Posts Tagged ‘sanctions’

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Stashes and sanctions: suggested news reading

May 28, 2015
  • ISIS financier killed in raid; documents seized… more>>
  • Danish jihadists receive 400,000 crowns in welfare benefits, and counting… more>>
  • Iraq faced sanctions for years thanks to Saddam. Now it faces sanctions again thanks to an Iraqi airline helping Iran evade its sanctions… more>>
  • Spain busts up a Chinese money laundering operation that helps illustrate how “smurfing” works… more>>
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Hezbollah expects payday from Iran deal

April 14, 2015

Excerpts follow from an IPT report regarding the effect of a nuclear deal with Iran that would lift sanctions against them.  Iranian catspaw terror groups stand to benefit from the money that will flow their way.  Hat tip to El Grillo:

The framework agreement on Iran’s nuclear program is set to refill Iran’s coffers and enable the Islamic Republic to invest considerable treasure in its regional network of terrorist and guerilla proxies…

They include the Shi’ite Lebanese organization Hizballah – the most highly armed terrorist entity in the world, active in the Syrian civil war – the Shi’ite Houthi forces currently seizing and destabilizing Yemen, a plethora of militant Shi’ite militias in Iraq, the Islamic Jihad terror group in Gaza and the West Bank, and Hamas, with which Iran has recently mended relations. Iran has begun sending Hamas, which rules over Gaza, tens of millions of dollars for its combat tunnel reconstruction and rocket manufacturing programs. The Iranian investment in Gaza’s Islamist war capabilities will only rise after sanctions are lifted.

Iran will also be able to use the money to boost its partners, who are increasingly reliant on its aid, and which are subject to Iranian directives. Iranian regional partners include the Assad regime in Syria, which has killed enormous numbers of innocent civilians in the country’s civil war, and the Shi’ite Iraqi government, dependent on Iranian support in the war against the Islamic State.

Once international sanctions are lifted, Iran stands to secure over $100 billion in unfrozen funds in foreign exchange assets around the world. Soon afterwards, international companies are expected to rush into Iran to invest, and oil sales will resume, generating huge new revenue sources.

The Islamic Republic will, without question, siphon off a part of that money to its various tentacles abroad, providing them with cash, training, and array of weapons, such as guided rockets and missiles for Hizballah, firearms and projectile capabilities to militias in Iraq and Yemen, and missiles for the Assad regime in Syria…

Hizballah chief Hassan Nasrallah has acknowledged the impact of lifting the sanctions on Iran, telling a Syrian television channel on Monday that the deal will “strengthen Tehran’s role in the region.”

“Iran will become richer and wealthier and will also become more influential,” Nasrallah told Syria’s Al-Ekhbariya TV. “This will also reinforce the position of its allies.”

“A stronger and wealthier Iran, in the coming phase, will be able to stand by its allies, and especially the Palestinian resistance, more than at any other time in history,” Nasrallah stated…

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Clandestine money news: suggested reading

February 12, 2015
  • Vigilante hackers want to bankrupt terrorists by attacking their banks’ websitesmore>>
  • A federal judge rejects a slap-on-the-wrist deal with a corporation that made $21 million from illegal transactions with Iran… more>>
  • ISIS is assessing a 50 percent payroll tax against Iraqi civil servants working in their territory… more>>
  • Despite being designated a state sponsor of terrorism, Syria has been given $200,000 of your tax dollars through the U.S. Ambassadors Fund for Cultural Preservation… more>>
  • Want more news? Visit Drugs & Thugs Blog for more recommended reading… more>>
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Lawsuit: sanctions evasion helped kill U.S. troops

November 30, 2014

Many of the attacks during the Iraq insurgency that left over 4,000 American troops dead were carried out by Sunni militants funded by and aligned with Al Qaeda, former members of Saddam Hussein’s regime, the Gulf monarchies, or combinations of all three. But a new lawsuit by veterans and the families of our war dead is pointing out that a lot of the killing of coalition forces also came from Shia terrorists trained and funded by Iran. Iran was able to fund the trainers of those terrorists partly because of Iran’s access at the time to the international financial system as allowed by major banks with branches in the U.S. despite the sanctions against Iran throughout the 2000s.

From Reuters earlier this month (h/t El Grillo):

U.S. veterans sue banks, claim they should pay for Iraq attacks

Wounded U.S. veterans and family members of U.S. soldiers killed in Iraq sued five European banks on Monday, seeking to hold them responsible for shootings and roadside bombings because they allegedly processed Iranian money that paid for the attacks.

The lawsuit filed in U.S. District Court in Brooklyn, New York, named Barclays Plc, Credit Suisse Group AG, HSBC Holdings Plc, Royal Bank of Scotland Group Plc and Standard Chartered.

Barclays, Credit Suisse, RBS and Standard Chartered declined to comment. HSBC did not respond to requests for comment.

The lawsuit was brought under the U.S. Anti-Terrorism Act, a 1992 law that permits victims to bring private suits against alleged financiers of militant operations.

The lawsuit alleges the banks conspired with Iranian banks to mask wire transactions in order to evade U.S. sanctions. The Iranian banks then funneled more than $100 million to militant groups that operated in Iraq at Iran’s direction, according to the suit.

The militant groups included a Shi’ite militia in Iraq, Kataib Hezbollah, as well as Quds Force, the overseas arm of Iran’s Islamic Revolutionary Guard Corps, the suit says.

