Posts Tagged ‘front company’

h1

U.S. publicly names Saudi Hamas bankroller

September 14, 2015

Saudi high rollers have been funding jihad for decades.  U.S. officials usually only talk about it in generalities.  But the Treasury Department has recently announced sanctions against several Saudis including Abu-Ubaydah al-Agha, a high-ranking money man for the terrorist group Hamas, and Mahir Salah, who launders money for Hamas through front companies in Saudi Arabia.

From Agence France-Presse on Sept. 11 (h/t El Grillo):

US sanctions aim at Saudi-Hamas finance link

New US Treasury sanctions Thursday took aim at financial links between Saudi Arabia and the Palestinian Islamist movement Hamas, which the US labels a terrorist group.

The Treasury named Hamas political bureau member Saleh Aruri; Saudi-based Hamas financier Mahir Salah; Abu-Ubaydah Khayri Hafiz Al-Agha, a Saudi citizen and “senior Hamas financial officer”; and al-Agha’s company Asyaf International Holding Group for sanctions.

It said Aruri has since 2013 “overseen the distribution of Hamas finances” and works closely with Salah.

Salah, a dual British and Jordanian citizen, has led the Hamas Finance Committee in Saudi Arabia, which the Treasury called “the largest center of Hamas’s financial activity.”

“As of late 2014, Salah managed several front companies in Saudi Arabia that conducted money laundering activities for Hamas,” it added.

Al-Agha and his company, meanwhile, are “involved in investment, funding, and money transfers for Hamas in Saudi Arabia”…

h1

10 companies that make money from terror ties

July 15, 2014

Longtime Money Jihad readers already know that sharia banks are conduits for funding jihadist groups, but may not be aware of some of the other corporations and businesses that are in financial cahoots with terrorists.

  1. Tajco Ltd.—A Lebanese-based company that uses supermarkets to launder South American drug money through grocery stores in Gambia back to Lebanon for dispersal to Hezbollah. According to former Treasury official Stuart Levey, Tajco and its subsidiaries constitute a “multinational network [that] generates millions of dollars in funding and secures strategic geographical strongholds for Hizballah.”
  2. Dahabshiil—A money services business (technically a remittance company, not a bank) that pays a $500K stipend twice a year to al-Shabaab. Somali journalists and musicians have alleged that the payments aren’t just for “protection,” (ie, the freedom to operate in Somalia without being bombed) but that Dahabshiil shares tribal links and policy goals with the terrorist group.
  3. Al-Aqsa TV—The U.S. describes the media outlet as “a television station in Gaza financed and controlled by Hamas.” Hamas raised the initial capital to create Al-Aqsa TV, negotiated for a satellite provider, and allocates money for its budget. Its programming seeks to prepare children to join and fight for Hamas as they age.
  4. Crescent Foods—the “caterers of the Muslim Brotherhood.” Crescent Foods is routinely selected to provide food at conferences and functions held by a variety of North American Muslim Brotherhood front groups and affiliates including the radical American Muslims for Palestine and organizational co-conspirators of the Holy Land Foundation, a defunct Hamas front charity. Crescent Foods also markets halal foods to the constituencies of these Islamist groups.
  5. Sniper Africa—A South African hunting gear company which is majority owned by a dentist who raised $120,000 for Al Qaeda. OFAC has listed Sniper Africa under its specially designated global terrorist category.
  6. Zurmat Group—A company operating in Afghanistan that sells components that wind up in roadside bombs against our troops. Additionally, the Army Times found that “approximately $1-2 million per month — flow to [the Haqqani network] to finance its activities” from Zurmat Group profits. CENTCOM describes the company as actively supporting the insurgency.
  7. Darkazanli Export-Import Sonderposten—Owned and operated by Imam Mamoun Darkazanli, a longtime Al-Qaeda financier and manager. Darkazanli supports al Qaeda from Hamburg, Germany, and behaved as a type of godfather figure to the Muhammad Atta cell as it prepared for the 9/11 attacks. Darkazanli’s company has provided “cover, business collaboration and communications” for Al Qaeda figures visiting Germany.
  8. The Bank of China—The Chinese bank funded Hamas and Islamic Jihad when it “carried out dozens of wire transfers for the two terror organizations, totaling several million dollars,” from 2003 to 2007 according to a lawsuit by victims of terrorist attacks in Israel. The bank knowingly continued making such transfers even after being warned against it by the Israeli government in 2005.
  9. Jihad al-Bina—Hezbollah’s construction company in Lebanon. Its relationship with Hezbollah apparently transformed it from a $1.8 million business in the 1990s into a $450 million operation by 2006. It has been able to cash in on public contracts to rebuild Lebanese infrastructure through international development aid even though the firm is basically controlled by Hezbollah leaders and Iran.
  10. Al Manar/Lebanese Media Group—This Hezbollah news outlet serves as a “Beacon of Hatred” that runs advertisements encouraging donations to Hezbollah and airs commercials for Hezbollah. The television channel’s programming includes vitriolic anti-Semitic messages and glorification of suicide bombing operations.

