Ralph Nieves, a wiry ex-NYPD narcotics detective, lived through the aftermath of Sept. 11, 2001, in Manhattan. That is why what he discovered about a particular part of Paraguay during a recent assignment there has so disturbed him.
Working under a U.S. government contract to carry out polygraph examinations of public officials in the country, Nieves said he discovered evidence of pervasive corruption among some police and military units.
It is a situation other law enforcement officials believe has contributed to parts of Paraguay being a terrorist haven where al-Qaida, Hezbollah and allied groups have been for years.
As a result, Paraguay's borders with Brazil and Argentina -- an area called the "tri-border" -- are being increasingly viewed by investigators, as well as American diplomats, as the vulnerable underbelly of the U.S. Ciudad del Este, Paraguay's second largest city,which is suspected of being a financial hub for terror and organized crime groups.
Some American investigators also believe the area's porous borders make it an ideal springboard for terrorists to make their way to the U.S. circuitously through Mexico and the Caribbean by using a variety of smuggling venues.
"Every major criminal organization in the world has a criminal representation in Ciudad del Este," Nieves, 63, said in a recent interview.
The lawlessness of the region makes it a threat for future terrorist financing and action in New York, Nieves said. He isn't alone in his concerns.
"It is being watched," Rep. Peter King, the ranking Republican on the House's Homeland Security Committee, told Newsday recently when asked about the tri-border zone.
Hezbollah, an umbrella organization for Shia Muslims, which started in Lebanon, is believed to have laundered $10 million annually through the area, King said.
Martin Ficke, former head of Immigration and Customs Enforcement in New York and now director of operations for the Jericho-based investigative firm SES Resources Ltd., said the tri-border is a continuing concern for money laundering. Ficke, who worked with the El Dorado money laundering task force, said agents were looking to see how readily terrorists could rely on narcotics networks in Paraguay to move cash to support terror operations. He wouldn't comment further.
Officially, the U.S. Department of State says southern Paraguay has yet to sustain an "operational" presence for al-Qaida, Hezbollah and Hamas. King also doesn't believe al-Qaida is present in the area. But there are documented cases where members and sympathizers of Hamas, a militant Palestinian organization, and Hezbollah have engaged in money laundering, extortion, bombings and other crimes inside Ciudad del Este and surrounding areas. Back in the 1990s, suspects in the bombings of South America's Jewish communities were traced to the area.
Some U.S. officials also believe an al-Qaida ally, a shadowy terrorist group known as Lashkar-e-Taiba, which became active in Kashmir in the 1990s, is now operating in the region. Earlier this year, a Manhattan federal judge sentenced a Baltimore man to 15 years in prison for traveling to Pakistan for terrorism training at one of the group's camps.
A report prepared by the U.S. Embassy in Paraguay in April said the country doesn't have effective ways to deal with money laundering and terrorist financing but does try to cooperate in counterterrorism efforts. Judicial and police corruption were concerns, said the report.
In May, MSNBC ran a brief interview by correspondent Pablo Gato with a young Arab Muslim sympathizer of Hezbollah in Ciudad del Este who threatened to attack the U.S. if Iran was targeted.
"In two minutes, Bush is dead," the man told MSNBC of the threatened consequences of a U.S attack.
While those remarks seem like braggadocio, some U.S. officials have been wary of Hezbollah members infiltrating the United States through Mexico to carry out acts of terror. Washington has been pouring millions into Paraguay to try to strengthen its legal institutions, which is why Nieves, who is a private investigator in the Bronx, was working there.
Nieves took polygraph exams of nearly 80 cops, customs officials and military officers. They were applicants for positions in a special customs task force aimed at improving border controls in Paraguay that was to be funded by American aid dollars.
According to Nieves, one of a few U.S.-based Spanish-language polygraphers active in the business, the officials easily opened up to him. After Nieves assured them that admissions of participating in routine graft -- known locally as "la coima" -- wouldn't get them in trouble, the applicants said they believed criminals were tipped off to investigations by law enforcement officials. In some cases, local prosecutors warned smugglers of raids so they could dispose of contraband, Nieves said.
One customs officer said that some higher-ranked customs officials knew all of the organized crime leaders and provided them with information. Some national police also took part in executions on the border with Brazil near the town of Pedro Juan Caballero, said the official, adding that the killings involved disputes over smuggled goods.
The applicants painted a picture of a wild-west atmosphere where legitimate law enforcement was intimidated by criminals and corrupt higher officials.
"They mentioned terrorists, every organized crime group, al-Qaida, the Chinese," recalled Nieves of his debriefings.
One American law enforcement consultant who didn't want to be identified because he does a lot of business in Paraguay said the country's customs service is prone to corruption because of the low wages officials are paid. But even higher pay won't bring speedy reform, he said.
"They don't look at it as corruption. It is part of the culture," he said. "Everybody takes a piece of the government income."
"Most of those people who were coming forward were decent people. Unfortunately, the circumstances are overwhelming for them," Nieves said about the corruption.
Nieves thinks the United States could benefit by developing its own network of paid informants within Paraguay's customs and border police as an early warning system against terrorism.
"Everyone I met were people we could flip," he said.
http://www.newsday.com/news/nationworld/ny-nypara0101,0,7656260.story
Showing posts with label Paraguay. Show all posts
Showing posts with label Paraguay. Show all posts
on Wednesday, May 2, 2012
Ralph Nieves, a wiry ex-city narcotics detective, lived through the aftermath of Sept. 11, 2001, in Manhattan. That is why what he discovered about a particular part of Paraguay where his expertise was used during a recent assignment has so disturbed him.
Working under a U.S. government contract to carry out polygraph examinations of public officials in the country, Nieves said he discovered evidence of corruption among some police and military units.
It is a situation other law enforcement officials believe has contributed to parts of Paraguay being a terrorist haven where Hezbollah and allied groups have operated for years.
