Cocaine trade exacerbates money laundering in West Africa – UN Chief

The global cocaine trade, which is estimated at $85 million, is exacerbating money laundering in West Africa, Mr. Ban Ki Moon, United Nations Secretary-General has indicated.

Whiles every $1 billion of pure cocaine trafficked through West Africa earns more than ten times as much when sold on the streets of Europe, the trade is also fuelling political instability threatens the sub-region’s security, Mr Ban said.

In addition, the 61 billion dollars annual markets for Afghan opiates are used in funding insurgency, international terrorism and wider destabilization.

These were contained in a message read on behalf of the UN Chief at a ceremony held on Tuesday at Wa in the Upper West Region to mark this year’s international day against drug abuse and illicit trafficking.

Mr Ban said because the threat was so urgent, the UN had established a task force to develop a system-wide strategy to coordinate and strengthen the responses to illicit drugs and organized crime by building them into all UN peacekeeping, peace building, security development and disarmament activities.

In that way, the UN could integrate the fight against drug trafficking and other forms of organized crime into the global security and development agenda, he explained.

He said this year’s international day against drug abuse and illicit trafficking was an opportunity to highlight the importance of addressing the threats through the rule of law in the provision of health service.

“Drugs use at its core is a health issue while drug dependence is a disease and not a crime. The real criminals are the drug traffickers.

“But the supply is only half of the equation and unless we reduce the demand for illicit drugs we can never fully tackle cultivation, production or trafficking”, Mr Ban said.

In a speech read on his behalf, Naval Captain Rtd Asase Gyimah, Board Chairman of Narcotics Control Board said the Board was collaborating more with other agencies for drug law enforcement and advocated the reduction of the drug trade by exchanging ideas and sharing intelligence.

Alhaji Issahaque Salia, Upper West Regional Minister said the government was more determined now than ever to put drug traffickers and users out of business, while at the same time reducing drug related crimes.

Government was also committed to resourcing not only the Narcotic Control Board but also all security agencies to fight the drug menace.

Source: GNA

Publication: Illicit money: how much is out there?

Criminals, especially drug traffickers, may have laundered around $1.6 trillion, or 2.7 per cent of global GDP, in 2009, according to a new report by UNODC. This figure is consistent with the 2 to 5 per cent range previously established by the International Monetary Fund to estimate the scale of money-laundering.

Less than 1 per cent of global illicit financial flows is currently being seized and frozen, according to the report Estimating illicit financial flows resulting from drug trafficking and other transnational organized crime. "Tracking the flows of illicit funds generated by drug trafficking and organized crime and analysing how they are laundered through the world's financial systems remain daunting tasks," acknowledged Yury Fedotov, Executive Director of UNODC.

Launching the report in Marrakech, Morocco, during the fourth session of the Conference of the States Parties to the United Nations Convention on Corruption, Mr. Fedotov said that the Conference served as an apt reminder that corruption could play a major role in facilitating the entry of illicit funds into legitimate global financial flows, adding that investments of "dirty money" could distort the economy and hamper investment and economic growth. The aim of the study is to shed light on the total amounts probably laundered across the globe and to advance research on the topic. "But as with all such reports, we will continue to refine the figures to provide the truest possible estimates," said Mr. Fedotov.

The UNODC report estimates that the total amount of criminal proceeds generated in 2009, excluding those derived from tax evasion, may have been approximately $2.1 trillion, or 3.6 per cent of GDP in that year (2.3 to 5.5 per cent). Of that total, the proceeds of transnational organized crime - such as drug trafficking, counterfeiting, human trafficking and small arms smuggling - may have amounted to 1.5 per cent of global GDP, and 70 per cent of those proceeds are likely to have been laundered through the financial system.

The illicit drug trade - accounting for half of all proceeds of transnational organized crime and a fifth of all crime proceeds - is the most profitable sector. The study paid particular attention to the market for cocaine, probably the most lucrative illicit drug trafficked across borders. Traffickers' gross profits from the cocaine trade stood at around $84 billion in 2009. While Andean coca bush farmers earned about $1 billion, the bulk of the income generated from cocaine was concentrated in North America ($35 billion), followed by West and Central Europe ($26 billion). Approximately two-thirds of that total may have been laundered in 2009. The findings suggest that most profits from the cocaine trade are laundered in North America and in Europe, whereas illicit income from other subregions is probably laundered in the Caribbean.

Once illegal money has entered the global and financial markets, it becomes much harder to trace its origins, and the laundering of ill-gotten gains may perpetuate a cycle of crime and drug trafficking. "UNODC's challenge is to work within the United Nations system and with Member States to help to build the capacity to track and prevent money-laundering, strengthen the rule of law and prevent these funds from creating further suffering," said Mr. Fedotov.

Source: UNODC

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U.S. Rules Bar Banks That Violate Iran Sanctions

The Treasury Department released new regulations on Friday that could bar foreign banks or companies from accessing the financial system in the United States if they did business with entities or people subject to United Nations and United States sanctions.

The regulations, which grew out of legislation Congress passed in June, effectively bar foreign banks from doing business in dollars if they engage in transactions with anyone suspected of involvement in Iran’s nuclear or missile programs. The entities include Iran’s Revolutionary Guards.

The regulations were released just months after the passage of new sanctions on Iran by the United Nations Security Council and the European Union. The European Union sanctions include additional measures aimed at Iranian banks and insurance companies and the Iranian transport sector. Administration officials have said they believe that the sanctions have already started to have an effect.

The Treasury regulations prohibit or impose strict conditions on the use of American bank accounts by any institution that engages in activities associated with Iran’s nuclear and missile programs.

Those activities include aiding the Iranian government’s efforts to obtain weapons of mass destruction or to support terrorism, aiding the activities of people already subject to United Nations sanctions and providing any financial assistance to Iran’s Revolutionary Guards or their affiliates. A final provision is aimed at banks or companies that engage in money laundering or assist any Iranian financial institution — including the Central Bank of Iran — in the activities cited.

Earlier sanctions focused on some of those activities, but violators were subject mostly to fines. The threat of being cut off from the United States economy adds a significant dimension, said Stuart A. Levey, the under secretary of the Treasury for terrorism and financial intelligence, in a briefing for reporters on the regulations.

Mr. Levey planned to leave Friday on a trip to the United Arab Emirates, Lebanon and other Middle Eastern countries to explain the regulations to officials of government and financial institutions.

“It would not be in our interest to act without warning,” he said. “We’re more interested in changing behavior than in ‘getting’ somebody.”

by: By ROBERT F. WORTH

Source: The NY Times

Drugs money 'saved the banks from collapse' during global crisis

Drugs money saved some banks from collapse at the height of the global crisis the United Nations' drugs and crime chief claimed today.

Antonio Maria Costa, head of the UN Office on Drugs and Crime, told the Observer that there were signs that some banks were rescued by billions of dollars that 'originated from the drugs trade and other illegal activities.'

Speaking from his office in Vienna, Costa explained that in the second half of 2008, lending was the banking system's main problem.

'The system was basically paralysed because of the unwillingness of banks to lend money to one another,' he told the newspaper.

He said he had seen evidence that the proceeds of organised crime were the 'only liquid investment capital' available to some banks on the verge of collapse last year.

Costa said that as a result, a majority of the $352bn (£216bn) of drugs profits was absorbed into the economics system, effectively laundering it.

The UNs' drugs and crime chief said that he was first made aware of evidence that illegal money was being absorbed into the financial system around 18 months ago, although he would not name countries or banks that may have received drugs money.

A British Bankers' Association spokesman told the newspaper: 'We have not been party to any regulatory dialogue that would support a theory of this kind.

'There was a clear lack of liquidity in the system and to a large degree this was filled by the intervention of central banks.'

Costa's claim comes as police launch a new anti-drugs campaign that aims to appeal environmentally-minded cocaine users with the message that snorting cocaine destroys the rainforest.

The campaign warns that for every gram of cocaine made, four square metres of rainforest are destroyed.

The campaign, headed by the police and Greenpeace, comes amid evidence that cocaine use is on the increase among young people in the UK.

It has been suggested that lower prices have contributed to the prevalence of the drug

Source: Daily Mail

Why the Iran Sanctions Matter

It's easy to criticize the U.N. Security Council's new resolution targeting Iran. But it might prove a surprisingly effective tool in tightening the noose on the regime in Tehran.

