Posts Tagged ‘Yemen’

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The $20,000 behind the Paris attacks came “from abroad”

January 14, 2015

Al Qaeda in the Arabian Peninsula (AQAP) gave $20,000 to future Charlie Hebdo attacker Said Kouachi before he and his brother left Yemen in August 2011 according to CBS News yesterday (h/t El Grillo), which supports Money Jihad analysis of the Kouachis’ funding earlier this week. The report also adds credibility to claims by AQAP and Cherif Kouachi himself that the Charlie Hebdo attacks were planned, ordered, and financed by AQAP itself. The physical transfer of funds to Kouachi suggests that bulk cash smuggling (or the smuggling of other financial instruments) back to Europe was the method used rather than a wire, hawala transaction, or trade-based money laundering operation.

Relatedly, the Associated Press reported weapons for the Paris terrorist attacks came from abroad:

Several people are being sought in relation to the “substantial” financing of the three gunmen behind the terror campaign, said Christophe Crepin, a French police union official. The gunmen’s weapons stockpile came from abroad, and the size of it plus the military sophistication of the attacks indicated an organized terror network, he added.

“This cell did not include just those three, we think with all seriousness that they had accomplices, because of the weaponry, the logistics and the costs of it,” Crepin said. “These are heavy weapons. When I talk about things like a rocket launcher – it’s not like buying a baguette on the corner, it’s for targeted acts.”

The Belgian daily La Dernière Heure corroborates that several of the weapons acquired by the Kouachi brothers and Amedy Coulibaly were bought in Brussels.

The $20,000 figure reported by CBS is also consistent with an estimate over the weekend from counterterror expert Jean-Paul Rouiller. Bloomberg Businessweek reported:

…The Kalashnikov rifles and other weapons used by the attackers, Chérif and Saïd Kouachi and Amedy Coulibaly, likely cost less than €10,000 ($11,800), according to Jean-Paul Rouiller, director of the Geneva Centre for Training and Analysis of Terrorism, a Swiss research group. Including the cost of Saïd Kouachi’s 2011 trip to Yemen, where he may have received training from al-Qaeda, the total price tag for the deadly attacks by the three men might have reached about $20,000…

Bloomberg went on to report that, “for what Rouiller describes as ‘such a low-cost operation,’ financing from abroad would be unlikely”—a theory that now seems to have been disproved by the evidence.

Regardless of where it is finally determined that the funds for the weapons originated, it should be kept in mind that the direct expenses of the Kouachi brothers and Amedy Coulibaly aren’t the only expenditures that matter. The weapons training camp in Yemen that both Kouachi brothers attended in 2011 wasn’t “self-financed” by individual AQAP recruits. The militants at the AQAP camp that trained the Kouachi brothers didn’t self-finance their own wages. The human smuggling network that helped sneak the Kouachi brothers across the border from Oman into Yemen isn’t self-financed. Anwar al-Awlaki, the terrorist imam with whom the Kouachi brothers met while in Yemen and possibly assigned them their marching orders, was not self-financed either. Not to mention that the Kouachi brothers’ basic cost of living in Paris probably wasn’t met by part-time work delivering pizzas and gutting fish at the market.

We will also discover over time that the websites, texts, and videos that the Kouachis and Coulibaly consumed, like most Islamic radical materials, are generally produced by entities backed by Wahhabi patrons. It is important to think of the bigger picture not just of the money it took to carry out the Charlie Hebdo and Hyper Cacher operations, but the amount of money it takes to sustain a terrorist infrastructure in Yemen (and beyond) that these sleeper cells count on for arms, training and guidance.

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2011: France may have paid AQAP $12m ransom

January 13, 2015

In March 2011, three French citizens working for the Lyon-based charity Triangle Génération Humanitaire traveled to Hadramawt, Yemen. Agricultural engineer Pierre Perrault, age 29 at the time; fellow engineer and wife Leah Romary, age 25; and water treatment specialist Amelie Morgaut, age 32, intended to assist local authorities with infrastructure improvement projects, which they did until late May of that year until they were abducted by terrorist-affiliated tribesmen.