As a result, Paraguay's borders with Brazil and Argentina - an area called the "tri-border" - are being increasingly viewed by investigators, as well as American diplomats, as a vulnerable spot for the United States. Ciudad del Este, Paraguay's second-largest city, is suspected of being a financial hub for terror and organized crime groups. Some American investigators also believe the area's porous borders make it an ideal springboard for terrorists to make their way to the United States through Mexico and the Caribbean by using a variety of smuggling venues.
"Every major criminal organization in the world has a criminal representation in Ciudad del Este," Nieves, 63, said in a recent interview.
The lawlessness of the region makes it a threat for future terrorist financing and action in New York, Nieves said. He isn't alone in his concerns.
"It is being watched," Rep. Peter King (R-Seaford), the ranking Republican on the House Homeland Security Committee, told Newsday recently when asked about the tri-border zone.
In fact, Washington has been pouring millions into Paraguay to try to strengthen its legal institutions, which is why Nieves, who is a private investigator in the Bronx, was working there.
Hezbollah, an umbrella organization for Shia Muslims that started in Lebanon, is believed to have laundered $10 million annually through the area, King said.
Moving cash a concern
Martin Ficke, former head of Immigration and Customs Enforcement in New York and now director of operations for the Jericho-based investigative firm SES Resources Ltd., said the tri-border is a continuing concern for money laundering. Ficke, who worked with the El Dorado, the federal money laundering task force, said agents were looking to see how readily terrorists could rely on narcotics networks in Paraguay to move cash to support terror operations. He wouldn't comment further.
The U.S. Department of State says southern Paraguay has yet to sustain an "operational" presence for al-Qaida, Hezbollah or Hamas. King also doesn't believe al-Qaida is present in the area. But there are documented cases where members and sympathizers of Hamas, a militant Palestinian organization, and Hezbollah have engaged in money laundering, extortion, bombings and other crimes inside Ciudad del Este and surrounding areas. Back in the 1990s, suspects in the bombings of South America's Jewish communities were traced to the area and arrested.
Some U.S. officials also believe an al-Qaida ally, a shadowy terrorist group known as Lashkar-e-Taiba, which became active in Kashmir in Pakistan in the 1990s, is now operating in the region. Earlier this year, a Manhattan federal judge sentenced a Baltimore man to 15 years in prison for traveling to Pakistan for terrorism training at one of the group's camps.
A report prepared by the U.S. Embassy in Paraguay in April said the country doesn't have effective ways to deal with money laundering and terrorist financing but does try to cooperate in counterterrorism efforts. Judicial and police corruption were concerns, the report said.
In May, MSNBC ran a brief interview by correspondent Pablo Gato with a young Arab Muslim sympathizer of Hezbollah in Ciudad del Este who threatened an attack on the United States if Iran was targeted.
"In two minutes, Bush is dead," the man told MSNBC of the threatened consequences of a U.S attack.
Nieves' assignment in Paraguay was to take polygraph exams of nearly 80 cops, customs officials and military officers. They were applicants for positions in a special customs task force aimed at improving border controls in Paraguay that was to be funded by U.S. aid dollars.
Inside information
According to Nieves, one of a few U.S.-based Spanish language polygraphers active in the business, the applicants easily opened up to him. After Nieves assured them that admissions of participating in routine graft - known locally as "la coima" - wouldn't get them in trouble, the applicants said they believed criminals were tipped off to investigations by law enforcement officials. In some cases, local prosecutors warned smugglers of raids so they could dispose of contraband, Nieves said.
One customs officer said that some higher-ranked customs officials knew all of the organized crime leaders and provided them with information. Some national police also took part in executions on the border with Brazil near the town of Pedro Juan Caballero, said the official, adding that the killings involved disputes over smuggled goods.
The applicants painted a picture of a wild west atmosphere where legitimate law enforcement was intimidated by criminals and corrupt higher officials.
One U.S. law enforcement consultant who didn't want to be identified because he does a lot of business in Paraguay said the country's customs service is prone to corruption because of the low wages officials are paid. But even higher pay won't bring speedy reform, he said.
"They don't look at it as corruption. It is part of the culture," he said. "Everybody takes a piece of the government income."
"Most of those people who were coming forward were decent people. Unfortunately, the circumstances are overwhelming for them," Nieves said about the corruption.
Nieves thinks the United States could benefit by developing its own network of paid informants within Paraguay's customs and border police as an early warning system against terrorism.
"Everyone I met were people we could flip," he said.
http://www.newsday.com/news/local/newyork/ny-nypara275522656jan02,0,1336126.story
Working under a U.S. government contract to carry out polygraph examinations of public officials in the country, Nieves said he discovered evidence of corruption among some police and military units.
It is a situation other law enforcement officials believe has contributed to parts of Paraguay being a terrorist haven where Hezbollah and allied groups have operated for years.
As a result, Paraguay's borders with Brazil and Argentina - an area called the "tri-border" - are being increasingly viewed by investigators, as well as American diplomats, as a vulnerable spot for the United States. Ciudad del Este, Paraguay's second-largest city, is suspected of being a financial hub for terror and organized crime groups. Some American investigators also believe the area's porous borders make it an ideal springboard for terrorists to make their way to the United States through Mexico and the Caribbean by using a variety of smuggling venues.
"Every major criminal organization in the world has a criminal representation in Ciudad del Este," Nieves, 63, said in a recent interview.
The lawlessness of the region makes it a threat for future terrorist financing and action in New York, Nieves said. He isn't alone in his concerns.
"It is being watched," Rep. Peter King (R-Seaford), the ranking Republican on the House Homeland Security Committee, told Newsday recently when asked about the tri-border zone.
In fact, Washington has been pouring millions into Paraguay to try to strengthen its legal institutions, which is why Nieves, who is a private investigator in the Bronx, was working there.
