The Studies and Economic Center urged on Saturday Parliament to quickly pass the anti-money laundering and terrorist financing legislation that was sent to it in November 2007.
In a letter to Speaker of Parliament, the center said the legislation delay will expose Yemen to punishable measures and a sever rebuke, after it was given a deadline by the Middle East and North Africa Financial Action Task Force until April 2010 to approve it.
The delay may also have effects on the national economy, triggering a decline in grants, in addition to losing the trust in the financial sector and then further chains would imposed on it, the center said.
The letter also urged to activate the Anti-Money Laundering and Terrorist Financing Unit at the Yemeni Central Bank and other banks and exchange firms as well as continuous training for employees at the unit to introduce them to the newest approaches to combat money laundering and terrorist financing.
A report by the task force earlier noted that Yemen had not met its commitment towards combating money laundering and terrorist financing, pointing to the partly action in this regard amid the inactive Anti-Money Laundering and Terrorist Financing Unit at the YCB.
For its part, the center said the law 35-2003 was vague and short of tackling all developed financial crimes in the globalization time. The law did not also contain criminalizing terrorist financing, it added.
Meanwhile, Yemen has only revealed 11 suspected money laundering cases, one of which was turned over to the judiciary, according to information obtained by the center.
It is worth to mention that Yemen is one of the founding states of the Middle East and North Africa Financial Action Task Force and is in charge of evaluating the commitment of countries towards fighting money laundering and terrorist financing.
Source: Saba
Showing posts with label Yemen. Show all posts
Showing posts with label Yemen. Show all posts
on Friday, June 22, 2012
The Governor of the Central Bank of Yemen Mohammed Bin Hammam said on Saturday that Yemen is making significant efforts to improve the systems of Anti-money Laundering and Combating of Terrorism Financing.
The three-day workshop is organized by the National Committee to combat money laundering and terrorism financing in cooperation with the U.S. embassy in Sana'a.
He pointed out that greater efforts are required to apply regulations and procedures regarding combating money laundering and terrorist financing and develop mechanisms of cooperation with law enforcement authorities.
Source: Saba
on Wednesday, June 6, 2012
Attaching importance to Yemen's role in the U.S. counterterrorism strategy, the Obama administration has considered a 63-million-dollar assistance to the country, said the State Department on Monday.
"In fiscal year 2010, the president asked for a significant increase in foreign assistance to Yemen," State Department spokesman Ian Kelly told reporters, adding that the administration expects the assistance to be as much as 63 million dollars.
"This amount represents a 56-percent increase over fiscal year 2009 and a 225-percent increase over fiscal year 2008 levels," Kelly added.
According to the spokesman, the development and security assistance does not include 1206 counterterrorism funds, via which the Yemeni government has been authorized 67 million dollars in equipment assistance to support its counterterrorist and border control forces.
Moreover, the United States has been providing anti-terrorism assistance training in Yemen since 1998 through diplomatic security, and has been providing training to develop the government of Yemen's capability to counter terrorist financing.
"We're very concerned about the emergence of al-Qaeda in Yemen, " said Kelly.
"That's why we're increasing our efforts to help the government of Yemen deal with the terrorist threat, to help enhance their border and customs procedures, and why we're increasing our training and also looking into increasing these so-called 1206 funds to help them with their counterterrorist efforts," he added.
Yemen, a vital battlefield in the U.S.-led war against al-Qaeda, is viewed as a weak country without powerful central government control. Under U.S. assistance, the Yemeni government recently has taken more offensive operations against al-Qaeda targets.
Last month, Yemeni officials said raids against al-Qaida in the Arabian Peninsula (AQAP) hideouts in the southern province of Abyan and Arhab district, to the northeast of Sanaa, left some 60 militants killed and dozens others arrested.
The AQAP, which said the deadly strikes were conducted by the United States, has claimed responsibility for a foiled Christmas Day attempt to bomb a U.S. aircraft.
Source: CRI
"In fiscal year 2010, the president asked for a significant increase in foreign assistance to Yemen," State Department spokesman Ian Kelly told reporters, adding that the administration expects the assistance to be as much as 63 million dollars.
"This amount represents a 56-percent increase over fiscal year 2009 and a 225-percent increase over fiscal year 2008 levels," Kelly added.
According to the spokesman, the development and security assistance does not include 1206 counterterrorism funds, via which the Yemeni government has been authorized 67 million dollars in equipment assistance to support its counterterrorist and border control forces.
Moreover, the United States has been providing anti-terrorism assistance training in Yemen since 1998 through diplomatic security, and has been providing training to develop the government of Yemen's capability to counter terrorist financing.
"We're very concerned about the emergence of al-Qaeda in Yemen, " said Kelly.