Wednesday's U.N. Security Council resolution sanctioning Iran marks a critical turning point in the U.S.-led efforts to target Iran's illicit activities. The resolution focuses on Iran's nuclear-weapons and ballistic-missile programs; the Islamic Revolutionary Guard Corps (IRGC), which is responsible for these programs as well as the regime's support for terrorism; and the Islamic Republic of Iran Shipping Lines (IRISL), which has been directly involved in proliferation shipments. The sanctions included in this resolution are, as U.S. Ambassador to the U.N. Susan Rice put it, "as tough as they are smart and precise." If anything, this new resolution is both too precise and purposefully vague. And therein lies its strength.

The list of 40 entities and one individual listed in the resolution's three annexes is extremely targeted. Employing such "smart sanctions" -- pinpointing the specific entities and persons involved in Iran's illicit conduct and holding them accountable while shielding the general Iranian public from old-fashioned, shotgun, regime-wide sanctions -- has been very effective. This tactic denies Iran's revolutionary regime the chance to deflect blame for the country's economic woes, while disrupting its ability to finance and transport material necessary for its nuclear-weapons and ballistic-missile programs. But the number of entities excluded from the resolution is even more telling than the list of those that made the final cut. Most entities designated this week, for example, had already been designated by the U.S. Treasury Department and/or the European Union. They have therefore already been subject to most of the impacts a U.N. resolution would hope to achieve, such as economic isolation by major financial institutions.

Consider Iran's shipping line, IRISL. The U.S. government first designated IRISL in September 2008 for facilitating the transport of cargo for U.N.-designated proliferators and falsifying documents and using deceptive schemes to shroud its involvement in illicit commerce. And, as the State Department noted at the time of the designation, IRISL had already been "called out by the U.N. Security Council as a company that has engaged in proliferation shipments."

But following up on U.S. and EU designations of entities like IRISL or the IRGC-controlled Khatam al-Anbiya construction company (also called Ghorb) by designating them at the United Nations as well is vitally important to the global sanctions regime. With critical countries such as China, Malaysia, Singapore, and others willing to do only the minimum to comply with Security Council resolutions, getting critical entities like IRISL and IRGC companies designated at the U.N. means wider implementation of sanctions.

Unfortunately, multilateral action is not only difficult to achieve, but can often lead to lowest-common-denominator decision-making. So while international consensus was being built for robust action at the U.N., Britain, the European Union, the United States, and others wisely pursued both unilateral and bilateral financial measures focused on IRISL, IRGC-affiliated entities, and other individuals and institutions facilitating Iran's illicit conduct. With the increased militarization of the Iranian regime and the blatant abuses of the IRGC-affiliated Basij militia, targeting entities affiliated with the Revolutionary Guard unilaterally while international consensus was being built to do so at the U.N. level was an effective strategy. That does mean, however, that this week's list of sanctioned entities is more of a reinforcement of prior actions than completely new ones.

And that's OK. Because though the lists of sanctioned entities are very precise, U.S. and other negotiators made sure that general "hooks" upon which additional actions could be "hung" were peppered throughout the body of the resolution. These will provide the United States and other states and multilateral bodies with the international imprimatur for further action. Put another way, the new resolution is most important not for the specific entities listed in its annexes, but for providing a foundation upon which further efforts to disrupt Iran's illicit activities can be built.

Note, for example, the multiple times the resolution "calls upon all States" to do things above and beyond checking the list of specifically sanctioned entities and persons, such as the call to "exercise vigilance" over transactions involving the IRGC that could contribute to "proliferation-sensitive nuclear activities or the development of nuclear weapon delivery systems." In plain English, this language effectively empowers states and other international bodies to take still more stringent action against the IRGC.

Broadening its sanctions against Iran's shipping company, the resolution "calls upon all States" to inspect "all cargo to and from Iran, in their territory, including seaports and airports, if the State concerned has information that provides reasonable grounds to believe the cargo contains items the supply, sale, transfer, or export of which is prohibited" by this or prior Security Council resolutions. The contrast between the specificity of the list of sanctioned entities and the fairly low standard of "reasonable grounds to believe" is a telling example of purposeful vagueness that could prove powerful in the hands of states inclined to get tough on Tehran.

Similarly, the resolution "requests" that all member states report to the U.N. "any information available" on "transfers or activity by Iran Air's cargo division or vessels owned or operated by [IRISL] to other companies" that might be related to sanctions evasion. The resolution "calls upon" states to "take appropriate measures" -- which, again, by virtue of being appropriately vague is appropriately empowering -- both to prohibit Iranian banks from opening branches, subsidiaries, representative offices, joint ventures, or correspondent relationships with banks in their jurisdiction and to prohibit financial institutions in their territories or under their jurisdiction from opening offices or accounts in Iran.

Indeed, the resolution specifically "welcom[es]" the guidance issued by the Financial Action Task Force (FATF) -- the multilateral technocratic body that sets international standards to combat money laundering and terrorism finance -- to assist states in implementing their financial obligations under two previous resolutions, 1737 (2006) and 1803 (2008). In particular, it highlights the FATF's warning to "exercise vigilance over transactions involving Iranian banks, including the Central Bank of Iran, so as to prevent such transactions contributing to proliferation-sensitive nuclear activities, or to the development of nuclear weapon delivery systems." So though the Central Bank of Iran is not specifically sanctioned, it is, broadly speaking, open game.

In February, the FATF named Iran to its new blacklist, recognizing that in support of its weapons programs, its crackdown on democracy, and its terrorist proxies, Tehran has continued to engage in deceptive financial conduct aimed at raising, moving, hiding, and accessing funds internationally. In line with the G-20's call to protect the international financial system from abuse, the blacklist identified countries with deficient "anti-money laundering and combating the financing of terrorism" (AML/CFT) measures. Iran received special designation on the blacklist; it was the only country whose illicit financial conduct merited a call for international countermeasures.

Contrary to conventional wisdom, Iran is highly sensitive to such actions. After one of the FATF's warnings, for example, Iran sent a delegation to lobby the agency despite not being a member. The FATF, however, dismissed Iran's claims that legislative changes had fixed its financial shortcomings, calling the new measures "skimpy" and noting their "big deficiencies." Indeed, the FATF blacklisted Iran even as it recognized the regime's "recent steps" to engage with the agency. The message seemed to be that the FATF would not mistake public engagement for substantive progress. Similarly, though Iran requested technical help from the U.N. Office on Drugs and Crime to set up a computer-based training center for its nascent financial intelligence unit, the FATF still highlighted the regime's "failure to meaningfully address the ongoing and substantial deficiencies" in its AML/CFT efforts.

The result is a sharp increase in the cost of doing business for the Iranian regime. European multinational companies are terminating business relationships with Iran, following the lead of major international banks in tightening the noose on Iran's financial system. Chinese and Malaysian companies may lap up available contracts, but many key technologies Iran needs for its oil and gas industries and for its nuclear and missile programs are only available in the West.

And now, for a change, existing sanctions might finally be seriously enforced. Just as important as the specific list of sanctioned entities and the broad invitations to take further action against Iran is the resolution's creation of a monitoring committee, including a panel of experts, to better enforce existing sanctions. Indeed, expert panels proved effective in strengthening sanctions on Sudan and Ethiopia. The "naming and shaming" power of the panel's findings could further influence firms and individuals considering whether to run the risk of doing business with Iran. Furthermore, an expert panel could also help the Sanctions Committee and U.N. member states by recommending ways to make the sanctions more effective. Such a monitoring committee would be particularly effective if it included among its experts individuals knowledgeable about export control and dual-use goods.

But implementation and follow-up is everything in the sanctions business. For the new resolution to make a difference, three things must happen.

First, states like Britain and the United States, regional bodies like the EU, and multilateral bodies like the FATF and G-20 must all act on the resolution's various "calls" to expand the resolution beyond the list of specifically sanctioned entities.

Secondly, the monitoring committee must demand substantive reports from member states upon which it can submit public reports with substantive recommendations for enhancing enforcement of existing sanctions.