Hezbollah, an umbrella organization for Shia Muslims that started in Lebanon, is believed to have laundered $10 million annually through the area, King said.
Moving cash a concern
Martin Ficke, former head of Immigration and Customs Enforcement in New York and now director of operations for the Jericho-based investigative firm SES Resources Ltd., said the tri-border is a continuing concern for money laundering. Ficke, who worked with the El Dorado, the federal money laundering task force, said agents were looking to see how readily terrorists could rely on narcotics networks in Paraguay to move cash to support terror operations. He wouldn't comment further.
The U.S. Department of State says southern Paraguay has yet to sustain an "operational" presence for al-Qaida, Hezbollah or Hamas. King also doesn't believe al-Qaida is present in the area. But there are documented cases where members and sympathizers of Hamas, a militant Palestinian organization, and Hezbollah have engaged in money laundering, extortion, bombings and other crimes inside Ciudad del Este and surrounding areas. Back in the 1990s, suspects in the bombings of South America's Jewish communities were traced to the area and arrested.
Some U.S. officials also believe an al-Qaida ally, a shadowy terrorist group known as Lashkar-e-Taiba, which became active in Kashmir in Pakistan in the 1990s, is now operating in the region. Earlier this year, a Manhattan federal judge sentenced a Baltimore man to 15 years in prison for traveling to Pakistan for terrorism training at one of the group's camps.
A report prepared by the U.S. Embassy in Paraguay in April said the country doesn't have effective ways to deal with money laundering and terrorist financing but does try to cooperate in counterterrorism efforts. Judicial and police corruption were concerns, the report said.
In May, MSNBC ran a brief interview by correspondent Pablo Gato with a young Arab Muslim sympathizer of Hezbollah in Ciudad del Este who threatened an attack on the United States if Iran was targeted.
"In two minutes, Bush is dead," the man told MSNBC of the threatened consequences of a U.S attack.
Nieves' assignment in Paraguay was to take polygraph exams of nearly 80 cops, customs officials and military officers. They were applicants for positions in a special customs task force aimed at improving border controls in Paraguay that was to be funded by U.S. aid dollars.
Inside information
According to Nieves, one of a few U.S.-based Spanish language polygraphers active in the business, the applicants easily opened up to him. After Nieves assured them that admissions of participating in routine graft - known locally as "la coima" - wouldn't get them in trouble, the applicants said they believed criminals were tipped off to investigations by law enforcement officials. In some cases, local prosecutors warned smugglers of raids so they could dispose of contraband, Nieves said.
One customs officer said that some higher-ranked customs officials knew all of the organized crime leaders and provided them with information. Some national police also took part in executions on the border with Brazil near the town of Pedro Juan Caballero, said the official, adding that the killings involved disputes over smuggled goods.
The applicants painted a picture of a wild west atmosphere where legitimate law enforcement was intimidated by criminals and corrupt higher officials.
One U.S. law enforcement consultant who didn't want to be identified because he does a lot of business in Paraguay said the country's customs service is prone to corruption because of the low wages officials are paid. But even higher pay won't bring speedy reform, he said.
"They don't look at it as corruption. It is part of the culture," he said. "Everybody takes a piece of the government income."
"Most of those people who were coming forward were decent people. Unfortunately, the circumstances are overwhelming for them," Nieves said about the corruption.
Nieves thinks the United States could benefit by developing its own network of paid informants within Paraguay's customs and border police as an early warning system against terrorism.
"Everyone I met were people we could flip," he said.
http://www.newsday.com/news/local/newyork/ny-nypara275522656jan02,0,1336126.story
on Thursday, April 19, 2012
Iran is increasing its activity in Latin America and the Caribbean, including actions aimed at supporting the Lebanese militant group Hezbollah, a top U.S. military commander said on Tuesday.
Navy Admiral James Stavridis, who oversees U.S. military interests in the region as head of U.S. Southern Command, also said Hezbollah was linked to drug-trafficking in Colombia.
"We have seen... an increase in a wide level of activity by the Iranian government in this region," Stavridis told the Senate Armed Services Committee.
"That is a concern principally because of the connections between the government of Iran, which is a state sponsor of terrorism, and Hezbollah," he said.
The U.S. State Department lists the Lebanese-based political and military movement as a terrorist organization.
Stavridis said Hezbollah activities in South America have been concentrated particularly in the border region between Brazil, Paraguay and Argentina, but also in Colombia.
"We have been seeing in Colombia a direct connection between Hezbollah activity and narco-trafficking activity," the commander added, without providing specifics.
Colombia said last October that it had smashed a drug and money-laundering ring suspected of shipping funds to Hezbollah.
Hezbollah has denied links to drugs and money-laundering and described allegations as part of a propaganda campaign aimed at harming its image.
President Barack Obama's administration has sought to move toward dialogue with Tehran, despite sharp differences on several topics including Iran's nuclear program. Iran says it only wants to generate power while the Washington and its allies accuse Tehran of trying to build a nuclear bomb.
Stavridis is the latest U.S. defense official to express concerns about Iranian influence in Latin America, where the left-wing governments in Venezuela, Cuba, Ecuador, Nicaragua and Bolivia have all become allies of Iran in recent years.
In January, Defense Secretary Robert Gates told the same Senate panel he was more worried about Iranian "meddling" than he was about Russia's activities in Latin America.
(Reporting by David Morgan, editing by Alan Elsner)
Source: Reuters
Navy Admiral James Stavridis, who oversees U.S. military interests in the region as head of U.S. Southern Command, also said Hezbollah was linked to drug-trafficking in Colombia.
"We have seen... an increase in a wide level of activity by the Iranian government in this region," Stavridis told the Senate Armed Services Committee.
"That is a concern principally because of the connections between the government of Iran, which is a state sponsor of terrorism, and Hezbollah," he said.
The U.S. State Department lists the Lebanese-based political and military movement as a terrorist organization.
