutionary taxes to these insurgents (a common terrorist financing tactic), and he encouraged corporations to do the same. Just what kind of investors are these who would be willing to make such deals? One suspects that corruption between Duterte and this unnamed group of investors is afoot; backscratching is going. The only good news is that the Communist terrorists themselves don’t seem too interested Duterte’s corrupt deal.

It should be noted that the tendency of businessmen to cave into the demands of terrorists and pay them money is how ISIS rebuilt its capital before beginning to sweep down the Iraqi countryside.

From Davao Today in June:

Duterte urges rebels to engage in palm oil “joint venture” with Malaysian, Thai company

By JOHN RIZLE L. SALIGUMBA

June 13 2014

DAVAO CITY — Mayor Rodrigo Duterte urged New People’s Army guerillas to “bury your guns, or hang it on a tree” and engage into a joint business venture with a Malaysian and Thai entity that is looking for a 100,000-hectare area to plant oil palm and sesame seeds plantation.

With Paquibato District a known “stronghold” of the NPA in northern Davao City, Duterte said a plantation in their mid would be solely offered to the guerrillas to grab the opportunity.

Wa ko mangayo nga ang NPA isurrender ilang armas, tagoan lang nila unya akoy mopagador, sabot mo kung pila ilang pangayuon sa yuta. Kay ilang paliton ang palm oil unya naay trabaho. (I do not ask the NPA to surrender their arms; they just have to hide it. You [NPA] should talk [to investors] how much [rent] you want for the land. They [investors] will buy it and provide jobs),” he said.

Duterte said if the NPA agreed, he guarantees to talk with President Benigno Simeon Aquino III and the Armed Forces of the Philippines about “closing” Paquibato.

“Inyo na, kamo diri ug mga NPA,” said Duterte during the 116th Philippine Independence Day commemoration program he attended in Barangay Paquibato Proper, Paquibato District here.

Duterte was talking about his proposal several times since May this year but it was only lately that he gave the nationalities of the supposed investors. The size of the supposed plantation range from 50,000 to 100,000 hectares, which are figures given by Duterte himself in interviews with the media.

The NPA has not issued any statement yet on Duterte’s offer but the guerrillas have spoken against oil palm plantations in several statements.

The Communist Party of the Philippines refers to the NPA as “‘the tax enforcement agency of the people’s revolutionary government’ as it collects ‘revolutionary taxes’—especially from foreign-owned enterprises—in the regions where it operates.”

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Bangladesh probes terror-linked sharia bank

August 26, 2014

The government of Bangladesh is reviewing a report from Islami Bank Bangladesh, Ltd. (IBBL) on its expenditures. Authorities will review whether IBBL has accurately disclosed the organizations to which it contributes money, and perhaps whether the bank maintains any accounts for individuals listed on international blacklists.

IBBL has previously been documented to have diverted profits to militant Islamist groups as a form of corporate zakat. The bank was also cited by the U.S. Senate as one of the financial institutions with which the British bank HSBC should not have been doing business with due to terror finance concerns.

Thanks to readers Talha, Ranel, Ononto, and MFS for sending in the news. This account comes from Bangladesh 24:

Govt is investigating Islami Bank’s spending

The government is looking into where the Islami Bank spends its profit, State Minister for Home Asaduzzaman Khan Kamal has said.

“Islami Bank already gave a report on how its profits are spent. The intelligence people have been instructed to look into whether there are any discrepancies in it,” said the minister.

He was speaking to reporters after emerging from a meeting of the ministry’s Antiterrorism Committee on Thursday.

Kamal said the government was monitoring a few other financial institutions, operated by the bank, accused of terrorist-financing.

“The key to terrorism is funds. If that can be traced then wiping out terrorism will be easier,” said the minister.

Islami Bank has been under international pressure in the last few years after a US Senate Committee report accused it of terrorist financing.

Banks like HSBC, Citi Bank NA and Bank of America have suspended transaction with it since then.

According to Bangladesh Bank officials, the bank maintained accounts of people, who were on the UN’s suspicious people’s list.

Islami Bank authorities did not disclose information of those accounts to the central bank…

The bank, widely believed to be supported by the Jamaat-e-Islami, has come under fire from pro-liberation forces for their alleged funding of Islamist groups.

The party itself is facing investigation of the International Crimes Tribunal for the crimes against humanity committed during the War of Independence.

The Board of Directors of the bank is always dominated by people linked to Jamaat-e-Islami.

According to claims of Islami Oikya Jote leaders, the incumbent Chairman Abu Naser Mohammad Abduz Zaher was a leader of Al-Badr, a vigilante group of Bengalis raised by Pakistani occupation army, in Chittagong.

Islami Bank’s former Vice-Chairman Mir Quasem Ali is a member of Jamaat central committee and now facing trial for alleged war crimes perpetrated during the 1971 Liberation War.

He is also the member (administration) of Islami Bank Foundation and a member of Ibn Sina Board of Trustee, an associate organisation of the bank.

Islami Bank’s former Chairman Shah Abdul Hannan is known to be closely linked to the party, which had opposed the nation’s independence from Pakistan in 1971.

Its Deputy Managing Director Syed Abdullah Md Saleh is the sibling of former Jamaat MP from Chouddagram, Syed Abdullah M Taher.