Finally, unless the report finds that Iran has become fully compliant with its obligations, the Security Council must quickly follow up on the report with another round of sanctions. The resolution requests that the director general of the International Atomic Energy Agency submit a report to the Security Council within 90 days on whether Iran has established "full and sustained suspension" of its illicit nuclear activities. If the international community does not respond in a timely fashion, the entire premise of targeted and graduated sanctions -- the credibility of which are premised on consequences for ongoing illicit conduct -- will be irreparably damaged. One reason Iran has not been deterred by the sanctions put in place to date is that the deadlines of prior resolutions came and went with no timely follow-up. This delay undermined the whole sanctions enterprise, leaving Iran with the general sense it could survive sanctions, get by, and outlast the resolve of the international community. June 9's resolution offers an opportunity to reverse that trend and re-empower sanctions as an effective tool of foreign policy, one that doesn't require the use of force.

On their own, these sanctions will not solve the crisis over Iran's nuclear program. But wisely implemented and enforced, they could prove critical in preventing Iran from getting the bomb. And that's a very good thing.

Source: Foreign Policy

The New UN Sanctions Resolution Against Iran

The UN Security Council approved a resolution on June 9th imposing a fourth round of sanctions on Iran in response to its continued nuclear enrichment program in violation of prior Security Council resolutions. The vote was 12 in favor, 2 against (Brazil and Turkey) and 1 abstention (Lebanon).

The new resolution imposes new financial restrictions on Iran, expands an existing arms embargo, and authorizes greater stop and search of Iranian cargo ships. Targeted sanctions on specific individuals and entities were expanded. The resolution also includes measures directed against Iran’s Revolutionary Guard.

While the United States, Great Britain and France were its strongest sponsors, China and Russia also expressed their verbal support along with their votes, although the Russian ambassador added a major caveat in his response to a reporter’s question about Russia’s prospective sale of a sophisticated anti-aircraft system to Iran.

Lebanon’s decision to abstain was a pleasant surprise, considering the influence of Iran-backed Hezbollah in the Lebanese government. However, Brazil and Turkey as expected opposed the new resolution on the grounds that it could undermine the proposed nuclear fuel swap agreed by the two countries with Iran last month. They seemed to forget that the European Union has been trying to negotiate with Iran since 2005 and the Obama administration waited 18 months while trying to engage Iran before seeking passage of this resolution. Only when new sanctions became a real possibility did Iran come around to the fuel swap concept that it had first agreed upon and then promptly reneged on last fall.

Rice’s Positive Spin

U.S. Ambassador Susan Rice told reporters after the vote that the “resolution is strong, it’s tough and it’s comprehensive. And it is something that Iran fought very hard to prevent passage today. The effort, the time, the money, and the poise that they employed, to try to prevent this resolution’s passage only underscores their understanding, that this is a major blow.”

Despite the ineffectiveness of the three prior resolutions, Ambassador Rice expressed confidence that the cumulative effect on Iran of all the resolutions is “harmful and hurtful.”

Iran’s Rebuke

Iran remains unbowed. Its representative told the Security Council after the vote that it had no intention of changing its present course. He accused the United States and Great Britain in particular of continuing a long pattern of interference in Iran’s affairs and displaying a double standard vis a vis Israel. Ambassador Rice told reporters that these comments were “reprehensible, offensive, and inaccurate.”

Stronger Resolution on Paper

On paper at least, the new resolution does appear to represent a significant move forward from the prior three. More specifically, the resolution prohibits Iran from investing in sensitive nuclear activities abroad, like uranium enrichment and reprocessing activities, as well as activities involving ballistic missiles capable of delivering nuclear weapons. The ban also applies to investment in uranium mining.

States are prohibited from selling or in any way transferring to Iran various categories of heavy weapons (battle tanks, armored combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, and certain missiles or missile systems). States are similarly prohibited from providing technical or financial assistance for such systems, or spare parts.

The resolution also sets up a new cargo inspection framework. States are expected to inspect any vessel on their territory suspected of carrying prohibited cargo, including banned conventional arms or sensitive nuclear or missile items. States are also expected to cooperate in such inspections on the high seas.

States are called upon to prevent any financial service and freeze any asset that could contribute to Iran’s proliferation.

Resolution targets the Islamic Revolutionary Guard Corps

Most significantly, the resolution targets the Islamic Revolutionary Guard Corps (IRGC) for its role in proliferation and requires states to mandate that businesses exercise vigilance over all transactions involving the IRGC. Fifteen IRGC-related companies linked to proliferation will have their assets frozen. The IRGC is the major power center in Iran’s economic and military spheres as well as one of the government’s primary instruments for suppressing political dissent. Impairing the IRGC’s freedom of operations will be a significant accomplishment, if successful.

The Proof Will be in Enforcement

UN Security Council sanctions resolutions against Iraq, North Korea and Iran have had a bad track record in actual practice. The resolutions have been easy for the sanctioned countries to evade, through the use of multiple front entities, money laundering and trading partners unwilling to give up short term advantage for longer term peace and security.

Also, enforcement of the cargo inspection at sea will be a challenge if Iran, as expected, refuses to cooperate. When the French UN ambassador, for example, was asked what measures France would be willing to take in such a scenario, he refused to answer what he called a “hypothetical question.”

Most ominously, the Russian UN ambassador told reporters that Russia did not consider the sale of its sophisticated S-300 anti-aircraft system to Iran to be within the resolution’s scope. The S-300 missile defense system would no doubt be used by Iran to shield its nuclear sites against a potential air strike, should military force become necessary to stop Iran from producing nuclear bombs. The Russian ambassador is technically correct because the resolution’s ban on the transfer to Iran of certain missile systems is written in such a way that it creates a big loophole for Russia to walk through in delivering to Iran its ground-to-air missiles, including its S-300 anti-aircraft missiles and anti-missile interceptors.

The Obama administration will spin the latest sanctions resolution against Iran as a major diplomatic triumph and a significant obstacle in the way of Iran’s progress towards achieving a nuclear arms capability. I hope they are right. However, until the S-300 loophole is closed; until the U.S. and its allies figure out a way to effectively stop evasions of the sanctions; and until enough countries show that they are willing to enforce the cargo inspections, the Obama administration might want to wait before it celebrates.

Source: Canada Free Press

Cyprus’ anti-terror infrastructure ‘weak’ says US

The buffer zone separating the island’s divided communities is vulnerable to penetration by terrorist groups, a United States government report said.

“The largely porous, lightly-patrolled “green line” separating the two sides is routinely exploited for trafficking people, narcotics, and other illicit goods, and is vulnerable to penetration by terrorist groups,” the State Department 2009 Country Reports on Terrorism said.

“This de facto division has precluded counterterrorism cooperation between the two communities’ law enforcement authorities, and between Cyprus and Turkey.”

The report said the regular ferry service between Latakia, Syria and Famagusta, in the Turkish-occupied north, has facilitated increased illegal migration into Cyprus and the wider EU.

Cyprus continued to be an ally of the US in its fight against terrorism and the government was responsive to efforts to block and freeze terrorist assets, the State Department.

In January, Cypriot authorities detained the Cypriot-flagged MV Monchegorsk which was chartered by the Islamic Republic of Iran Shipping Lines and contained Iranian-origin weapons components allegedly headed for Hezbollah in Lebanon.

The components were confiscated by Cypriot customs officials after the Government of Cyprus determined the shipment was in violation of United Nations Security Council resolutions.

Cyprus also “continued to allow blanket overflight and landing rights to US military aircraft supporting operations in Iraq and Afghanistan,” the report said.

But the island’s legal framework for investigating and prosecuting terrorist-related activity remains relatively weak, the State Department said.

The two countries cooperated closely on terrorist financing and money laundering issues with Cyprus maintaining a “Prevention and Suppression of Money-Laundering Activities Law” that contained provisions on tracing and confiscating assets.

“In the Turkish Cypriot-administered area, issues of status and recognition inevitably restricted the ability of authorities to cooperate on counterterrorism,” the report said.

Turkish Cypriots cannot sign treaties, UN conventions, or other international agreements, and lack the legal and institutional framework necessary to combat money-laundering and terrorist financing effectively.

“Within these limitations, Turkish Cypriots cooperated in pursuing specific counterterrorism objectives.”