Since 2009, the five banks have agreed to pay about $3.2 billion to the U.S. government to resolve allegations that they handled money in violation of sanctions against nations such as Iran, Libya and Cuba. All the banks signed deferred prosecution agreements with the U.S. Justice Department in addition to settlements with U.S. banking regulators…

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Terror payola news: recommended reading

October 2, 2014
  • 300 plaintiffs would have their health or loved ones back if it hadn’t been for Arab Bank and the money they handled for Hamas, a jury finds… more>>
  • Qatar gave $15 million to the institute that keeps a key U.S. negotiator for peace in the Middle East on its payroll.  The summary in Latin is quid pro quomore>>
    (h/t Europe News)
  • The smoke clears on the history of Hezbollah‘s cigarette smuggling in North Carolina with the publication of Lightning out of Lebanonmore>>
    (hat tip El Grillo)
  • The Israel-Gaza rocket war was triggered by a $61.5K contract killing of three Israeli teenagers ordered by Hamas… more>>
  • Treasury’s top authority on the subject says, “Qatar, a longtime U.S. ally, has for many years openly financed Hamas”… more>>
  • On Hamas’s recent bank robbery of $750,000 from the Bank of Palestine in Gaza City… more>>
    (h/t El Grillo)
  • Ukraine lists 172 Russian citizens & 65 Russian companies to be sanctioned “for financing terrorism”… more>>

 

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Supporting mischief: recommended news reading

July 17, 2014
  • Are we in an age of unilateral easing of sanctions on rogue states without obtaining meaningful changes in behavior first? Case in point:  Japan on North Korea… more>>
  • A University of Texas student has pleaded guilty to luring recruits to wage jihad in Somalia, or, failing that, to prepare for World War IIImore>>
  • Boko Haram is illustrating how ineffective U.S. counter-terror finance policies can be… more>>
  • Smuggling eight guns from Minnesota to Nigeria stuffed in a brown paper bag between the seat cushions of a ’98 Mercury is one way to run afoul of authorities… more>>
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Sanctions needed against Pakistan’s spy agency

March 25, 2014

This piece is also published at Terror Finance Blog today:

When dealing with undesirable behavior by foreign governments, the U.S. has increasingly employed narrowly targeted sanctions against individual officials of those governments, from human rights abusers in Syria to Russian leaders responsible for the annexation of Crimea.

But the same logic has yet to be applied to the ISI, Pakistan’s terrorist-sponsoring intelligence agency, which, compared to Russia and Syria, has posed a more direct threat to U.S. forces and civilians through the ISI’s sponsorship of terrorism against our troops in Afghanistan and through the safe haven it provided to Osama Bin Laden.

New York Times reporter Carlotta Gall revealed last week that, “Soon after the Navy SEAL raid on Bin Laden’s house, a Pakistani official told me that the United States had direct evidence that the ISI chief, Lt. Gen. Ahmed Shuja Pasha, knew of Bin Laden’s presence in Abbottabad,”  and that the ISI ran a special desk to “handle” Bin Laden.

The Bin Laden revelation is only the tip of the iceberg.  The Taliban itself was created by Pakistan, which allowed Al Qaeda to use Afghanistan as a base for hatching the 9/11 plot.  The perpetrators of the 26/11 terrorist attacks against Mumbai that left over 160 dead were also “clients and creations of the ISI.”

In an intercepted conversation, former ISI chief Gen. Ashfaq Kayani was heard describing Jalaluddin Haqqani, leader of the terrorist Haqqani network, as a “strategic asset.”  That is the way that Pakistani intelligence has looked at jihadists for decades—that holy warriors provide strategic depth and variety to the conventional armed forces along Pakistan’s borders.  They regard terrorism as a tool in a broader arsenal against Pakistan’s foes, making the country a state sponsor of terrorism in the truest sense of the phrase.

Designating a foreign spy service as a terrorist entity wouldn’t be such a major leap as it appears at first blush.  Interrogators at Guantanamo Bay are already trained to treat detainees affiliated with ISI the same way they would treat detainees affiliated with Al Qaeda or the Taliban.  The approach is partly due to evidence of ISI’s role in coordinating terrorist groups in operations targeting Afghanistan and India.

There is already some support for such sanctions.  Bruce Riedel, former CIA official and senior fellow at the Brookings Institute, called for individual sanctions against ISI officials.  New York writer Suketu Mehta said “America and other countries should declare Pakistan’s Inter-Services Intelligence, some of whose officials have a long history of backing terrorists attacking India, ‘a terrorist entity’.”  The Afghan National Security Council also expressed strong support last year for designating the ISI as a terrorist organization (see here and here).

Are there arguments against levying sanctions against the ISI?  Yes.  Pakistan could retaliate by ceasing its assistance to us while our troops are still fighting in Afghanistan.  But if it weren’t for Pakistan playing midwife to the Taliban, and the Taliban subsequently partnering with Al Qaeda, the terrorist attacks of 9/11 wouldn’t have happened in the first place.  It makes little sense to mollycoddle the puppet master because we think it will help us attack the puppet.

Unfortunately, sanctions often don’t achieve the desired results.  Foreign aid is fungible, and if the U.S. and U.K. continue bestowing lavish foreign aid upon Pakistan, the government there will simply be able to move money from development and education projects toward military and intelligence operations.

But to the extent that we use sanctions at all as an instrument of foreign policy, it should be done for the right reasons.  Lately we use sanctions like a necktie that we wear to look fashionable, while absentmindedly dangling the tie over a paper shredder.  Rather than a entangling ourselves in the regional or internal affairs of bad actors in places where we have few interests, sanctions should be used as a tool used to serve our own national security interests, and to contain those whose actions do us harm.

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