Stavridis said Hezbollah activities in South America have been concentrated particularly in the border region between Brazil, Paraguay and Argentina, but also in Colombia.
"We have been seeing in Colombia a direct connection between Hezbollah activity and narco-trafficking activity," the commander added, without providing specifics.
Colombia said last October that it had smashed a drug and money-laundering ring suspected of shipping funds to Hezbollah.
Hezbollah has denied links to drugs and money-laundering and described allegations as part of a propaganda campaign aimed at harming its image.
President Barack Obama's administration has sought to move toward dialogue with Tehran, despite sharp differences on several topics including Iran's nuclear program. Iran says it only wants to generate power while the Washington and its allies accuse Tehran of trying to build a nuclear bomb.
Stavridis is the latest U.S. defense official to express concerns about Iranian influence in Latin America, where the left-wing governments in Venezuela, Cuba, Ecuador, Nicaragua and Bolivia have all become allies of Iran in recent years.
In January, Defense Secretary Robert Gates told the same Senate panel he was more worried about Iranian "meddling" than he was about Russia's activities in Latin America.
(Reporting by David Morgan, editing by Alan Elsner)
Source: Reuters
on Sunday, April 8, 2012
By Matthew Harwood
Film piracy by organized crime is flourishing worldwide, with some of the proceeds possibly financing terrorism, according to a new report from the RAND Corp. financed by the Motion Picture Association.
“If you buy pirated DVDs, there is a good chance that at least part of the money will go to organized crime and those proceeds fund more dangerous criminal activities, possibly terrorism,” said RAND’s Greg Treverton, the study’s lead author.
The criminal organizations that traffic pirated DVDs span the globe and often have multinational criminal connections. The report tells of one Italian crime boss turned government witness who explained the his organization's connection to Chinese and Taiwanese criminal gangs involved in film piracy and other acts of counterfeiting.
“Given the enormous profit margins, it’s no surprise that organized crime has moved into film piracy,” said Treverton.
The profits associated with film piracy are astounding, outperforming revenue generated from both Iranian heroin and Colombian cocaine. In Malaysia, a pirated DVD costs 70 cents to make and sells on a corner in London for $9, more than 1,000 percent markup.
The report also discusses three groups that have used film piracy to finance terrorism. The best-documented case involves the Irish Republican Army, which used film piracy among other criminal activities, to fund its terrorist campaign against the British government. Another case involves the D-Company, an Indian criminal group heavily involved in film piracy. In 1993, the group carried out a string of bombings on what became known as “Black Friday” in Mumbai, killing 257 people and wounding hundreds more.
The third example has the most relevance today.
In 2004, the U.S. government labeled DVD pirate and counterfeiter extraordinaire Assad Ahmad Barakat “a specially designated global terrorist” for transferring $3.5 million to Hezbollah. His criminal network operates within the heavily Lebanese tri-border area of Argentina, Brazil, Paraguay, in what RAND calls “most important center for financing Islamic terrorism outside the Middle East.” (For more on the connection between Islamic extremism, terrorist financing, and the tri-border region, see John Barham's "Hezbollah's Latin American Home," from the Feb. 2008 issue.)
RAND notes the boom in film piracy is directly linked to weak penalties when someone is caught and convicted, which is rare.
An individual convicted of selling counterfeit products in France can expect a maximum of two years in prison and a $190,000 fine compared to ten years in prison and a fine of $9.5 million if caught selling drugs. In the United States, 134 people were sentenced to federal prison for intellectual property crimes in 2002, while 1.5 million people were arrested for drug offenses nationwide in 2003.
If governments worldwide want to decrease the volume of counterfeited goods and cut off a possible avenue of terrorist financing, RAND recommends spending more money and manpower to address the problem while passing tougher penalties for those convicted of counterfeiting and other intellectual property crimes.
Source: Security Management
Film piracy by organized crime is flourishing worldwide, with some of the proceeds possibly financing terrorism, according to a new report from the RAND Corp. financed by the Motion Picture Association.
“If you buy pirated DVDs, there is a good chance that at least part of the money will go to organized crime and those proceeds fund more dangerous criminal activities, possibly terrorism,” said RAND’s Greg Treverton, the study’s lead author.
The criminal organizations that traffic pirated DVDs span the globe and often have multinational criminal connections. The report tells of one Italian crime boss turned government witness who explained the his organization's connection to Chinese and Taiwanese criminal gangs involved in film piracy and other acts of counterfeiting.
“Given the enormous profit margins, it’s no surprise that organized crime has moved into film piracy,” said Treverton.
The profits associated with film piracy are astounding, outperforming revenue generated from both Iranian heroin and Colombian cocaine. In Malaysia, a pirated DVD costs 70 cents to make and sells on a corner in London for $9, more than 1,000 percent markup.
The report also discusses three groups that have used film piracy to finance terrorism. The best-documented case involves the Irish Republican Army, which used film piracy among other criminal activities, to fund its terrorist campaign against the British government. Another case involves the D-Company, an Indian criminal group heavily involved in film piracy. In 1993, the group carried out a string of bombings on what became known as “Black Friday” in Mumbai, killing 257 people and wounding hundreds more.
The third example has the most relevance today.
In 2004, the U.S. government labeled DVD pirate and counterfeiter extraordinaire Assad Ahmad Barakat “a specially designated global terrorist” for transferring $3.5 million to Hezbollah. His criminal network operates within the heavily Lebanese tri-border area of Argentina, Brazil, Paraguay, in what RAND calls “most important center for financing Islamic terrorism outside the Middle East.” (For more on the connection between Islamic extremism, terrorist financing, and the tri-border region, see John Barham's "Hezbollah's Latin American Home," from the Feb. 2008 issue.)
RAND notes the boom in film piracy is directly linked to weak penalties when someone is caught and convicted, which is rare.