By George Psyllides Published on August 7, 2010

Source: Cyprus Mail

Dead Men on UN Terror List Hinder Global Fight Against Al-Qaeda

Ahmad Zerfaoui is one of the world’s most wanted terrorists, according to the United Nations, which lists him as a member of al-Qaeda’s North African arm. It may be difficult to bring him to justice: He died three years ago. At least 42 dead people and as many as 69 defunct companies are among about 500 names on the UN’s list of alleged al-Qaeda and Taliban supporters, said Richard Barrett, who heads the world body’s committee monitoring sanctions on the groups and is working to clean up the register.


UN member states are reluctant to apply sanctions on the Taliban, al-Qaeda and their supporters because governments don’t know who on the list is a legitimate threat, Barrett said. The inaccuracies also hamper Obama administration efforts to motivate allies in the war on terrorism who don’t want to be seen as too close to the U.S., said Eric Rosand, a security analyst in New York.

“We turn to the UN for its global legitimacy, but if the UN tool is seen as illegitimate, you limit your effectiveness,” said Rosand, co-director of the Center on Global Counterterrorism Cooperation, an independent research group. “The UN has a lot of cachet where the U.S. is not appreciated.”

The list grew out of UN sanctions levied against the Taliban in 1999 after the Afghan Islamists refused to give up al-Qaeda operatives following the bombings of U.S. embassies in East Africa.

Assets and Travel

The sanctions, which require nations to freeze assets of those listed and bar them from travel and weapons transactions, were extended to al-Qaeda in 2000 and strengthened after the Sept. 11, 2001, attacks.

“It was all a bit frantic after 9-11” and some names were added to the list that don’t belong, said Barrett.

All 15 Security Council nations must agree to add or remove any person or company from the register.

“There are dead people on the list and the committee can’t get them off,” Rosand said.

Groups on the list include Egyptian Islamic Jihad; branches of Saudi Arabia-based al-Haramain Islamic Foundation, which the UN called a main source of funds for al-Qaeda; and two honey shops and a bakery in Yemen whose owner was accused by the UN of being an al-Qaeda financier.

Thomas H. Nelson, an attorney for al-Haramain’s now- shuttered U.S. branch, called the terrorism accusation “ridiculous” in a phone interview from Welches, Oregon.

Barrett has removed 12 entities from the list this year. Some defunct companies are kept on to ensure they don’t revive, he said.

Death in Mali

Zerfaoui, who died in Mali in 2006, according to the UN, remains on the list because his name hasn’t come up for review.

“The problem with ‘dead’ people is proving that they are dead, particularly if they have died in ungoverned areas or countries where identities are uncertain and burials take place as soon as possible after death,” Barrett said in an e-mail.

Barrett, 60, a former officer of Britain’s MI6 spy agency, heads eight senior officials and about a dozen support staff from countries including Russia, France and the U.S., working from a midtown Manhattan office.

Many of Barrett’s security, intelligence and financial contacts are in countries that shy away from open cooperation with the U.S.

“This is a good way for the U.S. to get its agenda applied under a neutral flag,” said Barrett.

‘Significant Success’

Even with its flaws, the list helps the U.S. stifle al- Qaeda and the Taliban, said David S. Cohen, the Treasury’s assistant secretary for terrorist financing.

“We’ve had some significant success in degrading the financial facilitation networks by which al-Qaeda has been obtaining their funds,” he said in an interview.

Barrett said intelligence reports show al-Qaeda and the Taliban made several appeals for cash this year, a signal they are hurting from the sanctions. He said he didn’t have data from member states to show conclusively how much money has been seized under the sanctions.

Critics of the program including Jean-Charles Brisard, a former head of corporate intelligence at Paris-based Vivendi Universal SA, said the UN hasn’t kept up with terrorists’ financing methods. Since 2003, the amount of assets frozen and the number of names on the list has remained at about $80 million and 500 people, said Brisard, now a consultant for families of Sept. 11 victims.

“That’s quite ridiculous,” he said from Paris.

Legal Challenges

Countries have also been reluctant to enforce the sanctions out of concern the list won’t stand up to legal challenges, said Brisard and Barrett.

A Saudi businessman, Yassin Abdullah Kadi, also known as Yasin al-Qadi, who is on the list for allegedly supplying arms and funds to al-Qaeda and had his assets frozen, appealed to the European Court of Justice. The court ruled last year that the European Union regulations enforcing the UN sanctions denied his rights, including the right to judicial review. The asset freeze, the court said, was “an unjustified restriction” on property rights.

The council is discussing new rules on the listing and appeals process.

“For the sanctions to be efficient,” Barrett said, “they have to be respected.”

To contact the reporter on this story: Peter S. Green in New York at psgreen@bloomberg.net.

Source: Bloomberg

VietNam: Money laundering not found in transactions

VietNamNet Bridge – The State Bank of Vietnam (SBV)’s money-laundering watchdog said it has not found any signs of money laundering in banking transactions since its inception in March 2007.

At an anti-money laundering seminar in Hanoi on July 25, Pham Mai Phuong from the SBV’s anti-money laundering centre reported it had investigated 20 transactions suspected of laundering money but found no trace of the crime in those activities.

However, she alerted that the country would deal with the crime in a more sophisticated manner in the future as its World Trade Organisation membership provides a fertile ground for this activity.

Vietnam has adopted regulations mandating the fight against money laundering, notably Article 251 of the 1999 Penal Code, Article 19 of the 1997 Law on Credit Organisations and the Governmental decree on the combat of money laundering issued in 2005.

Advisor to the Vietnam-based UN Office for Drugs and Crime (UNODC), Ric Power, said Vietnamese law enforcement agencies have not yet interpreted the regulations into their operations and thus failed to perform effectively in the fight against the laundering of money.

While hailing the establishment of the SBV’s anti-money laundering centre, the UNODC official recommended the nationwide deployment of measures to combat money laundering in line with international standards.

He outlined the need to formulate an anti-money laundering system to aid the fight against corruption and crime, thus giving safeguards to international financial institutions in Vietnam and solidifying investors’ confidence on the country.

The UNODC has to date helped concerned Vietnamese agencies to improve their working capability and build the anti-money laundering system.

In November, experts of the Asia-Pacific Group on Money Laundering (APG) will come to Vietnam to enquire into and assess the country’s anti-money laundering activities.

According to the anti-money laundering decree issued by the Government in June, 2005, financial institutions are obligated to report to the SBV’s anti-money laundering centre of suspicious transactions, deals in cash or foreign currencies and gold worth more than 200 million VND and saving deposits of 500 million VND upward for investigations on money laundering.

Source: VNA

Yemen Cabinet studies report on money laundering, funding terrorism

The cabinet studied in its meeting held on Tuesday report raised by finance minister and committee of controlling money laundering over results of Financial Working Group in the Middle East and North Africa and Yemen's efforts in this field.

On this regard, the cabinet approved continuous work of the Supreme Observatory Committee headed by governor of the central bank to follow up carrying out work plan for enhancing measures curing faults and issuing law for combating money laundering as well as ratifying Yemen's joining to the UN treaty against terrorism funding.

The cabinet stressed on concerned authorities deal with money laundering and funding terrorism issues to complete measures and faults the plan on this regard requires.

The cabinet also approved report of financial minister over results of liquidation of the General Corporation for Foreign Trade and Grains and approved dissolving works till 30-6-2008.

Source: Saba News

Kenya: Banks urged to unite in money laundering fight

Commercial banks and institutions involved in fighting crime should work together to help the country detect and block money laundering activities, a regional security think-tank has said.

The Institute of Security Studies (ISS) said this institutional cooperation should be extended to Eastern Africa region through improvement and harmonisation of anti-money laundering laws.

It has also called on Kenya to domesticate the anti-money laundering provisions contained in the UN Convention on Organised Crime.

Kenya has come under increasing pressure to implement money laundering laws in the face of rising crime posed by the drug traffickers, international terrorists and illicit arms traders operating in the country.

Failure to have an anti-money laundering law in Kenya has been cited as a possible reason behind the country’s failure to attract foreign direct investments despite having a relatively well developed financial system. Laundered money breeds unfair competition as genuine business persons borrow capital on interest hoping to repay such funds using business proceeds, while persons using laundered money pay no interest on the capital.

Source: The Business Daily

G7 praises FATF action against Iran

Washington, Oct 20: Group of seven finance leaders have praised the Financial Action Task Force for its role in uncovering alleged money laundering and other illicit finance related to Iran.