Perrault, Romary and Morgaut remained in captivity for six months in the typical fashion of kidnappers in that region of the world, which involves transferring hostages among different groups and locations.  But the strings were ultimately being pulled by Al Qaeda in the Arabian Peninsula (AQAP). In July, AQAP demanded $12 million from France for the aid workers’ release. French officials didn’t immediately comply, but began third party negotiations with AQAP through interlocutors of the sultan of Oman.

In November, the negotiations concluded. A “senior Yemeni tribal mediator” confirmed to the Associated Press that a ransom had been paid for the hostages’ release. The formal payment was made jointly by a Yemeni businessman living in Oman, Ahmed Ben Férid al-Souraimeh, and by the government of Oman, but Oman was most likely reimbursed by French intelligence behind the scenes.

Officially, France says it does not pay ransoms and did not pay a ransom in this case.  But diplomats, security experts, and terrorist groups themselves know that France does in fact pay ransoms quietly through third parties. France has paid $58 million to terrorist groups for the release of French hostages worldwide since 2008 according to the New York Times.

The Triangle Génération Humanitaire aid workers’ captivity overlapped the July to August 2011 time period in which French-Algerian brothers Said and Cherif Kouachi traveled to Yemen (via Oman) for weapons training and to meet with terrorist imam Anwar al-Awlaki.

The payment of a ransom in Yemen within a few months of the Kouachi brothers’ Yemen tour would have been useful to AQAP to fund the continued purchase of weapons for use in Yemen, to maintain training camps in Yemen, to pay wages of militants and marksmanship trainers Yemen, to cover the air travel and border crossing expenses for prospective recruits, to fund the possible remote purchase of AK-47s and RPGs on the black market in France, and to fund planning and communications for future attacks.

After slaying 12 people at the offices of Charlie Hebdo in Paris last Wednesday but shortly before his death on Friday, Cherif Kouachi said that he had been financed by AQAP.

In order to have an honest discussion about whether it is proper to pay ransoms to terrorist groups, we must—as grateful as we are all for the release of the Triangle Génération Humanitaire aid workers—acknowledge the distinct probability that the ransom paid in that case may have been more detrimental than helpful to the long-term security interests of France.

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Kouachi brothers’ weapons trail leads to AQAP

January 12, 2015

Yemini intelligence has confirmed that both Said and Cherif Kouachi travelled to Yemen by way of Oman and received marksmanship training after meeting with deceased terrorist imam Anwar al-Awlaki between July and August of 2011. (French authorities have said earlier that one of the brothers also traveled to Yemen in 2005.) From Reuters:

…”These two brothers arrived in Oman on July 25, 2011, and from Oman they were smuggled into Yemen where they stayed for two weeks,” a senior Yemeni security official, who declined to be named, said.

“They met (al Qaeda preacher) Anwar al-Awlaki and then they were trained for three days in the deserts of Marib on how to fire a gun. They returned to Oman and they left Oman on Aug. 15, 2011 to go back to France.”

A senior Yemeni intelligence source confirmed the brothers had entered Yemen via Oman in 2011, citing the ease with which they entered while the security forces were focused on the Arab Spring protests that were convulsing the country at the time.

The source also confirmed the brothers had met Awlaki “and trained in Wadi Abida,” – which is between Marib and Shabwa provinces where Awlaki was known to move freely…

But the tale of the weapons trail doesn’t end there. During their attacks in Paris last week, the Kouachi brothers had AK-47s, a rocket propelled grenade launcher, and 10 smoke grenades among other military-grade weapons. One expert has theorized that the Kouachi sleeper cell was simply waiting for these weapons until they could activate for the Charlie Hebdo attack.

Many of the firearms on the black market in France are sold by the Italian mafia and originate from the Balkans (and perhaps Libya), but illegal online weapons purchases in France are on the rise, too. Keeping in mind that neither of the Kouachi brothers had full-time jobs, and that even just their two Kalashnikovs would have cost about $3,000, it is unlikely they were able to fund these purchases on their own without external help. Cherif Kouachi said before his death that he had been financed by AQAP.

One wonders when France will begin air strikes against AQAP targets in Yemen.