An individual convicted of selling counterfeit products in France can expect a maximum of two years in prison and a $190,000 fine compared to ten years in prison and a fine of $9.5 million if caught selling drugs. In the United States, 134 people were sentenced to federal prison for intellectual property crimes in 2002, while 1.5 million people were arrested for drug offenses nationwide in 2003.
If governments worldwide want to decrease the volume of counterfeited goods and cut off a possible avenue of terrorist financing, RAND recommends spending more money and manpower to address the problem while passing tougher penalties for those convicted of counterfeiting and other intellectual property crimes.
Source: Security Management
on Friday, December 15, 2006
The tri-border area, where Paraguay, Brazil and Argentina meet, is a lawless region where drugs trafficking, gun running and counterfeit goods are rife.
The BBC has now found documents showing the suspicious transfer of large sums of money to the Middle East, which investigators believe goes to fund terrorism. The BBC's Andrew Bomford reports from Ciudad del Este in Paraguay.
It didn't look like the global centre of a business sending billions of dollars overseas, but on the first floor of the dingy-looking shopping arcade, if you could get past the two guards blocking the stairs, there it was - a shop, looking like a pawnbrokers, called Telefax.
According to Paraguayan and American investigators, Telefax, owned by a Lebanese businessman called Kassem Hijazi, is responsible for transferring huge sums of laundered money overseas and hiding the identities of the people responsible.
The money is believed to be the proceeds of crime - anything from drug smuggling, to gun running, to counterfeit goods to tax evasion.
"From the evidence and documentation we saw, it was clear that this man was moving large sums, hundreds of millions of dollars, through its doors, in its own name, hiding the identities of who was truly the owners of the money," said Carlos Maza, of the US Department of Homeland Security.
"Kassem Hijazi is a serious player who more than anything else has found the vulnerability in the Paraguayan system, the ability to control how money is moved through its banking system."
'Frustrating situation'
But US investigators are particularly worried that some of this money goes to fund terrorism as well as militant organisations like Hezbollah and Hamas.
Robert Morgenthau, the New York District Attorney, has prosecuted a number of American banks for moving millions of dollars from the tri-border area to what he suspects are terrorist bank accounts in the Middle East.
"We've found money going to the Arab Bank in Ramallah," he told the BBC.
"The Arab Bank is well known as one of the banks used by terrorist organisations. But that's part of the frustration. You don't know who's sending the money and you don't know who's receiving it."
The BBC saw company accounts for Telefax showing a business with an annual turnover of just $50,000.
But a large number of money transfer documents, obtained in a series of raids by Paraguayan prosecutors, show Telefax making international transfers worth ten times that amount almost on a daily basis.
Claims denied
The owner of Telefax, Kassem Hijazi, agreed to do an interview with the BBC.
He produced a large amount of the prosecution paperwork allegedly showing thousands of money transfers, but claimed that every single one of the documents had been forged.
"The proof is here," Mr Hijazi said, indicating the transfer documents.
"They have to prove that I've done it. Even the prosecutor says the documents are false, not us, the prosecutor. I wasn't transferring money abroad. It's the money exchange houses that send the money, and they've forged the documents. We don't do transfers abroad."
Mr Hijazi did admit to using numbers instead of names for his clients, effectively hiding their identities, but he said that was merely to make his paperwork easier.
The BBC examined a number of the transfer documents and saw large amounts of money, around $10m, moving to Lebanon in the space of a year.
Three transfers, for $100,000, $70,000, and $42,200, went in the space of two days to companies in Beirut which did not appear to exist.
Adolfo Marin, the original prosecutor in the case, said it was very difficult to investigate the money transfers because the banks in Beirut were dominated by Hezbollah.
"I have no idea what they can export to us from Lebanon, so necessarily the money that goes to Lebanon is not for imports," he said. "So it is possible to formulate a hypothesis about the probability of money laundering and links with terrorism."
Kassem Hijazi strongly denied any involvement in terrorist financing. "It's absurd," he said.
"It doesn't happen here. The people I work with are friends, not terrorists. They've been investigated and if there was some evidence they would have been charged."
'Helping our brothers'
This view was supported by Sheik Taleb Jomha, the Muslim leader of the 30,000-strong Lebanese community in the tri-border area.
"I am not telling you a secret when I say that Iran and Syria are supporting Hezbollah," he said.
"Iran has the ability to send weapons and rockets, not us. They say money is moving from here to the Middle East. That's right. But not to help political or military groups, but to help our brothers and sisters who need help."
Kassem Hijazi is not facing charges of money laundering or even terrorist financing.
In Paraguay, funding terrorism is not a crime, and the law on money laundering is out of date, making it difficult to achieve a prosecution.
A new law has been languishing, unapproved, in the country's Congress for more than two years.
In the meantime, Mr Hijazi has been accused of tax evasion, which he also denies, and is expected to face trial in 2007.
http://news.bbc.co.uk/2/hi/americas/6179085.stm "From the evidence and documentation we saw, it was clear that this man was moving large sums, hundreds of millions of dollars, through its doors, in its own name, hiding the identities of who was truly the owners of the money," said Carlos Maza, of the US Department of Homeland Security.
"Kassem Hijazi is a serious player who more than anything else has found the vulnerability in the Paraguayan system, the ability to control how money is moved through its banking system."
'Frustrating situation'
But US investigators are particularly worried that some of this money goes to fund terrorism as well as militant organisations like Hezbollah and Hamas.
Robert Morgenthau, the New York District Attorney, has prosecuted a number of American banks for moving millions of dollars from the tri-border area to what he suspects are terrorist bank accounts in the Middle East.
"We've found money going to the Arab Bank in Ramallah," he told the BBC.
"The Arab Bank is well known as one of the banks used by terrorist organisations. But that's part of the frustration. You don't know who's sending the money and you don't know who's receiving it."
The BBC saw company accounts for Telefax showing a business with an annual turnover of just $50,000.