In addition to the companies above, there are conventional Western corporations like Chiquita and Echo Bay that have have paid bribes or protection money to rebels or terrorists to prevent their employees and facilities from being attacked, and banks such as HSBC that have dropped the ball on anti-money laundering, sanctions compliance, and counter-terror finance programs. This is totally unacceptable behavior which ultimately helps finance terrorism and increases the odds that more corporations will be exploited by terrorists. At the same time, it should be recognized that these abysmal compliance programs resulted from a combination of mismanagement, lousy judgments, and long-term business motives, but not because of ideological alignment with the terrorists themselves.

A final note: there was an extremely popular article within the past year circulating the Internet about corporations making money off of the global war against terrorism (which itself was only the latest in a decade-long stream of Internet tirades and social media screeds against “war profiteering” in Afghanistan and Iraq). It should just be remembered that for every company allegedly making ungodly profits from providing basic security services that there are companies like those above that are actually funding or making money directly from terrorism. So when you run across articles like that, ask yourself a question: which seems worse to you—a greedy corporation that fights terrorism, or a greedy corporation that funds terrorism?

h1

Financial sleight of hand: suggested news reading

June 19, 2014
  • The Palestinian Authority’s stipends to convicted terrorists are beginning to worry countries that give foreign aid.  One P.A. official’s solution?  Have the PLO pay the stipends instead through a bookkeeping trick… more>>
  • The president of the Western Australia Islamic Council pleads not guilty in $8 million methamphetamine case… more>>
  • Two writers tried setting up shell companies 4,000 times as research for a book. They were only asked for photo identification 20 percent of the time… more>>
  • Despite the Dutch company Fokker’s voluntary disclosure of violating sanctions by shipping aircraft parts to Sudan and Iran, their scheme was sufficiently purposeful and egregious to warrant criminal prosecution… more>>

 

h1

Colombian city a hub for Hezbollah money

January 7, 2014

Lebanese families in Maicao, Colombia, are at the crossroads of a lucrative network of businesses, money launderers, and drug traffickers who send money back to Lebanon to finance Hezbollah, according to a special report from the Miami Herald.

Ali Yalili, a Shia Muslim in Maicao interviewed for the story, told the Herald that Shiites there are “unfairly targeted as financiers of terrorism.”  But evidence from the U.S. Treasury Department strongly demonstrates the important role that Lebanese businessmen and women in Maicao play in filling Hezbollah’s coffers.

Thanks to Sal for sending this over:

Hezbollah financing evolves beyond Colombia’s Muslim communities

By Abraham Mahshie

Special to the Miami Herald

MAICAO, Colombia — Samira Hajj Ahmad flew to Maicaofrom Beirut in 1982 for her honeymoon. She didn’t intend to stay for 31 years. Nor did she expect Hezbollah to follow her.

During her two days of flying to Colombia, war broke out in southern Lebanon, with some of the largest troop movements in her native Beqaa Valley. Israel had invaded southern Lebanon to root out a nascent Shiite extremist group known as Hezbollah that had been using the country as a base from which to attack northern Israel. Her family encouraged her to stay in Maicao, a dusty border town with a free trade zone that is home to Colombia’s largest Muslim population.

Today, Hezbollah is the most powerful political movement in Lebanon — and its influence stretches all the way to Maicao. Each year, millions of dollars of drug money are laundered in Maicao, where some community members openly proclaim their support for Hezbollah. Recent U.S. Treasury Department actions have slowed the flow of cash to terrorist groups, but financiers have fled and new networks have reconstituted that are harder to identify. Meanwhile, the usual suspects — Lebanese descendant Colombians — are tired of taking the blame.