"That's why we're increasing our efforts to help the government of Yemen deal with the terrorist threat, to help enhance their border and customs procedures, and why we're increasing our training and also looking into increasing these so-called 1206 funds to help them with their counterterrorist efforts," he added.
Yemen, a vital battlefield in the U.S.-led war against al-Qaeda, is viewed as a weak country without powerful central government control. Under U.S. assistance, the Yemeni government recently has taken more offensive operations against al-Qaeda targets.
Last month, Yemeni officials said raids against al-Qaida in the Arabian Peninsula (AQAP) hideouts in the southern province of Abyan and Arhab district, to the northeast of Sanaa, left some 60 militants killed and dozens others arrested.
The AQAP, which said the deadly strikes were conducted by the United States, has claimed responsibility for a foiled Christmas Day attempt to bomb a U.S. aircraft.
Source: CRI
on Thursday, May 31, 2012
By Marie Magleby, Special to Gulf News
Published: May 31, 2008, 23:44
Abu Dhabi: Gary Price and Ernest Herbert carry FBI badges, but their job descriptions are significantly different here than in the US.
Instead, the duo are go-betweens for local and US law enforcement. He said, "We work closely with UAE government officials to share information that protects the two countries."
They also offer training at the request of local authorities. The training involves many aspects of law enforcement, including ways to combat white-collar crime, violent crime, forensics and counter-terrorism.
In addition, the agents coordinate the Middle East Law Enforcement Training Centre in Dubai, which offers week-long courses for law enforcement personnel from around the Gulf.
Local authorities choose the topics and dates, and FBI specialists come from the US to teach the courses. Since its establishment in 2001, the centre, co-sponsored by the FBI and Dubai police, has conducted about 40 courses dealing with money laundering, computer crimes, intellectual property rights, kidnapping, auto theft, homicide, financial institution fraud, terrorist financing, hostage negotiations and more.
The globalisation of crime, especially financial and internet crime, places the agents in a pivotal position. "The UAE is an important crossroads for business and, as a result, also for crime," Price said of the potential for fraud or abuse in the banking system. With the help of local officials, they routinely seek to investigate bank records and track financial transactions linked to the US.
When internet crime is traced back to the US, the agents are also able to help. Just months ago, a prominent UAE citizen received a cyber threat from a location in the US.
Local law enforcement officials contacted Price and Herbert, who enlisted agents in the US to conduct an investigation. The man was arrested, charged and is now facing imprisonment.
About working with local authorities, Price said: "I truly enjoy working with the Emiratis. They are professional and very gracious." There are, however, obstacles. According to Price, a federal law that regulates "international judicial cooperation" is often misinterpreted to be a roadblock to investigations. "There is not a timely, quick way for law enforcement response because of the bureaucratic process," he said.
Law enforcement mechanisms do not always translate across cultures and borders, Herbert said in a similar vein. "Things are run differently here than in the US, so we have to do things differently."
When FBI agents are on international assignment, they assume the title of Legal Attaché in their respective embassies. Price and Herbert are successors to three other agents since the Abu Dhabi office opened in December 2003. They cover both the UAE and Oman. In the region, the FBI also has agents posted in Afghanistan, Egypt, Iraq, Israel, Jordan, Kuwait, Lebanon, Pakistan, Saudi Arabia and Yemen.
During his tenure, former FBI director Louis Freeh pushed to expand the bureau's international presence. It now has offices in 62 countries. This worldwide network of agents is a necessary countermeasure against the growing nexus of international crime. "Just as there are no borders for crime and terrorism, there can be no borders for justice and the rule of law," current director Robert Mueller told the US Senate in March.
Progress
"Twenty years ago, the idea of regularly communicating with our law enforcement counterparts around the world was as foreign as the internet or the mobile phone. Today, advances in technology, travel and communication have broken down walls between countries, continents and individuals," Mueller added. Price and Herbert embody this prog-ress.
Mueller became the dir-ector one week prior to the September 11, 2001 attacks.
The FBI began as a special agent force in 1908 and received its current title in 1935. Since its genesis, the FBI has seen its share of success and failure. Though it has successfully foiled numerous plots, conspiracies and espionage attempts, it has been criticised for shoddy investigation tactics and ignoring intelligence reports that could have prevented past attacks. Regardless, it has survived a century of challenges.
- The writer is a journalist based in Abu Dhabi.
Source: GulfNews
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on Saturday, May 26, 2012
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
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
on Monday, May 21, 2012
Michael Hayden, the director of the Central Intelligence Agency, spoke recently of the international community's successes against terrorism in key regions of the world and diminished worldwide support for al-Qaida.
Hayden told the Washington-based Atlantic Council of the United States November 13 that the United States - in cooperation with partners such as Iraq, Saudi Arabia, Indonesia and the Philippines - has greatly diminished the reach of several terrorist groups.