"We remain committed to fighting money laundering, terrorist financing and other illicit financing involving similar risks to financial markets, G7 finance ministers and central bankers from the world`s seven richest nations said in a statement after a one-day meeting here.

"We particularly commend FATF for taking steps to protect the international financial system from the various money laundering and terrorist financing risks related to Iran," the joint statement said.

"In the wake of two unanimous UN Security Council resolutions addressing Iran`s nuclear and ballistic missile programmes, and the FATF`s actions identifying the risks of illicit finance associated with Iran, financial institutions are advised to take into account these risks."

The international money laundering watchdog called on Iran a week ago to address to close loopholes in its financial system and take steps to limit terrorist financing.

"FATF calls upon Iran to address on an urgent basis its deficiencies," the group said in a statement from Paris.

Russia repatriates diplomat jailed in United States

A Russian diplomat jailed in the United States in a case linked to the Iraqi oil-for-food program has been transferred home to serve out his sentence, the Russian Foreign Ministry said on Wednesday.

A U.S. court last year sentenced Vladimir Kuznetsov to four years in prison for helping launder over $300,000 in bribes from firms seeking contracts with the United Nations. He once chaired a U.N. budget committee.

Russia's Foreign Ministry praised the decision to transfer him home, a rare positive note in relations between Moscow and Washington which have been strained over Russia's war in Georgia and U.S. plans for a missile defense system in Europe.

"We are satisfied that this has turned out successfully," the Foreign Ministry said in a statement posted on its Internet site www.mid.ru.

"This was helped in large part by the close cooperation established between the Ministries of Justice of Russia and the United States, and also the assistance of the U.S. foreign affairs department."

It said Kuznetsov was handed over to Russian officials in New York on Tuesday and is now being held in temporary police detention in Russia before a decision is taken on where he serves the remaining three years of his sentence.

At the time of Kuznetsov's conviction, the Russian Foreign Ministry expressed its disappointment and the case attracted intense media coverage in Russia, with some commentators saying the charges were fabricated for political reasons.

Russian President Dmitry Medvedev has said that he hopes for better relations with the United States once President-elect Barack Obama replaces President George W. Bush in the White House.

(Reporting by Conor Sweeney; Editing by Charles Dick)

Source: Reuters

US Official Hails UAE Steps to Protect Financial Centre from Iran’s ‘Illicit Transactions’

The UAE has demonstrated “real commitment” to protect its international commercial and financial centre from illicit financial transactions and commerce.

“In the long run, there is a competitive advantage for the centres that are trusted to have clean financial flows,” Stuart Levey, Undersecretary, Terrorism and Financial Intelligence of the US Department of Treasury, told reporters on Wednesday before leaving for London after a two-day visit to the UAE as part of a four-nation tour of Israel, the UAE, the UK and France.

Levey has visited the Gulf countries several times in the past few years as he deals with Iran’s use of international financial system to pursue its nuclear programme.

The main purpose of his tour now was to brief key allies, including the UAE, on some of the actions the US has taken to implement the multilateral obligations under the UN Security Council resolutions.

“There is a challenge in the UAE specially because of deep financial and commercial ties between the UAE and Iran,” he said.

“I had an excellent set of meetings here. There is a very strong alliance on all issues between the US and the UAE and the issue of Iran as well”, he said.

“The UAE in general has built and continue to improve upon an international commercial and financial centre. We shared ideas about how important it is to build that sort of a centre to protect the system from illicit financial transactions and commerce because in the long run there is a competitive advantage for financial centres that take those issues seriously and become known as centres to be trusted to have clean financial flows,” he explained.

He said Iran’s pursuit of a nuclear programme in defiance of the UN Security Council resolutions is viewed as a threat not just to the US but all across the world, including in this region.

“Iran is engaging in deceptive financial conduct to pursue its programme and trying to do so in this region that is viewed as very much a threat to the financial centres they are trying to build here,” he said.

Levey said the UAE took very seriously its obligations under the UN Security Council resolutions. It also took seriously its commitments as a country that had articulated its support for Financial Action Task Force (FATF) principles as well as the future of its financial system and its reputation

He said that continual improvement in controls was the only way to tackle the worldwide problem of money laundering.

He said Iran’s use of relationships in international financial system to move money to pursue its nuclear and missile programme and its support to terrorist groups was a principal threat.

qudoos@khaleejtimes.com

Source: Khaleej Times

US official warns of Iran's 'illicit financial clout'

By Himendra Mohan Kumar, Staff Reporter

The US Undersecretary of Treasury for Terrorism and Financial Intelligence on Wednesday accused Iran of seeking to manipulate its relationships in the international financial system to pursue its nuclear agenda and missile programme besides aiding terrorist groups.

"In many ways, it [Iran] is seeking to use the relationships to move money, that's a principal threat," Stuart Levey told reporters at a news conference at the US Embassy in Abu Dhabi.

"Iran is engaging in deceptive financial conduct to pursue their programme and they are trying to do so in this region," he said.

Levey was in the UAE on a two-day official visit as part of a four-nation tour to discuss progress on measures to counter terrorist financing and other clandestine funding, with particular emphasis on Iran, and held talks with the leadership here. He said the UAE would have to safeguard itself from "illicit financial transactions and illicit commerce" as it transformed into an international, commercial and financial centre.

UN commitments

He expressed particular concern about operations of two Iranian banks in the UAE, Bank Saderat Iran and Bank Melli Iran.

"There's a challenge here in the UAE especially because of the deep financial, familial and commercial ties between UAE and Iran," said Levey.

He noted that the UAE had been very serious about obligations mandated under UN Security Council resolutions. "They also take seriously their commitments as a country that has articulated its support for the Financial Action Task Force principles and they take very seriously the future of their financial system and the reputation of their financial system."

The US has been saying that Iran's access to the international financial system enables the regime in Tehran to facilitate its support for terrorism and proliferation. It says Iran is the world's most active state sponsor of terror and, in a number of cases, Iran has used its state-owned banks to channel funds to terrorist organisations.

"Iran's pursuit of a nuclear programme in defiance of UN Security Council resolutions is viewed as a threat not just by the United States but all across the world, including in this region," said Levey.

Source: Gulfnews

Global action on counterung terror: Sri Lanka’s perspective

Excerpts from the speech by Rohitha Bogollagama, Minister of Foreign Affairs at the Australian Strategic Policy Institute, Canberra last week

Since 1963, the international community has elaborated 13 universal legal instruments to prevent terrorist acts. Those instruments were developed under the auspices of the United Nations and its specialised agencies and the international Atomic Energy Agency (IAEA) and are open to participation by all Member States.

Currently, UN Member States are negotiating a 14th international treaty, a draft comprehensive convention on international terrorism. This convention would complement the existing framework of international anti-terrorism instruments and would build on key guiding principles already present in recent anti-terrorist conventions: the importance of criminalisation of terrorist offences, making them punishable by law and calling for prosecution or extradition of the perpetrators; the need to eliminate legislation which establishes exceptions to such criminalization on political, philosophical, ideological, racial, ethnic, religious or similar grounds; a strong call for Member States to take action to prevent terrorist acts; and emphasis on the need for Member States to cooperate, exchange information and provide each other with the greater measurer of assistance in connection with the prevention, investigation and prosecution of terrorist acts.

The Global Counter-Terrorism Strategy, which was adopted by the UN General Assembly on 08 September 2006, highlighted the importance of Member States becoming parties to existing international counter-terrorism instruments and implementing their provisions without delay. This was first time that countries around the world agreed on a common strategic approach to combat terrorism.

Terrorism is, sadly, no stranger to Sri Lanka. We, in Sri Lanka, know terrorism, unfortunately, only too well. It is regrettably an everyday reality confronting us, even as we try to commute to our work places and attend to our daily chores.

We know at first hand the horrific consequences of the brutality of terrorism; the carnage, the shock and horror, the thousands of unsuspecting lives lost or maimed in the flash of a bomb explosion, the thousands of families left bereaved, the countless personal tragedies that terrorism leaves in its wake. The debilitating effects of terrorism on the psyche of the nation have been such that an entire generation has been born and raised in Sri Lanka under the dark clouds of this scourge.