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Low on donations, AQAP goes on robbery spree

November 21, 2014

Al Qaeda in the Arabian Peninsula is robbing whatever they can—banks, post offices, and exchange houses in a desperate bid to keep the money flowing for their arms and operations, according to Yemeni sources.

Traditionally, robberies are a hallmark of poorly funded terrorist groups that are unable to obtain financial support from more legitimate channels such as contributions from sponsors. It is possible that as Iraq and Syria have become the target for wealthy Gulf donors, other fronts of the global jihad aren’t receiving the same level of sponsorship that they received a few years ago.

From Al-Shorfa on Nov. 6 (h/t El Grillo):

AQAP loots Yemeni citizens’ livelihood to fund its crimes

Al-Qaeda in the Arabian Peninsula (AQAP) has resorted to robbing banks and government facilities to finance its activities, researchers told Al-Shorfa.

In mid-October, AQAP stormed al-Udayn Post Office in Ibb province, stealing 30 million riyals ($140,000), the official news agency Saba reported.

In August, AQAP gunmen stormed the town of al-Qatn in Wadi Hadramaut and robbed a number of local banks and exchange companies, including the Agricultural Credit Bank and a branch of the National Bank, according to news reports.

AQAP is currently suffering from a shortage of funding, which it needs to cover the cost of its crimes and for weapons and explosives, said Saeed al-Jamhi, a researcher specialising in Islamist groups.

This is why the group has resorted to burglary, looting, bank robbery and plundering, despite the fact that Islam forbids such practices, he told Al-Shorfa.

“Extremism has many facets, including unlawfully shedding the blood of others — the most grievous crime,” al-Jamhi said. “Deeming the money of Muslims as permissible [to steal] is another aspect of extremism.”

AQAP resorts to misinterpreting and misrepresenting religious and jurisprudential texts, distorting their words or not interpreting their true meaning, he said, adding, “The sanctity of human life is greater than the sanctity of money, and whoever deems it permissible to take a human life has no qualms about seizing the money of others”.

“Al-Qaeda’s practices, including the heinous killings of innocent civilians, and its bank robberies and looting of state funds by plundering post offices, are unacceptable under Islamic sharia law,” al-Jamhi said.

“These acts have given the world a distorted picture of Islam and brought harm to Muslims,” he added.

Al-Qaeda ‘sheds innocent blood’

Fares al-Saqqaf, strategy advisor to the Yemeni president, told Al-Shorfa that AQAP’s bloodshed and looting indicates it is “in a state of great weakness and disarray”.

The group “is in an obvious state of weakness due to the war waged against it and the siege laid on it both domestically and abroad in the context of the war on terrorism, as represented by the military campaign battling it locally, the army’s pursuit of its gunmen and the blocking of its funding sources”, he said…

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Op Red Tide targets synthetic drug dealing, possible terror funding convenience store owners in Alabama

June 9, 2014

Money from synthetic marijuana and other drugs being sold at Alabama gas stations and convenience stores owned by Middle Eastern men is going back to Yemen and other terrorist hotspots.  This is happening in other states as well, and the feds are cracking down on it through ‘Project Synergy.’

From the Alabama Media Group last month (h/t to El Grillo for sending in related news):

Raids across Alabama and U.S. today target designer drugs, possible terrorist funds

BIRMINGHAM, Alabama – Massive raids are underway today throughout Jefferson County, Alabama and the U.S.

The raids, part of an ongoing operation dubbed Project Synergy, are being carried out by DEA, targeting designer synthetic drugs. “These are clearly made for human consumption and it’s poison,” said Rusty Payne, a DEA spokesman in Washington D.C. The Alabama portion of the raids are being called Operation Red Tide.

Local law enforcement officials, assisted by DEA agents, are going to convenience stores and head shops across the country where the drugs are sold. They include eight classes of drugs, ranging from stimulants to hallucinogens. In the past five years, DEA has identified between 200 and 300 new designer drugs.

At least six locations in Jefferson County – and as many as a dozen – are to be hit today, authorities said. As many as 200 are expected to be visited across the country…

…Payne said there is more to the raids than drug interdiction. Authorities believe some of the owners of these stores send profits from the sale of these drugs back to their homes in Yemen, Jordan, Syria and Lebanon, as well as other countries.