Al-Qaida in Iraq, for example, "is on the verge of strategic defeat," with the flow of money, weapons and foreign fighters into Iraq now "greatly diminished," Hayden said.
And al-Qaida's operational arm in Saudi Arabia largely has been defeated, he said. Indonesia has made inroads in detecting and disrupting terrorist plots in the past three years as a result of what he called "aggressive action by one of our most effective counterterrorism partners." Filipino allies have kept the pressure on the Abu-Sayef group, Hayden said, limiting its effectiveness.
While the remote, tribal areas on the Afghanistan-Pakistan border remain problematic, progress has been made, according to the CIA director. He said the practice of terrorists taking refuge in Pakistan's Federally Administered Tribal Areas is lessening. Due to cooperation among the Pakistan government, its military and the U.S. intelligence community, terrorist networks have lost many "decision makers, commanders, experienced and committed fighters" who, Hayden said, planned attacks against Europe and the United States.
The Pakistani government and military "deserves great credit for its current campaign against extremists," he added. More al-Qaida leaders have been killed or captured "in partnership with our Pakistani allies than ... with any other partner around the world," Hayden said.
The CIA official cited another reason for optimism in the fight against terrorism: "Some hard-line religious leaders are speaking out against al-Qaida's tactics and its ideology." Hayden cited generic polling showing declining support for al-Qaida and Osama bin Laden in predominantly Muslim countries.
More and more Muslims "are pushing back against the senseless violence and flawed worldview of al-Qaida," he said. Credible, authentic, influential Islamic voices are speaking out and "refuting al-Qaida's twisted justification for murdering innocents" as well as its ideology seeking to erase the distinction between combatants and noncombatants.
Besides Pakistan and Indonesia, Hayden praised the counterterrorism efforts of other U.S. partners such as Saudi Arabia and Iraq. Military and law enforcement activities and even efforts addressing the conflict of ideas have resulted in improvements in the Middle East and Southeast Asia, he said. "I have always said that the civilized world will win this fight when we win the war of ideas," he added.
NEXT STEPS
Efforts to defeat al-Qaida in the near future will continue to center on Yemen, Somalia and the Afghan-Pakistan border, according to Hayden. Intelligence suggests that some veterans of terror operations in Iraq are now drifting to other regions, such as North Africa and the Arabian Peninsula, in search of new action.
Even though al-Qaida has suffered serious setbacks in Iraq, Afghanistan and Pakistan, the intelligence-agency director said, "it remains a determined, adaptive enemy." Al-Qaida is still "the most dangerous threat we face," he told the Atlantic Council's Global Intelligence Forum.
In Hayden's opinion, al-Qaida's base of operations on Pakistan's border with Afghanistan remains "the single most important factor today in the group's resilience and its ability to threaten the West." He contends that the remote, tribal areas along the Afghan-Pakistan border have supported terrorist financing, recruiting, training and plotting in the past.
While al-Qaida-related operations in the tribal regions do not rise to the level of activity that once existed in Afghanistan, Hayden said, its recent efforts to destabilize Pakistan are worrisome.
The Pakistani army has been fighting extremists "forcefully and with considerable success since early August," Hayden said. The Pakistanis have a multibrigade operation under way in the tribal area of Bajaur, and while they have sustained losses, "they are also imposing significant casualties on our common enemy."
But when al-Qaida is dealt a blow, Hayden said, its senor leadership recalibrates. "They constantly look for ways to make up for losses, extend their reach, take advantage of opportunities, and we're seeing that ... in some places like ... Somalia or Yemen."
Yemen has witnessed an unprecedented number of attacks in 2008, Hayden said, including two against the U.S. Embassy. The sophistication of attacks and the range of targets are broadening. Hayden said that, like what has happened elsewhere, terrorist cells in Yemen "are operating from remote, tribal areas where the government has traditionally had very little authority."
That al-Qaida tends to gain strength only in isolated, ungoverned territories "may be the most damning thing we can say about this organization," Hayden said. It can subsist only beyond the reach of civilization and the reach of the rule of law.
HANDLING THE TRANSITION
As head of the CIA, Hayden's service may continue into the Obama administration, although frequently a new president appoints his own director. Asked about his interest in continuing in his present position - which includes conducting daily presidential intelligence briefings at the White House - the director said he serves at the pleasure of the president, but would consider staying if asked.
As this is the first wartime presidential transition for the United States in 40 years, some thought is being given by transition officials to keeping some Bush appointees, at least temporarily, so the transfer of power from one administration to another is as seamless as possible.
Hayden said members of the Bush administration have been directed to "make this the smoothest transition in recorded history." With the United States on a wartime footing and al-Qaida already having made a critical remark about President-elect Barack Obama on the Internet, the director said, efforts are under way to get a new team ready for any contingency as swiftly as possible "so that there is no diminution in the ability of the Republic to defend itself."