Sri Lanka is a State party to 12 international conventions relating to terrorism. The most recent instrument that we ratified was the International Convention for the Suppression of Acts of Nuclear Terrorism, which was negotiated and concluded in April 2005 by the UN Ad Hoc Committee on Terrorism, under the Chair of Sri Lanka. Currently, a Bill to give effect to this Convention has been gazetted and will be presented to Parliament shortly for adoption into domestic law.

At the regional level too, Sri Lanka has played a pro-active role in galvanizing support for collective action in combating terrorism. At the recently concluded 15th SAARC Summit in Colombo, leaders of the assembled eight member states gave their blessings to the SAARC Convention on Mutual Legal Assistance in Criminal Matters, which was signed by the Foreign Ministers.

Among the key weapons in the armoury of the international community to fight terrorism is the International Convention for the Suppression of the Financing of Terrorism, which entered into force on 10 April 2002, following its adoption by the UN General Assembly in December 1999.

The speed with which member states ratified this Convention, illustrated the commitment of the international community to combat terrorism, especially in the immediate aftermath of the terrorist attacks on the US in September 2001.

In response to those attacks, the UN Security Council acting under Chapter VII of the UN Charter, adopted Resolution 1373 on 28 September 2001, which inter aliacalled upon States to “become parties as soon as possible to the relevant international conventions and protocols relating to terrorism, including the International Convention for the Suppression of the Financing of Terrorism of 09 December 1999”.

Increasingly, international terrorist activity has become interlinked with other modern scourges, such as drug trafficking and the proliferation of small arms. This Convention recognizes that financing is at the heart of terrorist activity, and it paves the way for concerted action and close cooperation among law enforcement agencies, financial authorities and States.

It calls for efforts to identify, detect, and freeze or seize any funds used or allocated for the purpose of committing a terrorist act. It urges States to consider establishing mechanisms to use such funds to compensate victims and/or their families.

The Liberation Tigers of Tamil Eelam (LTTE) which has earned international notoriety and opprobrium for its countless cold blooded and savage acts of terrorism, targeting not only high profile politicians and military personnel, but ordinary civilians, designed to cause maximum casualties and property destruction, is a prime candidate for consideration by the Working Group for listing, as an international terrorist group. The LTTE is pre-eminently qualified to meet the criteria for such listing.

After all, the LTTE has been described as “probably the most sophisticated terrorist organization in the world”, by Dr. Magnus Ranstorp, Chief Scientist at the Centre Asymmetric Threat Studies of the Swedish National Defence College. More recently, the FBI of the United States has given the LTTE the appellation as “among the most dangerous and deadly extremists in the world”.

I do hope the UN Working Group will take cognizance of the clear and present danger that the LTTE poses not only to the sovereignty and territorial integrity of Sri Lanka, but equally to the law and order as well as the stability of Western societies, which have been infected by the pernicious and malignant influence of the LTTE.

The LTTE is notorious for resorting to intimidation, extortion and even violence on the large Sri Lankan Tamil diaspora in the West to ensure a steady flow of funds to finance its terrorist campaign in Sri Lanka.

Funding from the diaspora has been the mainstay fuelling the LTTE’s terror campaign in Sri Lanka. The traditional “melting pot” paradigm, where emigrants gradually lost ties to their countries of origin and became assimilated into the social fabric of their adopted nations, is no longer the norm.

The LTTE, running a highly sophisticated and intricate international web, encompassing the whole gamut of activities ranging from seemingly innocuous pursuits, such as the promotion of Tamil culture to raising funds ostensibly to support charities and humanitarian relief in Sri Lanka, has cleverly exploited modern technology to finance its terror campaign.

In fact, although several countries including India, the United States, the United Kingdom, the 27 member European Union and Canada have proscribed the LTTE, the many front organizations of the LTTE which operate rather freely in these countries, continue to raise funds and engage in propaganda in support of the LTTE. These fronts provide a cover for the LTTE to indulge in various nefarious activities, including illicit arms procurement, human smuggling, narcotics trafficking, credit card scams and money laundering.

All too often there is a tendency to lose sight of the meticulous organization behind each act of terrorism, the extensive network of secret cells, responsible for collecting funds, procuring illicit weapons and bomb making material, and foot soldiers responsible for propaganda. The ability of the LTTE to transfer vast sums money through illicit channels, bypassing the scrutiny of Central Banks of Governments, is a major challenge in combating terrorism.

We greatly appreciate the pro-active stance of the Australian authorities in arresting and prosecuting frontline activists and sympathizers of the LTTE, notwithstanding the fact that Australia is yet to proscribe the LTTE as a terrorist organization. Hence, the arrest of three activists of the Melbourne based LTTE front, the Tamil Coordinating Committee in April 2007 by the Australian Federal Police and their subsequent prosecution on charges relating to raising funds for terrorism, is all the more welcome.

We also note that the Australian Federal Police have arrested the Director of a Melbourne business college in July this year, at the request of the FBI of the US, for his links to the LTTE, and wanted to face prosecution for alleged terrorism offences in the US.

However, much more needs to be done to pursue front organizations of the LTTE, posing off as charities and humanitarian relief groups, which continue to raise funds to fill the LTTE war chest.

In this respect, the United States has taken a bold lead in targeting the support network of the LTTE by designating the Tamils Rehabilitation Organization (TRO), which had long claimed itself to be a charitable organization, as a front to facilitate fund raising and procurement of weapons for the LTTE.”

Notwithstanding the overwhelming body of evidence that is available with several governments on the inextricable and organic link between the TRO and the LTTE, it is a matter of regret that apart from the US and the UK governments which have listed the TRO, this organization as well as numerous other fronts, representing the multi-headed hydra like character of the LTTE, are operating with impunity, thumbing a nose at the authorities in many Western countries which have a significant presence of the Sri Lankan Tamil diaspora.

Thus, the onus is now clearly upon the international community to support Sri Lanka, by taking tangible and meaningful steps to eradicate terrorism from our land, and help the government to restore democracy and rebuild the damaged infrastructure in the North and the East of the country. We believe that the true friends of Sri Lanka in the international community, who have the well being of our people at heart must put their money where their mouth is, by taking decisive action to stop funds being raised under various ruses, which are being channeled to finance the LTTE’s operations.

We strongly believe that terrorism cannot be countered by using terrorism; we reject the notion that terror must be fought by terror.

While this approach has found favour in certain quarters, giving rise to robust rules of engagement for the military to engage terrorists, in turn, resulting in collateral damage in the form of massive civilian casualties, Sri Lanka firmly believes in the protection of human rights, even as its military forces are currently engaged in freeing our people from the fascist and dictatorial control of the LTTE terrorists, who are now holed up in parts of the Kilinochchi and Mullaitivu districts in the North.

The Government of Sri Lanka is deeply concerned about the humanitarian situation of civilians in the uncleared areas, as the military operations enter a decisive phase to free these areas from the terrorists. As a responsible government, President Mahinda Rajapaksa’s administration is acutely conscious and aware of its responsibilities towards all citizens of Sri Lanka.

This is why, even as there is intensification of the military strikes against the LTTE, there is remarkably minimal collateral civilian casualties. This has not occurred by chance or a fortuitous turn of circumstances, but rather in pursuance of the government directive to the military to adhere strictly to a policy of “zero civilian casualty”, in combating terrorism.

The absence of civilian deaths in the Eastern Province clearing operations last year, except in one isolated incident where the LTTE used civilians as cover to fire at the military, is a manifestation of the success of this strategy, which we are confident, will be replicated in the ongoing operations in the North.

While it should come as no surprise that critics of Sri Lanka and sympathizers of the LTTE are attempting to portray a misleading and totally false notion that the government is opting for a military solution to address the problems of the minorities, it is unfortunate that some of our friends too have been influenced by this malicious propaganda.

Nothing can be further from the truth. In fact, President Mahinda Rajapaksa addressing the 63rd session of the UN General Assembly in New York last month, made it amply clear to the international community that the Government of Sri Lanka is firmly committed to a political solution.

The Government attaches the highest importance to the humanitarian needs of displaced persons and civilians in the areas affected by the conflict. This is an obligation and responsibility which the Government has assumed since the inception of the conflict.

The civilians who are trapped in the LTTE controlled areas are being encouraged to move out of these areas through “humanitarian corridors” created in order that the security forces can put an end to terrorism in Sri Lanka and prevent them being used by the LTTE as “human shields”.