Hajj Ahmad, 49, occasionally reads with shock the Maicao newspaper reports of neighbors blacklisted by the U.S. Treasury Department for financing the terrorist group. Such was the case for a young woman with a pretty face and black hijab or headscarf who lived alone with her sons and tended nearby family shops.

The woman, Fatima Fadlallath Cheaitilly, was cited in a December 2011 Treasury report as a key associate in a criminal network of drug traffickers and money launderers. The family shops were fronts for money laundering, and around the time of the action, U.S. law enforcement sources believe Cheaitilly was dating Hezbollah financier Mohamad Zoubein El Khansa.

Ahmad said she had often spent time with Cheaitilly at parties and functions at the Colombian-Arab school that her children attended. “Never would you think that this woman, as fragile as she was, would be involved in something so monstrous,” she said. “When this came out and they named the people involved, we were left thinking ‘Wow, what happened there?’”

While Ahmad and many of her Sunni friends denounce Hezbollah, many of Maicao’s minority Shiite population are in favor of the organization´s political and military objectives in their homeland.

Lebanese descendant community members may support the group ideologically, while sympathizing money launderers and terrorism financiers funnel cash back to Lebanon to support the group financially.

Ali Yalili, 35, a member of the Shiite community in Maicao, said he believes they are unfairly targeted as financiers of terrorism.

“If you are Shiite, have money and your business is going well, they make your out to be a money launderer, Hezbollah supporter, terrorist and cause you problems,” Yalili said. “Here, no one comes to fight, to be a terrorist, or to kill anyone. People come in search of their daily bread to eat, to live.””

But Many Lebanese descendants also come to Maicao to launder drug money to the tune of millions of dollars per year, according to law enforcement sources. In December 2011, Treasury named five family groups of Lebanese descent and first generation Colombians whose laundering proceeds found their way back to Hezbollah.

The way it works is a money launderer today may work for 5-10 different drug trafficking groups. Those groups in turn pay taxes or fees to terrorist groups to operate in their territories, proliferating terrorism and violence in Colombia and the Middle East. Likewise, sympathizing launderers may make sizable voluntary donations to Hezbollah.

In June 2012, Treasury named former Maicao resident Mohammed Saleh, who is believed to be a leading fundraiser for Hezbollah in Maicao. A prominent Shiite businessman and former Hezbollah fighter, Saleh and his brother Kassem were implicated by the Treasury Department as terrorism financiers. Neighboring shopkeepers on Maicao´s Tenth Street said the two fled overnight after their names and businesses were made public. The brothers remain at large, reportedly hiding in neighboring Venezuela…

h1

City: 28 gangs run 59 businesses that fund terror

November 1, 2013

Birmingham, Britain’s second largest city, has identified 28 criminal gangs that are operating 59 primarily cash-based businesses that are laundering money in part to finance terrorism.

Ever get a funny feeling when you walk into certain shops?  Do you ever find it odd when a big store won’t accept credit cards?  Does the store have signs up forbidding photography?  Do the employees look at you funny when you enter?  Does the business seem to stay open despite a lack of customers, or does it occupy too large a space for the amount of traffic it normally receives?  Do they sell deeply discounted merchandise, such as pirated CDs, DVDs, or dirt cheap cell phones?

Don’t ignore these red flags and your feelings of discomfort.  Don’t buy anything there, and just walk away.

H/t El Grillo.

Birmingham’s crime gangs fund terrorists

23 Oct 2013

City gyms, cafes and restaurants used for recruiting extremists, say police

A top-level police report has revealed crime gangs in Birmingham are funding terrorism.

And the criminal groups now run 59 legitimate businesses in the city, often using them to launder money made from drug dealing, robberies, and even gun-running.

The potential threats facing Birmingham and its residents is laid bare in a detailed report compiled by the Assistant Chief Constable of West Midlands Police, Sharon Rowe.

It was written for Birmingham Community Safety Partnership, involving members of the city council, probation service, police and fire service.

The report, published online, confirms there are currently 28 organised crime gangs (OCGs) operating in the city and highlights the scale of their operations and influence.

But it is believed there are 306 OCGs whose criminality affects Birmingham.

The report states the Birmingham gangs now run 59 legitimate businesses, often using them to launder proceeds from their criminal activities, which include drug dealing, robberies, car key burglaries and even gun-running.

They include pubs, car washes and sandwich shops, which normally deal in cash.