Video of the forum ( http://www.acus.org/event_blog/cia-director-event ) is available on the Atlantic Council Web site. A transcript of Hayden's remarks ( https://www.cia.gov/news-information/speeches-testimony/directors-remarks-at-the-atlantic-council.html ) is available on the CIA Web site.
For more information about U.S. policy, see Confronting Terrorism ( http://fpolicy.america.gov/fpolicy/security/counterterrorism.html) on America.gov.
Source: NewsBlaze
Hayden told the Washington-based Atlantic Council of the United States November 13 that the United States - in cooperation with partners such as Iraq, Saudi Arabia, Indonesia and the Philippines - has greatly diminished the reach of several terrorist groups.
Al-Qaida in Iraq, for example, "is on the verge of strategic defeat," with the flow of money, weapons and foreign fighters into Iraq now "greatly diminished," Hayden said.
And al-Qaida's operational arm in Saudi Arabia largely has been defeated, he said. Indonesia has made inroads in detecting and disrupting terrorist plots in the past three years as a result of what he called "aggressive action by one of our most effective counterterrorism partners." Filipino allies have kept the pressure on the Abu-Sayef group, Hayden said, limiting its effectiveness.
While the remote, tribal areas on the Afghanistan-Pakistan border remain problematic, progress has been made, according to the CIA director. He said the practice of terrorists taking refuge in Pakistan's Federally Administered Tribal Areas is lessening. Due to cooperation among the Pakistan government, its military and the U.S. intelligence community, terrorist networks have lost many "decision makers, commanders, experienced and committed fighters" who, Hayden said, planned attacks against Europe and the United States.
The Pakistani government and military "deserves great credit for its current campaign against extremists," he added. More al-Qaida leaders have been killed or captured "in partnership with our Pakistani allies than ... with any other partner around the world," Hayden said.
The CIA official cited another reason for optimism in the fight against terrorism: "Some hard-line religious leaders are speaking out against al-Qaida's tactics and its ideology." Hayden cited generic polling showing declining support for al-Qaida and Osama bin Laden in predominantly Muslim countries.
More and more Muslims "are pushing back against the senseless violence and flawed worldview of al-Qaida," he said. Credible, authentic, influential Islamic voices are speaking out and "refuting al-Qaida's twisted justification for murdering innocents" as well as its ideology seeking to erase the distinction between combatants and noncombatants.
Besides Pakistan and Indonesia, Hayden praised the counterterrorism efforts of other U.S. partners such as Saudi Arabia and Iraq. Military and law enforcement activities and even efforts addressing the conflict of ideas have resulted in improvements in the Middle East and Southeast Asia, he said. "I have always said that the civilized world will win this fight when we win the war of ideas," he added.
NEXT STEPS
Efforts to defeat al-Qaida in the near future will continue to center on Yemen, Somalia and the Afghan-Pakistan border, according to Hayden. Intelligence suggests that some veterans of terror operations in Iraq are now drifting to other regions, such as North Africa and the Arabian Peninsula, in search of new action.
Even though al-Qaida has suffered serious setbacks in Iraq, Afghanistan and Pakistan, the intelligence-agency director said, "it remains a determined, adaptive enemy." Al-Qaida is still "the most dangerous threat we face," he told the Atlantic Council's Global Intelligence Forum.
In Hayden's opinion, al-Qaida's base of operations on Pakistan's border with Afghanistan remains "the single most important factor today in the group's resilience and its ability to threaten the West." He contends that the remote, tribal areas along the Afghan-Pakistan border have supported terrorist financing, recruiting, training and plotting in the past.
While al-Qaida-related operations in the tribal regions do not rise to the level of activity that once existed in Afghanistan, Hayden said, its recent efforts to destabilize Pakistan are worrisome.
The Pakistani army has been fighting extremists "forcefully and with considerable success since early August," Hayden said. The Pakistanis have a multibrigade operation under way in the tribal area of Bajaur, and while they have sustained losses, "they are also imposing significant casualties on our common enemy."
But when al-Qaida is dealt a blow, Hayden said, its senor leadership recalibrates. "They constantly look for ways to make up for losses, extend their reach, take advantage of opportunities, and we're seeing that ... in some places like ... Somalia or Yemen."
Yemen has witnessed an unprecedented number of attacks in 2008, Hayden said, including two against the U.S. Embassy. The sophistication of attacks and the range of targets are broadening. Hayden said that, like what has happened elsewhere, terrorist cells in Yemen "are operating from remote, tribal areas where the government has traditionally had very little authority."