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Financial war on terror: recommended reading

August 21, 2014
  • Time for a good old-fashioned asset freeze, arms embargo, and international travel ban against 6 ISIS terrorists… more>>
  • The beltway chatter is that the U.S. can’t do much to stop the financing of ISIS because it makes millions locally, which is harder to interdict that international funds transfers. Newsmax disagrees… more>>
  • ISIS may be behind high-profile cyber-hacks against Tony Blair, P-Diddy, and banks in order to finance their terror in Iraq… more>>
  • A British mosque will host a fundraiser with a speaker from the radical Hizb ut-Tahrirmore>>
  • U.S. taxpayer dollars fund UNRWA, a UN agency in the Palestinian territories staffed by a Hamas-run labor union whose members’ salaries are siphoned by Hamas as union dues… more>>
  • The German daily Süddeutsche Zeitung reports that the main civilian airport is Iran has been transformed into a “hub of terror” for arms shipments by the IRGC to Hezbollah… more>>
  • The feds will force 21,550 banks to mine more data on 8 million accounts a year. The American Bankers Association asks, “Once you have that information, what do you do with it?” more>>
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Claim: al-Shabaab financiers tend to come from one clan

August 19, 2014

Money Jihad cannot confirm the accuracy of a recent claim that financiers of the al-Shabaab terrorist organization tend to come from the Hawiye—the dominant clan in Mogadishu.

A Somali news site says it investigated al-Shabaab’s funding for six months and identified 10 entrepreneurs from various Hawiye sub-clans working in Somalia, Kenya, and Dubai who allegedly fund al-Shabaab. Money from the businessmen is said to be routed through Sheikh Yusuf Sheikh Issa, a.k.a. “Kabkutukade,” but separate media accounts appear to contradict that statement by reporting that Kabkutukade was jailed a year ago.

There is some corroboration that one of the men named in the article, referred to as “Muse Mohammed Ganjab,” does indeed have militant connections. The Times recently reported that “Musa Haji Mohamed Ganjab,” an adviser to Somali president Hassan Sheikh Mohamud, sent an arms shipment to al-Shabaab weeks after the terror siege of the Westgate mall in Nairobi, Kenya, and that he personally delayed an attack against an al-Shabaab base in Barawe.

There is also some indication of Hawiye roots and connections to al-Shabaab: the Jamestown Foundation says that the Islamic Union of Courts and its al-Shabaab offshoot were initially criticized as a Hawiye clan militia, the website Terror Free Somalia has previously noted that al-Shabaab’s sanctioned leaders are “mostly Hawiye,” and the Somalia Report says that al-Shabaab used to be referred to as a Hawiye clan based group. But it is also possible that some claims originate from rival clans, and al-Shabaab has members and supporters from non-Hawiye clans as well.

Nevertheless, the tribal connections are mostly immaterial, since al-Shabaab is, at its core, a jihadist group aligned primarily around its belief in fundamentalist Islam, and not along clan lineage.

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Money and the Islamic State of Iraq and Syria

August 11, 2014

In 2007, the Islamic State of Iraq was seen as “the richest of the insurgency groups” in Iraq with $1 billion to 1.5 billion “collected in revenue by the group through foreign donations, enforced taxation and confiscation of the property and funds of Iraqis.” But the U.S. surge and ISI missteps significantly damaged the jihadist group’s ability to raise funds.

Seven years and three names later, ISIS amassed a $2 billion comeback and took control of large swathes of territory in northern Iraq including Mosul and 35 percent of Syria.

ISIS’s financial recovery has been marked by a slight shift away from reliance on local extortion networks (although those are still in effect), improved organizational and financial management by ISIS leader and self-proclaimed caliph Abu Bakr al-Baghdadi, and the departure of U.S. troops in 2011.

The most important elements of ISIS’s funding are sadaqa (voluntary donations) from Arab donors in the Gulf; sales and tolls collected on sales of oil from fields under its control; and increasingly through money made by controlling key infrastructure.

Here’s a rundown of ISIS’s main funding channels:

Sadaqa from private donors

Fundraising is aided by contemporary marketing methods

Oil

  • ISIS controls 60 percent of Syrian oil including the lucrative Omar field
  • In Iraq, ISIS controls Butmah and Ain Zalah oil fields, the refinery in Baiji, and oil and gas resources in Ajeel in northern Iraq
  • ISIS sells or collects a portion on black market sales to Turkey, Iran, and in Syria itself
  • Revenue estimates for ISIS range from $1 million to $3 million daily

Dams

  • In addition to oil, control of key infrastructure such as the dams in Mosul, Fallujah, and Tabqa present increasingly significant revenue potential for ISIS.
  • Professor Ariel Ahram notes this is already occurring at Tabqa, where ISIS is involved in selling electricity.
  • New York Times reporter Tim Arango says that possession of the Mosul dam can enable ISIS to “use it as a method of finance” through extortion schemes to continue their operations.

Other sources

  • Isis has seized arms from Iraqi depots, including U.S. weapons given to Iraqi forces, plus weapons smuggled from Turkey and Croatia
  • The collection of ransom money has sustained ISIS throughout its existence
  • Antiquities smuggling

Incidently, little is being done by the Gulf states to curtail the flow of donations to ISIS because they either want an independent Sunni state carved out of Iraq or to replace Iraq’s Shia-led government with Sunnis. Washington should designate Saudi Arabia and Qatar as state sponsors of terrorism, but it won’t because of diplomatic considerations.

Without interdicting the donations and the contraband oil, U.S. airstrikes will have limited effect on ISIS’s coffers.

This piece is also published at Terror Finance Blog.

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