For the first time, the report also reveals some of the groups are believed to be funding terrorism.

It states: “There is evidence that some Birmingham OCGs use the profits from crime to help fund terrorist activities”…

h1

Lebanese businesses in Europe fund Hezbollah

June 13, 2013

Hezbollah’s financial activities in South America and West Africa are well known, but their European enterprises should also be scrutinized.

Lebanese businessmen, front groups, and khums donors who aid Hezbollah are seldom investigated because the EU does not consider Hezbollah to be a terrorist organization.

Fortunately, Tablet Magazine is looking into issue, and offered this informative article on June 4.  An excerpt follows:

…What Europe should really be worried about is the group’s European business empire and its ramifications for the continent.

Lebanese Shiite communities in Europe provide good recruiting pools for the Party of God and often donate money to Hezbollah-sponsored charities that raise funds for social causes in Lebanon. Businessmen affiliated with Hezbollah also set up façade companies in countries with lax legislation and weak and corrupt governments and then transfer their funds to respectable European accounts. The latter are more important to the Lebanese group. Technically abiding by the European laws and keeping a low profile, they make most of the money the group needs to finance not only its military program but also the schools, hospitals, and community activities meant to secure the group’s popular base inside Lebanon.

According to Lebanese University professor Hares Suleiman, Hezbollah started building its business empire in 2001-2002, following the example of the Iranian Revolutionary Guards, which had set up networks of companies in the Gulf. “Hezbollah started contacting businessmen and building partnerships, increasing its capital and investing in hotels, the car trade, clothes manufacturing, and wholesale,” he said. “At the same time, Hezbollah members and supporters—who were not businessmen to start with—opened new businesses, investments, and institutions in Lebanon and abroad, in places such as Africa and the Gulf. After the 2006 July War, the phenomenon increased,” he pointed out.

The change was obvious in South Lebanon, where castle-like villas sprang up out of nowhere after the July 2006 war. Most locals would give you the official line of the party they support: They built their villas to show how fast the Lebanese resistance could regenerate after the war with Israel. In the town of Kherbet Selem, where Hezbollah controls the local council, the mayor’s relatives built an actual castle with the Brazilian flag on top—a clue to the source of the money, in Hezbollah’s burgeoning South American business empire—and Hezbollah’s leader Hassan Nasrallah’s pictures lining the walls.

Most of the money channeled toward South Lebanon’s villages comes from Latin America and West Africa, where most of Hezbollah’s businesses are located. But informed sources say that even some of that money makes stops in Europe-based accounts belonging to financiers and is then laundered through European-based sister companies so it doesn’t attract too much attention.

Lebanese Shiite communities of Hezbollah supporters in Europe also raise funds for the Party of God through donations made to charities. Germany has a large community of Hezbollah supporters that has grown considerably during the past decade. German media reported in 2007 that 900 Hezbollah activists were in the country and that they regularly meet in 30 cultural community centers and mosques. These activists financially supported Hezbollah in Lebanon through fundraising organizations, such as the “Orphans Project Lebanon Association.” Funds donated to that association were then transferred to Hezbollah’s Al Shahid Association, which supports the families of the Party of God’s military personnel who are killed in action.

Sweden also hosts a strong community of Hezbollah supporters, which it allows to operate freely in the country. Several rallies organized by the party’s supporters had quite a considerable turnout in the country’s main cities and were supported by Sweden’s left-wing opposition parties. In the last year two Lebanese-Swedish men were arrested in separate instances for trying to plan attacks on Israelis in Bangkok and Cyprus. Hezbollah has also done public fundraising in other EU countries such as Denmark.

But the European authorities and law-enforcement agencies often do not look into Hezbollah’s fundraising activities, or into businesses that might have links to Hezbollah, because they are not seen as a threat to public security in Europe—no matter how clear the links are to organizations that sponsor violence elsewhere…

h1

Front group finance: recommended reading

May 23, 2013
  • Are tea party groups subjected to greater scrutiny than Islamic charities? A nonprofit consultant says yes (h/t creeping)… more>>
  • How Saudi charitable fronts pump millions of dollars via hawala into Kashmir to transform it into a valley of Wahhabism… more>>
  • Islamic charities have exploited America to fund Chechen jihadists since 9/11… more>>
  • No longer confined to the blogosphere, the Associated Press reports on the legal battle between a Christian publisher and a terror-linked Muslim syndicate… more>>