That al-Qaida tends to gain strength only in isolated, ungoverned territories "may be the most damning thing we can say about this organization," Hayden said. It can subsist only beyond the reach of civilization and the reach of the rule of law.
HANDLING THE TRANSITION
As head of the CIA, Hayden's service may continue into the Obama administration, although frequently a new president appoints his own director. Asked about his interest in continuing in his present position - which includes conducting daily presidential intelligence briefings at the White House - the director said he serves at the pleasure of the president, but would consider staying if asked.
As this is the first wartime presidential transition for the United States in 40 years, some thought is being given by transition officials to keeping some Bush appointees, at least temporarily, so the transfer of power from one administration to another is as seamless as possible.
Hayden said members of the Bush administration have been directed to "make this the smoothest transition in recorded history." With the United States on a wartime footing and al-Qaida already having made a critical remark about President-elect Barack Obama on the Internet, the director said, efforts are under way to get a new team ready for any contingency as swiftly as possible "so that there is no diminution in the ability of the Republic to defend itself."
Video of the forum ( http://www.acus.org/event_blog/cia-director-event ) is available on the Atlantic Council Web site. A transcript of Hayden's remarks ( https://www.cia.gov/news-information/speeches-testimony/directors-remarks-at-the-atlantic-council.html ) is available on the CIA Web site.
For more information about U.S. policy, see Confronting Terrorism ( http://fpolicy.america.gov/fpolicy/security/counterterrorism.html) on America.gov.
Source: NewsBlaze
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on Tuesday, May 15, 2012
The U.S. government organized a workshop in Jordan to teach officials from the Arab countries how to detect and investigate the smuggling of money.
The U.S. has been working with Jordan and other Arab countries to ensure that banking institutions are subject to appropriate oversight and that they have effective programs in place to prevent money-laundering and terrorist financing.
Participants, including representatives from Jordan, Algeria, Egypt, Kuwait, Lebanon, Mauritania, Morocco, Oman, the Palestinian Authority, Qatar, Tunisia and Yemen, examined anti-money laundering standards used by the Financial Action Task Force, a Paris-based inter-government body set up in 1989 by the Group of Eight industrialized nations.
This week, U.S. federal prosecutors said two NY residents were indicted on charges of trying to smuggle $500,000 (euro323,000) from the U.S. to Jordan.
Authorities said a grand jury in Hartford, Connecticut returned an indictment charging 35-year-old Hassan Abuzaitoun and 33-year-old Mohammad Alazzam with conspiracy to commit money laundering and conspiracy to smuggle bulk cash from the United States. Both are naturalized U.S. citizens from Jordan residing in Yonkers, New York.
Jordanian authorities have often asserted that Jordan was free of money laundering because of its strict monetary regulations and practices.
In 2004, three different groups of families of suicide bombing victims in Israel filed suits in a Brooklyn, N.Y. federal court against Jordan's largest financial institution _ Arab Bank _ alleging that it moved donations from Saudi Arabia to militant Palestinian groups, including Hamas and Islamic Jihad.
The bank denied the allegation. It later decided to close down its New York branch saying it was pursuing its strategy to focus on operations in the Arab world and Europe.
http://www.amlosphere.com/america/legislation/us-workshop-in-jordan-builds-support-to-battle-money-laundering.html
The U.S. has been working with Jordan and other Arab countries to ensure that banking institutions are subject to appropriate oversight and that they have effective programs in place to prevent money-laundering and terrorist financing.
Participants, including representatives from Jordan, Algeria, Egypt, Kuwait, Lebanon, Mauritania, Morocco, Oman, the Palestinian Authority, Qatar, Tunisia and Yemen, examined anti-money laundering standards used by the Financial Action Task Force, a Paris-based inter-government body set up in 1989 by the Group of Eight industrialized nations.
This week, U.S. federal prosecutors said two NY residents were indicted on charges of trying to smuggle $500,000 (euro323,000) from the U.S. to Jordan.
Authorities said a grand jury in Hartford, Connecticut returned an indictment charging 35-year-old Hassan Abuzaitoun and 33-year-old Mohammad Alazzam with conspiracy to commit money laundering and conspiracy to smuggle bulk cash from the United States. Both are naturalized U.S. citizens from Jordan residing in Yonkers, New York.
Jordanian authorities have often asserted that Jordan was free of money laundering because of its strict monetary regulations and practices.
In 2004, three different groups of families of suicide bombing victims in Israel filed suits in a Brooklyn, N.Y. federal court against Jordan's largest financial institution _ Arab Bank _ alleging that it moved donations from Saudi Arabia to militant Palestinian groups, including Hamas and Islamic Jihad.