But a large number of money transfer documents, obtained in a series of raids by Paraguayan prosecutors, show Telefax making international transfers worth ten times that amount almost on a daily basis.
Claims denied
The owner of Telefax, Kassem Hijazi, agreed to do an interview with the BBC.
He produced a large amount of the prosecution paperwork allegedly showing thousands of money transfers, but claimed that every single one of the documents had been forged.
"The proof is here," Mr Hijazi said, indicating the transfer documents.
"They have to prove that I've done it. Even the prosecutor says the documents are false, not us, the prosecutor. I wasn't transferring money abroad. It's the money exchange houses that send the money, and they've forged the documents. We don't do transfers abroad."
Mr Hijazi did admit to using numbers instead of names for his clients, effectively hiding their identities, but he said that was merely to make his paperwork easier.
The BBC examined a number of the transfer documents and saw large amounts of money, around $10m, moving to Lebanon in the space of a year.
Three transfers, for $100,000, $70,000, and $42,200, went in the space of two days to companies in Beirut which did not appear to exist.
Adolfo Marin, the original prosecutor in the case, said it was very difficult to investigate the money transfers because the banks in Beirut were dominated by Hezbollah.
"I have no idea what they can export to us from Lebanon, so necessarily the money that goes to Lebanon is not for imports," he said. "So it is possible to formulate a hypothesis about the probability of money laundering and links with terrorism."
Kassem Hijazi strongly denied any involvement in terrorist financing. "It's absurd," he said.
"It doesn't happen here. The people I work with are friends, not terrorists. They've been investigated and if there was some evidence they would have been charged."
'Helping our brothers'
This view was supported by Sheik Taleb Jomha, the Muslim leader of the 30,000-strong Lebanese community in the tri-border area.
"I am not telling you a secret when I say that Iran and Syria are supporting Hezbollah," he said.
"Iran has the ability to send weapons and rockets, not us. They say money is moving from here to the Middle East. That's right. But not to help political or military groups, but to help our brothers and sisters who need help."
Kassem Hijazi is not facing charges of money laundering or even terrorist financing.
In Paraguay, funding terrorism is not a crime, and the law on money laundering is out of date, making it difficult to achieve a prosecution.
A new law has been languishing, unapproved, in the country's Congress for more than two years.
In the meantime, Mr Hijazi has been accused of tax evasion, which he also denies, and is expected to face trial in 2007.
on Sunday, December 10, 2006
By Jeannine Aversa
The Associated Press
Article Last Updated:12/07/2006 12:11:53 AM MST
Washington - The Bush administration took action Wednesday aimed at choking off a major fundraising channel for Hezbollah operating in the tri-border area of Argentina, Brazil and Paraguay.
The Treasury Department's action covers nine people and two entities - a shopping center in Paraguay and an electronics company, Casa Hamze, located in the shopping center.
As a result, Americans are forbidden from doing business with them, and any bank accounts or other financial assets belonging to the designated people and entities found in the United States must be frozen.
In a joint statement, Argentina, Brazil and Paraguay said that "the information presented by the United States does not provide any new elements that would permit it to affirm the existence of terrorist activities in the region, including the financing of terrorism."
The statement added that "no operative terrorist activities were detected in the Triple Border region."
The department alleges that those designated have provided financial and logistical support to the Islamic militant group Hezbollah, which the United States considers a terrorist organization. The Lebanon-based Hezbollah is suspected of involvement in terrorist attacks worldwide.
The U.S. also blames Hezbollah for triggering bloodshed in the Middle East involving Lebanon, Israel and the terrorist group during the summer and more recently stirring political unrest in Lebanon.
Specifically, the department alleges that the designated people gave financial and other assistance to Assad Ahmad Barakat, whom the government several years ago added to its asset-blocking list for his support of Hezbollah.
"Assad Ahmad Barakat's network in the tri-border area is a major financial artery to Hezbollah in Lebanon," said Adam Szubin, director of the Treasury Department's Office of Foreign Assets Control.
The Treasury Department alleged that Muhammad Yusif Abdallah is a senior Hezbollah leader in the tri-border area and an important financial backer of the terror group.
It says Abdallah is an owner and manager of the Galeria Page shopping center located in Paraguay, which the department also designated on Wednesday.
The department alleged that Abdallah pays a percentage of his income to Hezbollah based on the profits he receives from the shopping center. It alleges that Abdallah has been involved in importing contraband electronics, falsifying passports, credit-card fraud and trafficking counterfeit U.S. dollars.
Hamzi Ahmad Barakat also was designated, with the government alleging that he is a Hezbollah member in the tri-border area and has served as a source of funding for the terror group through his electronics store, Casa Hamze. He also is suspected of trafficking in narcotics, counterfeit U.S. dollars, arms and explosives, the government said.
Hatim Ahmad Barakat, who has traveled to Chile to collect money for Hezbollah and is the brother of Assad Ahmad Barakat, also was named.
The tri-border region is considered a haven for arms traffickers, smugglers and counterfeiters and is home is thousands of Lebanese Muslims. It was once described by the U.S. State Department as a "focal point for Islamic extremism in Latin America."
http://www.denverpost.com/headlines/ci_4792568
The Associated Press
Article Last Updated:12/07/2006 12:11:53 AM MST
Washington - The Bush administration took action Wednesday aimed at choking off a major fundraising channel for Hezbollah operating in the tri-border area of Argentina, Brazil and Paraguay.
The Treasury Department's action covers nine people and two entities - a shopping center in Paraguay and an electronics company, Casa Hamze, located in the shopping center.
As a result, Americans are forbidden from doing business with them, and any bank accounts or other financial assets belonging to the designated people and entities found in the United States must be frozen.
In a joint statement, Argentina, Brazil and Paraguay said that "the information presented by the United States does not provide any new elements that would permit it to affirm the existence of terrorist activities in the region, including the financing of terrorism."