It is highly deplorable that the LTTE is cynically exploiting the plight of innocent civilians kept prisoner against their will, for propaganda purposes. With regard to Internally Displaced Persons (IDPs) in LTTE dominated areas in the Killinochchi and Mullativu districts, the current estimate is around 250,000, of which there are 110,000 pre-2006 IDPs forced to flee to the Wanni by the LTTE from the Jaffna peninsula, another 90,000 who were displaced between 2006 and June 2008 and the rest displaced due to the on-going operations. In considering the situation of the IDPs, it is important that we bear in mind that the situation of those displaced due to the on-going military operations in the Wanni, as previously in the case of the East, is merely a temporary dislocation.

On the other hand, I wonder why the shrill voices of those who are screaming of a non-existent humanitarian catastrophe in the Wanni, are deafeningly silent on the plight of the over 100,000 Muslims who are now languishing in refugee camps, mainly in the impoverished Puttalam district and others in the Anuradhapura and Polonnaruwa districts after being forcibly evicted by the LTTE from the North. 24th October marks the 18thanniversary of the ethnic cleansing of Muslims from the North by the LTTE.

More than 75,000 Muslims were compelled to vacate their homes at gun point on this day in 1990 by the LTTE and after they were driven out of their lands, which they had inhabited from time immemorial, the LTTE went about systematically looting and pillaging the properties and valuables of these hapless people. If any proof were needed of the racist nature of the LTTE, the ethnic cleansing of Muslims from the North, speaks for itself - res ipsa loquitur.

It is very important that all those who are concerned about Sri Lanka including the welfare of the Tamil community should perceive the marginalisation of the LTTE in the correct light. LTTE does not represent the Tamil community in Sri Lanka. Therefore, military action against the LTTE should never be perceived as action against our brethren, the Tamil community. We are concerned about them and will work with them to ensure their welfare, security and aspirations since they are our fellow citizens.

Sri Lanka, a party to all major UN Conventions relating to terrorism, and playing an active role as Chair of the General Assembly’s Ad Hoc Committee on the Elimination of International Terrorism, will continue to urge all member nations to ratify them so as to give real meaning to the intent of the drafters, who have toiled through sleepless nights in lengthy and exhaustive negotiations to produce these important legally binding instruments, and thus implement their provisions in letter and spirit.

Nothing short of this commitment would suffice in the global struggle to eliminate the modern day scourge of terrorism.

Source: Daily News

Joint Declaration of the Participants in the EU-Central Asia Forum on Security Issues in Paris

Driven by a shared commitment to developing and organising our long-term partnership on the basis of common objectives and undertakings to strengthen peace and stability in Central Asia, respect for human rights and the development of the rule of law and democracy, we met on the occasion of the First European Union - Central Asia Forum on Security Issues in Paris on 18 September 2008.

With the contribution of the international and regional organisations concerned, we have analysed security issues in Central Asia and defined concrete policy lines for our joint action in the following areas: combating illicit trafficking in arms, sensitive material, narcotics and human beings; combating terrorism and extremism; and cooperation in energy and the environment.

In line with the European Union’s Strategy for a New Partnership with Central Asia and on the basis of documents on the bilateral priorities of cooperation and of the regional initiatives, we agreed on the following points:

1. Strengthening political dialogue in all its forms

Convinced that socio-economic development, human rights, stability, peace and security are inseparable and mutually reinforcing, we intend to examine together the principal factors of tension and their consequences in the world today. It is our responsibility to create, through our exchanges and our joint initiatives, the conditions required to develop the potential of Central Asian countries. Political dialogue helps to lay the foundations for future action and shared work with a view to ensuring the political and socio-economic security and stability of the countries in the region.

We underline the importance of the EU Rule of Law Initiative in Central Asia. We will continue the dialogue on human rights with the EU, as well as in the framework of bilateral relations and multilateral organisations such as the UN and the OSCE, of which Kazakhstan will hold the chairmanship in 2010.

2. Strengthening regional stability

Broadening cooperation among the region’s countries, particularly on border security, is key to regional stability and security in Central Asia and to setting up cooperative management of regional risks and threats.

Our joint efforts will help to combat new risks and threats more effectively.

It is essential to reinforce regular exchanges of information and analyses to take into account possible risks of a political and military nature, especially through collaboration between analysis and research centres working on security, strategy and international relations issues in the Central Asian countries and in the EU.

The proliferation of weapons of mass destruction and their means of delivery represents a particular threat to peace and international stability. We reaffirm our support for the multilateral treaties and agreements as well as international initiatives on non-proliferation, and we agree to step up our efforts with a view to their full implementation. The commitment of the Central Asian countries to non-proliferation and disarmament was confirmed by the signing of the Treaty on a Nuclear-Weapon-Free Zone in Central Asia on 8 September 2006 in Semipalatinsk.

The creation of a nuclear weapon free zone will help to maintain and strengthen peace and stability internationally and regionally and promote non-proliferation in all its aspects.

We intend to pool our experience and cooperate in establishing effective export control systems, including conventional arms exports, strengthening border controls and securing sensitive facilities and sources of nuclear, radioactive, biological and chemical material, in order to prevent any risk of proliferation and procurement by terrorist groups.

We express our grave concern about growing nuclear proliferation crises and the risk of destabilisation to the non-proliferation regime, and we are in favour of compliance with international non-proliferation obligations, particularly the resolutions of the United Nations Security Council and those issued by IAEA Board of Governors.

We underline the importance of boosting the role of the IAEA in the peaceful uses of nuclear energy.

3. Stepping up the fight against terrorism

Combating terrorism in all its forms and expressions must be conducted within the framework of the international treaties and relevant United Nations Resolutions while respecting human rights, which guarantees its effectiveness.

We agree to continuously fight the financing of terrorism, in accordance with the recommendations of the Financial Action Task Force (FATF).

We consider that enhanced cooperation at all levels among the countries concerned, in both Central Asia and Europe, is a condition necessary to the successful achievement of our objective.

We believe it important to adopt measures to prevent the action of terrorist organisations that are engaged in illicit activities and that are banned by Central Asian and EU countries.

4. Developing cooperation between Central Asia and the European Union in rebuilding Afghanistan and stabilising its situation

We are mindful of the stabilisation and development of Afghanistan, factors which contribute to consolidating regional and global security. In referring to the conclusions of the International Conference in Support of Afghanistan held in Paris on 12 June, we reaffirm our determination to actively contributing to their implementation, particularly by reinforcing our political exchanges and economic cooperation with this country, as well as our cooperation with the relevant international organisations, especially the United Nations and the United Nations Assistance Mission in Afghanistan (UNAMA).

5. Joining forces to fight illicit trafficking in arms, sensitive materials, narcotics and human beings

The EU will increase cooperation with Central Asian countries to strengthen and implement legal measures to more effectively combat all forms of illicit trafficking: arms, sensitive materials, narcotics, psychotropic substances and their precursors, and human beings. The adoption of national strategies on integrated border management could be an effective means of ensuring internal stability in Central Asia. The Dushanbe Conference on 21 and 22 October 2008 will review the mechanisms for enhancing international coordination.

Concerned by persistently high drug production levels in Afghanistan and by the development of opium-to-heroin conversion activities, we welcome the adoption of United Nations Security Council Resolution 1817 on the fight against the trade in precursors. We are committed to implementing its provisions, particularly those aimed at increasing international control of precursors. We undertake to enhance cooperation within the framework of the 1988 United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances and the Paris Pact Initiative. A meeting of experts based on an enlarged troika format is planned on 1 October 2008 in Brussels and will help to strengthen the control of these products at a regional level. On this occasion, discussion focusing on updating the drug action plan will begin.

We believe that it is essential to develop and implement projects/programmes to improve, in their fight against narcotics trafficking, the law enforcement capacities of the countries bordering Afghanistan which are most at risk from the trafficking in narcotics originating from Afghanistan.

We are thoroughly convinced that the development of cooperation among Central Asian countries, with the participation of international organisations and donor countries, will ensure the adoption of effective measures to fight this common scourge. In this connection, we welcome the creation of the Central Asia Regional Information and Coordination Centre (CARICC) for the fight against narcotics trafficking.

6. Strengthening cooperation in energy, the use of natural resources and the environment

We will reinforce our cooperation in energy without prejudice to current cooperation.