The bank denied the allegation. It later decided to close down its New York branch saying it was pursuing its strategy to focus on operations in the Arab world and Europe.
http://www.amlosphere.com/america/legislation/us-workshop-in-jordan-builds-support-to-battle-money-laundering.html
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The Yemeni parliament is locked in a stand-off over a proposed new law that would crack down on money laundering and terrorist financing by merging the two crimes into one law.
A draft of the bill was introduced by Yemeni government to the parliament saying that the current laws of money laundering and financing terrorism are outdated and full of shortcomings dating back to 2003.
Opposition to the bill in the parliament contend that it would result in stifling charitable businesses and legal resistance by occupied Arab people. Members of parliament did, however, demand application of money laundering reform or amendments of the bill to be applied without merging the terrorism financing issue in the same bill.
“The existing legislation is sufficient,” said Member of Parliament, Sakher al-Wajeeh. “If the current law has deficiencies, it can be amended.”
The majority opposition in parliament says the proposed bill would restrict the work of charities and non-governmental organizations (NGO’s), causing more harm in fighting terrorism.
In Yemen, support of resistances in the Occupied Palestinian Territories are deemed to be legal ad justified actions, however most western states consider it to be terrorism, and the United Nations still cannot agree on a unified definition of terrorism. Al-Wajeeh suspects that the enemies of Islam link the religion with terrorism and claim by fighting Islam, they combat terroristic acts.
“There is no logical link of merging terrorism financing and money laundering because there is no unified definition of terrorism,” said Dr. Salah al-Sanabani, a member of parliament, adding, “the government should define terrorism according to our religion.”
According to the bill’s opposition, supporting this law to combat terrorism harms charitable and self-defense works by Islamic associations, especially resistance and charities in Palestine.
“Money laundering is still a problem in Yemen but has a very limited scope,” said Ahmed Ghalib, the head of the Committee for Combating Money Laundering and Funding Terrorism in Yemen. “Money laundering is possible due to loopholes and weaknesses in the banking system and from regulatory weaknesses. The line becomes blurred as illicit funds are recycled through legitimate business enterprises.”
The new law, according to supporters, aims to supplement the existing law from 2003. The old law did not include the rules of disclosure and dissemination found in the Council Security tracking and lists of terrorism financing crimes. The new law uses the definition terrorism from Arab Convention for Combating Terrorism ratified by the Yemeni Parliament.
By defining terrorism, supporters say that charitable funds can still make their way to causes supported by Yemenis without being accused of supporting it.
According to Ghalib, the new measures will introduce an element of conformity with international principles and standards. The bill was prepared by the Committee for Combating Money Laundering and Terrorism Funding in conjunction with the World Bank and the UN Office of Drugs and Crime, as well as consulting with representatives from the financial community. This was a recommendation by the Financial Action Task Force (FATF) and Arab and international conventions, as well as UN Security Council resolutions.
Mustafa Saif, head of the Money Laundering task force at the Central Bank of Yemen, said that the new draft law limits the amount of money that can be transferred from one bank account to another and international transfers. The law also calls for better monitoring of money transfers through corporations or other authorities. Previous laws did not include these measures.
The bill also says that any person who is found guilty of money laundering or financing terrorism may face imprisonment up to seven years and confiscation of the money to the public treasury.
At the end of the session, the parliament decided to form a committee to offer recommendations in terms of separating or merging financing terrorism with money laundering.
http://www.amlosphere.com/asia/legislation/terrorist-finance-bill-dead-locked-in-parliament.html
A draft of the bill was introduced by Yemeni government to the parliament saying that the current laws of money laundering and financing terrorism are outdated and full of shortcomings dating back to 2003.
Opposition to the bill in the parliament contend that it would result in stifling charitable businesses and legal resistance by occupied Arab people. Members of parliament did, however, demand application of money laundering reform or amendments of the bill to be applied without merging the terrorism financing issue in the same bill.
“The existing legislation is sufficient,” said Member of Parliament, Sakher al-Wajeeh. “If the current law has deficiencies, it can be amended.”
The majority opposition in parliament says the proposed bill would restrict the work of charities and non-governmental organizations (NGO’s), causing more harm in fighting terrorism.
In Yemen, support of resistances in the Occupied Palestinian Territories are deemed to be legal ad justified actions, however most western states consider it to be terrorism, and the United Nations still cannot agree on a unified definition of terrorism. Al-Wajeeh suspects that the enemies of Islam link the religion with terrorism and claim by fighting Islam, they combat terroristic acts.
“There is no logical link of merging terrorism financing and money laundering because there is no unified definition of terrorism,” said Dr. Salah al-Sanabani, a member of parliament, adding, “the government should define terrorism according to our religion.”
According to the bill’s opposition, supporting this law to combat terrorism harms charitable and self-defense works by Islamic associations, especially resistance and charities in Palestine.