The statement added that "no operative terrorist activities were detected in the Triple Border region."
The department alleges that those designated have provided financial and logistical support to the Islamic militant group Hezbollah, which the United States considers a terrorist organization. The Lebanon-based Hezbollah is suspected of involvement in terrorist attacks worldwide.
The U.S. also blames Hezbollah for triggering bloodshed in the Middle East involving Lebanon, Israel and the terrorist group during the summer and more recently stirring political unrest in Lebanon.
Specifically, the department alleges that the designated people gave financial and other assistance to Assad Ahmad Barakat, whom the government several years ago added to its asset-blocking list for his support of Hezbollah.
"Assad Ahmad Barakat's network in the tri-border area is a major financial artery to Hezbollah in Lebanon," said Adam Szubin, director of the Treasury Department's Office of Foreign Assets Control.
The Treasury Department alleged that Muhammad Yusif Abdallah is a senior Hezbollah leader in the tri-border area and an important financial backer of the terror group.
It says Abdallah is an owner and manager of the Galeria Page shopping center located in Paraguay, which the department also designated on Wednesday.
The department alleged that Abdallah pays a percentage of his income to Hezbollah based on the profits he receives from the shopping center. It alleges that Abdallah has been involved in importing contraband electronics, falsifying passports, credit-card fraud and trafficking counterfeit U.S. dollars.
Hamzi Ahmad Barakat also was designated, with the government alleging that he is a Hezbollah member in the tri-border area and has served as a source of funding for the terror group through his electronics store, Casa Hamze. He also is suspected of trafficking in narcotics, counterfeit U.S. dollars, arms and explosives, the government said.
Hatim Ahmad Barakat, who has traveled to Chile to collect money for Hezbollah and is the brother of Assad Ahmad Barakat, also was named.
The tri-border region is considered a haven for arms traffickers, smugglers and counterfeiters and is home is thousands of Lebanese Muslims. It was once described by the U.S. State Department as a "focal point for Islamic extremism in Latin America."
http://www.denverpost.com/headlines/ci_4792568
The Associated Press
Friday, December 8, 2006
RIO DE JANEIRO, Brazil
Brazil has rejected U.S. sanctions against alleged terrorist fundraisers in the tri-border area with Argentina and Paraguay, saying American officials failed to present sufficient evidence.
The Foreign Ministry announcement late Thursday indicated that the three South American governments are unwilling to place complete trust in U.S. assertions about the war on terror.
The administration of U.S. President George W. Bush on Wednesday imposed sanctions on what it termed a major fundraising channel for the Islamic militant group Hezbollah in the tri-border area, focusing on nine people plus a shopping center in Paraguay and an electronics company located there.
The U.S. Treasury Department barred Americans from doing business with them and said any bank accounts or other financial assets belonging to the nine people and the businesses found in the United States must be frozen.
But Brazil said the three countries met in Buenos Aires this week and decided there was not "any new data or evidence that corroborates the accusation by the United States."
It also said the United States had failed to prove oft-repeated suggestions that the region itself is a hotbed of terrorist financing.
"In light of the information available, there is no sign of the occurrence in that region of activities linked to terrorism or their financing," the Foreign Ministry statement said. "That position is shared by Argentina and Paraguay."
The ministry said that "unilateral statements that arbitrarily single out the tri-border region cause undue harm to the region," but it reiterated Brazil's "international commitment ... for the prevention and combat of terrorism."
The tri-border region is considered a haven for arms traffickers, smugglers and counterfeiters and is home is thousands of Lebanese Muslims. The United States considers the Lebanon-based Hezbollah a terrorist organization and the group is suspected of involvement in terrorist attacks worldwide.
At least some local analysts praised Brazil's action.
"It's a question of national sovereignty," said Alexandre Barros, a political analyst with the Early Warning consulting firm in Brasilia. "The United States says it's all rotten here, but Brazil has no international obligations unless they are proven and discussed. They say, 'We're going to clamp down,' but that's unacceptable. Brazil doesn't have to accept"
Barros said Brazil had been cooperative in opposing international terrorism, "but the problem has to be concrete."
The U.S. alleges that it had identified people who had given financial and other assistance to Assad Ahmad Barakat, whose "network in the tri-border area is a major financial artery to Hezbollah in Lebanon," said Adam Szubin, director of the Treasury Department's Office of Foreign Assets Control.
The Treasury Department alleged that Muhammad Yusif Abdallah, allegedly an owner of the Galeria Page shopping center in Paraguay, is a senior Hezbollah leader who pays a percentage of his income to the group.
It also said that Hamzi Ahmad Barakat funded Hezbollah through his electronics store, Casa Hamze, located in the shopping center.
The U.S. government said regional law enforcement authorities have been concerned about their activities and the U.S. move should come as no surprise.
"The U.S. government stands firmly behind our designation of these nine individuals as terrorist financiers for Hezbollah," Molly Millerwise, the department's public affairs director, said in an e-mail on Friday to The Associated Press.
"It is important for countries around the world to recognize that their obligation to fight terrorism extends beyond simply preventing attacks within their own borders and includes halting the export of funds that facilitate terrorism elsewhere," she said.
http://www.iht.com/articles/ap/2006/12/08/america/LA_GEN_Brazil_U.S._Terror.php
Friday, December 8, 2006
RIO DE JANEIRO, Brazil
Brazil has rejected U.S. sanctions against alleged terrorist fundraisers in the tri-border area with Argentina and Paraguay, saying American officials failed to present sufficient evidence.
The Foreign Ministry announcement late Thursday indicated that the three South American governments are unwilling to place complete trust in U.S. assertions about the war on terror.
The administration of U.S. President George W. Bush on Wednesday imposed sanctions on what it termed a major fundraising channel for the Islamic militant group Hezbollah in the tri-border area, focusing on nine people plus a shopping center in Paraguay and an electronics company located there.