“We believe it’s a matter of national security,” he said.

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Guantanamo detainees endorse crowdfunding

March 7, 2014

This piece by Money Jihad blogger A.D. Kendall has been published today at Terror Finance Blog:

Five detainees at Guantanamo Bay have drawn up a lengthy business plan for an agricultural venture in Yemen as part as an instructional exercise.  The document was approved for release last month by military officials.  Judicial Watch rightly observes that the level of detail in the plan shows that the detainees “had access to many research tools, likely on the internet.”  Although the business proposal appears to be only a classroom activity and not an actual, shovel-ready project, the language in the document indicates that terrorists would be comfortable with crowdfunding as a sharia-compliant platform to raise money.

In their business proposal, the self-described “Board of Directors of Yemen Milk & Honey Farms Ltd” specifically mentions Kickstarter, RocketHub, and other crowdfunding platforms as options for financing their project.  They also note that crowdfunding can be equity-based, lending-based, reward-based, or donation-based.  After reviewing their alternatives, the board concludes that they would like their financing be “equity based or reward based, as the board has observed [that the] interest-based economy is facing serious problems world wide, specifically in Europe and America.”

Using the recession has been a convenient target for Islamist criticism of the Western financial system since 2009, ignoring the fact that the West still leads the world across any recognized standard of economic development and standard of living, and ignoring the larger context of long-term economic success of the West compared to the economic failures of the interest-shunning Arab world over several centuries.  But regardless of current or historical economic conditions, the truth is that the “board members” would still oppose interest on religious grounds.  Riba, the word used in Islamic texts for interest, is the same Arabic word that applies to unnatural growth and swelling akin to pond scum and asthma.

Islamic law allows for profit and investments involving co-ownership and profit sharing.  One such sharia financial concept that shares similar traits with crowdfunding is mudarabah, which Islamic finance lawyer John Dewar defines as, “An investment fund arrangement under which the financiers act as the capital providers (rab al-mal) and the client acts as the mudareb (akin to an investment agent) to invest the capital provided by the rab al-mal and manage the partnership.”  For a sharia crowdfunding project, the donors would serve as the rab al-mal.

Analysts for McKinsey & Co. further note that “Islamic commercial law strongly favors equity over debt financing, which suggests that crowdfund investing platforms are especially well suited to Muslim-majority countries. In our view, crowdfund investing and Islamic financial services are inherently compatible and mutually reinforcing.”

Thus, the business school at Camp 6 of Guantanamo prison is well-aligned with contemporary sharia financial strictures.  The “students” also appear to be one step ahead of regulators, who are just now developing anti-money laundering rules for crowdfunded projects which are be vulnerable to financial crime and exploitation.  As AML attorney Christine Duhaime summed up crowdfunding risks last fall, “The combined effect of crowdfunded securities being low-priced, placed in offerings that are exempt from [SEC] registration and not subject to the filing review process of a registered offering, makes crowdfunding open to being used as a vehicle for money laundering and other financial crimes.”

In addition to crowdfunding regulations currently under review, stronger terms of service by the crowdfunding companies may be in order to prevent exploitation of their websites by users who promote violence, illicit activities, or otherwise serve the interests of criminals and terrorists.

Worrisome projects include a Kickstarter project in 2012 that billed itself as “your chance to become part of the Arab Spring.”  If the two men who proposed the project had received the $20,000 they sought, they pledged to “travel together to Syria and join the rebels on the front line against the dictator Bashar al-Assad.”  Late last year, Forbes reported that an anarchist launched a crowdfunded bitcoin-based “assassination market.”  Read the rest of this entry ?

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Illicit transfer news: recommended reading

February 20, 2014
  • Palestinian Islamic Jihad “receives between $100-$150 million dollars annually from Iran,” says an Iranian expert… more>>
  • FinCEN shuts down a Michigan-based hawala dealer who sent 8,000 wires to Yemen and never checked a single customer’s ID… more>>
  • We don’t know how much money is financing terrorism, and we don’t know how much it costs to combat its financing either, so how do we know if what we’re doing is working?  More>>
  • A New Jersey company illegally shipped $70,000 worth of protective gloves to Iranmore>>
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