“Money laundering is still a problem in Yemen but has a very limited scope,” said Ahmed Ghalib, the head of the Committee for Combating Money Laundering and Funding Terrorism in Yemen. “Money laundering is possible due to loopholes and weaknesses in the banking system and from regulatory weaknesses. The line becomes blurred as illicit funds are recycled through legitimate business enterprises.”
The new law, according to supporters, aims to supplement the existing law from 2003. The old law did not include the rules of disclosure and dissemination found in the Council Security tracking and lists of terrorism financing crimes. The new law uses the definition terrorism from Arab Convention for Combating Terrorism ratified by the Yemeni Parliament.
By defining terrorism, supporters say that charitable funds can still make their way to causes supported by Yemenis without being accused of supporting it.
According to Ghalib, the new measures will introduce an element of conformity with international principles and standards. The bill was prepared by the Committee for Combating Money Laundering and Terrorism Funding in conjunction with the World Bank and the UN Office of Drugs and Crime, as well as consulting with representatives from the financial community. This was a recommendation by the Financial Action Task Force (FATF) and Arab and international conventions, as well as UN Security Council resolutions.
Mustafa Saif, head of the Money Laundering task force at the Central Bank of Yemen, said that the new draft law limits the amount of money that can be transferred from one bank account to another and international transfers. The law also calls for better monitoring of money transfers through corporations or other authorities. Previous laws did not include these measures.
The bill also says that any person who is found guilty of money laundering or financing terrorism may face imprisonment up to seven years and confiscation of the money to the public treasury.
At the end of the session, the parliament decided to form a committee to offer recommendations in terms of separating or merging financing terrorism with money laundering.
http://www.amlosphere.com/asia/legislation/terrorist-finance-bill-dead-locked-in-parliament.html
on Wednesday, May 9, 2012
A federal grand jury has brought money-laundering charges against three Yemeni men for allegedly transferring money into overseas accounts they believed were controlled by the Islamic terrorist organization Hezbollah.
The charges were brought against Yehia Ali Ahmed Alomari, 27; Mohamed Al Huraibi, 41; and Saleh Mohamed Taher Saeed, 28, who ran mini-marts in southwest and northeast Rochester.
The indictment, handed up Wednesday, alleges money laundering and conspiracy to commit money laundering.
The three were arrested in March 2007 and are in federal custody. They were indicted after attempts at plea negotiations failed.
If convicted, Alomari, Al Huraibi and Saeed face up to 20 years in prison and a $250,000 fine, U.S. Attorney Terrance P. Flynn said.
The U.S. Immigration and Customs Enforcement began an investigation in January 2005 after banking records showed that a Social Security number assigned to Saeed was associated with 324 overseas currency transactions totaling $12.3 million from October 2002 through November 2004.
An undercover officer from the immigration agency allegedly arranged with Alomari, Al Huraibi and Saeed to send $100,000 to overseas accounts which the officer maintained were controlled by Hezbollah, the prosecution said. The officer claimed the money had been earned through illegal activities, the prosecution said.
The charges don’t allege that Alomari, Al Huraibi and Saeed had connections to Hezbollah, but knowingly sent money to accounts they believed were controlled by the organization. The accounts were actually controlled by the federal government.
http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080508/NEWS01/80508022/1002/NEWS
The charges were brought against Yehia Ali Ahmed Alomari, 27; Mohamed Al Huraibi, 41; and Saleh Mohamed Taher Saeed, 28, who ran mini-marts in southwest and northeast Rochester.
The indictment, handed up Wednesday, alleges money laundering and conspiracy to commit money laundering.
The three were arrested in March 2007 and are in federal custody. They were indicted after attempts at plea negotiations failed.
If convicted, Alomari, Al Huraibi and Saeed face up to 20 years in prison and a $250,000 fine, U.S. Attorney Terrance P. Flynn said.
The U.S. Immigration and Customs Enforcement began an investigation in January 2005 after banking records showed that a Social Security number assigned to Saeed was associated with 324 overseas currency transactions totaling $12.3 million from October 2002 through November 2004.
An undercover officer from the immigration agency allegedly arranged with Alomari, Al Huraibi and Saeed to send $100,000 to overseas accounts which the officer maintained were controlled by Hezbollah, the prosecution said. The officer claimed the money had been earned through illegal activities, the prosecution said.
The charges don’t allege that Alomari, Al Huraibi and Saeed had connections to Hezbollah, but knowingly sent money to accounts they believed were controlled by the organization. The accounts were actually controlled by the federal government.
http://www.democratandchronicle.com/apps/pbcs.dll/article?AID=/20080508/NEWS01/80508022/1002/NEWS
Money laundering and embezzlement, sometimes as part of drug trade, is still a problem in Yemen, but it is limited in scope, said Mustafa Saif, the head of the Committee for Combating money Laundering and funding terrorism. “We have heard about crimes of seized many quantities of drugs, so unfortunately there are crimes of money laundering in Yemen,” he said. “We have law of money laundering that issued in 2003, but we are in need for more combating of money laundering and funding terrorism.”