The U.S. Treasury Department barred Americans from doing business with them and said any bank accounts or other financial assets belonging to the nine people and the businesses found in the United States must be frozen.
But Brazil said the three countries met in Buenos Aires this week and decided there was not "any new data or evidence that corroborates the accusation by the United States."
It also said the United States had failed to prove oft-repeated suggestions that the region itself is a hotbed of terrorist financing.
"In light of the information available, there is no sign of the occurrence in that region of activities linked to terrorism or their financing," the Foreign Ministry statement said. "That position is shared by Argentina and Paraguay."
The ministry said that "unilateral statements that arbitrarily single out the tri-border region cause undue harm to the region," but it reiterated Brazil's "international commitment ... for the prevention and combat of terrorism."
The tri-border region is considered a haven for arms traffickers, smugglers and counterfeiters and is home is thousands of Lebanese Muslims. The United States considers the Lebanon-based Hezbollah a terrorist organization and the group is suspected of involvement in terrorist attacks worldwide.
At least some local analysts praised Brazil's action.
"It's a question of national sovereignty," said Alexandre Barros, a political analyst with the Early Warning consulting firm in Brasilia. "The United States says it's all rotten here, but Brazil has no international obligations unless they are proven and discussed. They say, 'We're going to clamp down,' but that's unacceptable. Brazil doesn't have to accept"
Barros said Brazil had been cooperative in opposing international terrorism, "but the problem has to be concrete."
The U.S. alleges that it had identified people who had given financial and other assistance to Assad Ahmad Barakat, whose "network in the tri-border area is a major financial artery to Hezbollah in Lebanon," said Adam Szubin, director of the Treasury Department's Office of Foreign Assets Control.
The Treasury Department alleged that Muhammad Yusif Abdallah, allegedly an owner of the Galeria Page shopping center in Paraguay, is a senior Hezbollah leader who pays a percentage of his income to the group.
It also said that Hamzi Ahmad Barakat funded Hezbollah through his electronics store, Casa Hamze, located in the shopping center.
The U.S. government said regional law enforcement authorities have been concerned about their activities and the U.S. move should come as no surprise.
"The U.S. government stands firmly behind our designation of these nine individuals as terrorist financiers for Hezbollah," Molly Millerwise, the department's public affairs director, said in an e-mail on Friday to The Associated Press.
"It is important for countries around the world to recognize that their obligation to fight terrorism extends beyond simply preventing attacks within their own borders and includes halting the export of funds that facilitate terrorism elsewhere," she said.
http://www.iht.com/articles/ap/2006/12/08/america/LA_GEN_Brazil_U.S._Terror.php
The governments of Argentina, Brazil and Paraguay on Thursday rejected accusation made by a U.S. report that the so-called "triple frontier" where the three nations meet is a haven for terrorists.
The joint statement said that the U.S. document had presented no new evidence for their repeated claim that terrorism and terrorist financing operated in the region.
The statement was issued at the end of the three-day fifth Plenary Meeting of the 3+1 Mechanism on Triple Frontier Security held in Buenos Aires.
The final statement was a reply to the United States, which was an observer at the meeting and has recently published a report saying that the "triple frontier" is home to a network charged with collecting funds and staff for Lebanon's Hezbollah guerilla.
The U.S. authorities on Wednesday froze the U.S. assets of nine people and two businesses in the border area, accusing them of transferring millions of dollars to Hezbollah, which engaged in a fierce fighting with Israel this summer. Washington labeled the organization as a terrorist group.
Source: Xinhua
http://english.people.com.cn/200612/08/eng20061208_330089.html
The joint statement said that the U.S. document had presented no new evidence for their repeated claim that terrorism and terrorist financing operated in the region.
The statement was issued at the end of the three-day fifth Plenary Meeting of the 3+1 Mechanism on Triple Frontier Security held in Buenos Aires.
The final statement was a reply to the United States, which was an observer at the meeting and has recently published a report saying that the "triple frontier" is home to a network charged with collecting funds and staff for Lebanon's Hezbollah guerilla.
The U.S. authorities on Wednesday froze the U.S. assets of nine people and two businesses in the border area, accusing them of transferring millions of dollars to Hezbollah, which engaged in a fierce fighting with Israel this summer. Washington labeled the organization as a terrorist group.
Source: Xinhua
http://english.people.com.cn/200612/08/eng20061208_330089.html
Friday December 8, 2006
WASHINGTON - The United States froze the US assets of nine people and two businesses in the border area of Brazil, Argentina and Paraguay who Washington said helped funnel millions of dollars to Hizbollah.
The US Government considers the Shiite Muslim militia a terrorist organisation.
The Treasury said the people and businesses raised and transferred cash for Hizbollah through the triple border area between the South American countries, which is home to a large Arab community.
An executive order froze their US assets and banned transactions with US citizens and banks.
"Millions of dollars have been raised and moved by this network," Treasury assistant secretary for terrorist financing Pat O'Brien said. "One of the key ways money has moved is through personal couriers."
- REUTERS
http://www.nzherald.co.nz/category/story.cfm?c_id=340&objectid=10414395
WASHINGTON - The United States froze the US assets of nine people and two businesses in the border area of Brazil, Argentina and Paraguay who Washington said helped funnel millions of dollars to Hizbollah.
The US Government considers the Shiite Muslim militia a terrorist organisation.
The Treasury said the people and businesses raised and transferred cash for Hizbollah through the triple border area between the South American countries, which is home to a large Arab community.
An executive order froze their US assets and banned transactions with US citizens and banks.
"Millions of dollars have been raised and moved by this network," Treasury assistant secretary for terrorist financing Pat O'Brien said. "One of the key ways money has moved is through personal couriers."
- REUTERS
http://www.nzherald.co.nz/category/story.cfm?c_id=340&objectid=10414395
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