We consider that the harmonisation of the interests of energy consumers and suppliers, transit states and transnational companies is a guarantee of international energy stability. Energy security in Central Asia and the EU presupposes common rules and a reasoned choice of new transport options involving all the countries concerned. We reaffirm the importance of active cooperation in the development of different hydrocarbon transport corridors that aim to ensure a guaranteed and reliable supply for European markets and other international markets.

In light of the conclusions of the energy ministers’ conference in Baku in November 2004, our cooperation will focus on the development of regional energy markets and strengthening the financing capacities for new infrastructure; implementation of open, forward-looking and proactive energy policies; setting up an investor-friendly environment by according an appropriate role to market mechanisms; and lastly improving energy efficiency in the various uses of primary energy to reduce greenhouse gas emissions, lessen the cost to economic growth and free up additional capacity.

We also note the necessity of enhancing our cooperation in renewable and alternative energies as well as in reliable, sustainable, low-carbon technologies. We will achieve this by comparing energy scenarios and ensuring cooperation among energy industries, particularly upstream and downstream of the hydrocarbons industry.

We are in favour of developing cooperation to jointly exploit hydro-energy resources, taking the interests of all the region’s countries into consideration.

The European Union will provide support to the development of hydraulic energy in Central Asia that will also help to reduce greenhouse gas emissions without prejudice to the region’s environmental security.

Conscious of the security implications of climate change, we are in favour of adopting long-term strategies to prevent the climate effects of human activities and in favour of the accession to multilateral instruments related thereto. We suggest that a dialogue be launched on how to address the threats posed by climate change in Central Asia in order to strengthen EU and Central Asian cooperation on this issue.

The European Union will pay particular attention to regional cooperation in Central Asia on the rational, efficient and sustainable use of hydraulic, hydro-energy and fuel resources and the environment.

The EU is ready to use its study and cooperation capabilities to facilitate the implementation of best practices, availability of drinking water and sanitation, as well as fighting climate change, inter alia, by increasing energy and hydraulic efficiency while safeguarding the ecological balance in the region.

We support the European Union’s Water Initiative (EUWI).

7. Helping to prepare a comprehensive approach to security in Central Asia

In a world marked by recurrent instability, we will strengthen our partnership and encourage the efforts of countries and regional organisations that can help to create a genuine area of cooperative security in Central Asia.

In this respect, we welcome the creation of the United Nations Regional Centre for Preventive Diplomacy for Central Asia

Source: France Diplomatie

US Responds to FATF's Call for Strengthened Measures Against Iran

The U.S. Department of the Treasury today issued the following response to a statement issued by the Financial Action Task Force (FATF) on Iran during its plenary meeting in Rio de Janeiro, Brazil.

Today's statement by the FATF marks the fourth time in the past year that the organization has warned the world of the serious threat posed by Iran's lack of a sufficient AML-CFT regime.

FATF expressed particular concern about Iran's lack of effort to combat terrorist financing and declared that this continues "to pose a serious threat to the integrity of the international financial system." FATF further declared that "urgent action" by Iran to address these concerns is necessary. As a result, FATF called for countries throughout the world to strengthen measures to protect their financial sectors from these risks posed by Iran.

The United States has repeatedly expressed its deep concerns about Iran's financial and material support to deadly terrorist groups. We have designated Iranian entities – including Iranian state-owned Bank Saderat – under our domestic authority, Executive Order 13224, which targets terrorists and those providing financial, technological, or material support to terrorists or acts of terrorism.

Consistent with FATF's action, we will be employing additional actions to target the risk of terrorist financing emanating from Iran. We encourage all countries to implement measures to protect the financial system from this urgent threat.

The FATF is the foremost standard setting body on preventing money laundering and terrorist financing. FATF's statement further evidences Iran's ongoing defiance of the international community.

Sustained action against Iran by the FATF, United Nations Security Council, European Union and others verifies that the international community's grave concerns about Iran's conduct transcend borders and politics.

Source: ISRIA

India takes tough stand on terrorism at RIC troika talks

Talking tough on the issue of terrorism, Indian External Affairs Minister Pranab Mukherjee today told his Russian and Chinese counterparts here that there can be no justification for any terrorist acts, and added that there should be zero tolerance towards this menace.Mukherjee urged Russia and China to implement the comprehensive Convention for the Suppression of the Financing of Terrorism, which was adopted by the United Nations on December 9, 1999.

Mukherjee also raised objections over talks taking place between the Pakistan Government and the Taliiban.Mukherjee said: “It confuses the cause of fighting terrorism both inside and outside Afghanistan.” At the meeting, Mukherjee also raised the issue of killing of indian workers in Afghanistan.India has also raised concerns over narco-trade which is fuelling terrorism in India. The Russian and Chinese Foreign Ministers also condemned Tuesday’s bombing in Jaipur, which claimed over 65 lives and injured over 200. (ANI)

http://www.thaindian.com/newsportal/south-asia/india-takes-tough-stand-on-terrorism-at-ric-troika-talks_10048944.html

EU to tighten screw on Tehran bank

By Daniel Dombey in Washington, Financial Times, 15 May 2008

Bank Melli, Iran's biggest commercial bank, is set to be banned from operating in the European Union under proposals in the final stages of discussion in Brussels.

At present, the bank operates branches in the City of London, France and Germany, so blunting American calls for other jurisdictions to break off ties with Iranian institutions, particularly in the Gulf.

"It is important for the EU to come to agreement on stepping up financial pressure on Iranian banks as a means of demonstrating to the Iranian regime how seriously we take their nuclear proliferation," said a European diplomat.

But the time and effort it has taken to get agreement on the move, which comes after a year-long push by the US and its allies, highlight the problems Washington may face in its quest to win international support for tougher sanctions and so convince Tehran to rein in its nuclear programme.

"Many people around the world are looking to Europe on this issue," Stuart Levey, US treasury undersecretary, told the FT. "What Europe does is quite important."

The US effort dates back to last summer, when negotiations began on a UN Security Council resolution that Washington and its allies wanted to prevent Melli and another Iranian bank, Bank Saderat, from doing business internationally.

In October, the Bush administration intensified its effort with unilateral sanctions against a number of Iranian institutions – including both Melli and Saderat – measures that Washington pushed other jurisdictions to emulate.

"We call on responsible banks and companies around the world to terminate any business with Bank Melli, Bank Mellat [another Iranian bank], Bank Saderat, and all companies and entities of [Iran's] Islamic Revolutionary Guards Corps," Hank Paulson, treasury secretary, said on that occasion.

However, Washington found itself caught in a "catch-22" when it pushed the UK, its closest ally, to close Melli and Saderat's operations in London. Britain said it could act only as part of a general EU decision and, within the EU, countries such as Germany, Austria, Spain and Italy called for a UN decision before they would proceed.

Seeking to break the impasse, the US, Britain and France finally won agreement on a UN Security Council resolution in March that merely called on member states to exercise "vigilance" over Iranian banks, especially Bank Melli and Bank Saderat, due to what it said was their link to proliferation and Iran's nuclear programme.

"It's pretty clear that the US had hoped that this would happen more quickly and perhaps be a little bit more robust," said Mr Levey.

Diplomats said the UN resolution was designed to "open the door" to an outright EU ban on the banks' subsidiaries in Europe. However, the EU has been reluctant to take action against Bank Saderat, which is principally faulted by the US for funnelling funds to Hizbollah, the Lebanese Shia movement. The Islamist organisation is not on the EU's list of proscribed terrorist organisations.

Throughout the past year, Iran has continued to expand its nuclear programme, announcing plans last month to install 6,000 new centrifuges to enrich uranium – although many western diplomats and analysts question their efficiency.

While Iran insists its programme is purely peaceful, the US and its allies accuse it of seeking to develop nuclear weapons.

US diplomats add that at present they are reluctant to embark on an attempt to pass another UN Security Council resolution because of the risk that it will provide meagre returns while highlighting differences with Russia and China, which are sceptical about further sanctions.

But Mr Levey said the financial sanctions, international warnings about the risk of money laundering and terror-financing in Iran, and related moves by international banks to scale down business with Tehran had had a big impact.

"It certainly has made the cost of financing [in Iran] to the extent that anyone has offered it at all, much more expensive," he said.

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