To aid the fight, the Committee for Combating Money Laundering and Combating the Funding of Terrorism has finalized a new draft law in cooperation with World Bank and United Nations Office on Drugs and Crime, the head of the committee Mustafa Saif said on Saturday. The new draft law limits the amount of money that can be transferred from one bank account to another, and from inside the country to outside the country, and vice versa. The law also calls for better monitoring of money transfers through corporations or other authorities. Previous laws did not include these measures. “The draft is under final revision and, the committee achieved the first phase of evaluation of Yemen’s efforts to combat money laundering and funding terror,” said Saif.
The new law is now ready to be sent to Parliament, said Saif. It has already been examined by the international committee dedicated to fighting money laundering. As part of the evaluation process, the Working Group of the Middle East and North Africa to Yemen, sent a questionnaire about money laundering efforts in Yemen to the Central Bank of Yemen, in order to find out how it was doing at battling these problems.
The Working Group of the Middle East and North Africa is expected visit Yemen next month and pay field visits to all supervisory official and private bodies on combating money laundering and funding terror, to study the strengths and weakness in systems of those bodies and ask national authorities to prepare draft report of the joint evaluation.” The draft report would be discussed next April, 2008 in the meeting of the group that would be attended by all members of the group to evaluate system of combating these acts and its effect in each country, he said.
http://www.yobserver.com/business-and-economy/10012544.html
To aid the fight, the Committee for Combating Money Laundering and Combating the Funding of Terrorism has finalized a new draft law in cooperation with World Bank and United Nations Office on Drugs and Crime, the head of the committee Mustafa Saif said on Saturday. The new draft law limits the amount of money that can be transferred from one bank account to another, and from inside the country to outside the country, and vice versa. The law also calls for better monitoring of money transfers through corporations or other authorities. Previous laws did not include these measures. “The draft is under final revision and, the committee achieved the first phase of evaluation of Yemen’s efforts to combat money laundering and funding terror,” said Saif.
The new law is now ready to be sent to Parliament, said Saif. It has already been examined by the international committee dedicated to fighting money laundering. As part of the evaluation process, the Working Group of the Middle East and North Africa to Yemen, sent a questionnaire about money laundering efforts in Yemen to the Central Bank of Yemen, in order to find out how it was doing at battling these problems.
The Working Group of the Middle East and North Africa is expected visit Yemen next month and pay field visits to all supervisory official and private bodies on combating money laundering and funding terror, to study the strengths and weakness in systems of those bodies and ask national authorities to prepare draft report of the joint evaluation.” The draft report would be discussed next April, 2008 in the meeting of the group that would be attended by all members of the group to evaluate system of combating these acts and its effect in each country, he said.
http://www.yobserver.com/business-and-economy/10012544.html
on Tuesday, May 1, 2012
SANA'A, June 30 (Saba)- The Committee of Anti-Money Laundering and Combating the Funding of Terror has finalized its pertinent draft law in cooperation with World Bank and United Nations Office on Drugs and Crime (UNODC), the head of the committee Mustafa Saif said on Saturday.
"The draft is under final revision," Saif said. He made it clear that the committee achieved the first phase of evaluation of Yemen efforts in combating acts of money laundering and funding terror.
The phase contains offering laws, documents and required statistics according to international principles and standards of fighting these acts, he said.
Head of the committee added that the phase includes a questionnaire presented by the Working Group of the Middle East and North Africa to Yemen about efforts taken by Yemen to combat these acts.
He pointed out that the team of the group would visit Yemen next month and pay field visits to all supervision official and private bodies on combating money laundering and funding terror to study aspect of strength and weakness in systems of those bodies and ask national authorities to prepare draft report of the joint evaluation."
The draft report would be discussed next April, 2008 in the meeting of the group that would be attended by all members of the group," he said, adding that the aim of the joint report is to evaluate system of combating these acts and its effect in each country.
http://www.sabanews.net/view.php?scope=f9129&dr=&ir=&id=133870
"The draft is under final revision," Saif said. He made it clear that the committee achieved the first phase of evaluation of Yemen efforts in combating acts of money laundering and funding terror.
The phase contains offering laws, documents and required statistics according to international principles and standards of fighting these acts, he said.
Head of the committee added that the phase includes a questionnaire presented by the Working Group of the Middle East and North Africa to Yemen about efforts taken by Yemen to combat these acts.
He pointed out that the team of the group would visit Yemen next month and pay field visits to all supervision official and private bodies on combating money laundering and funding terror to study aspect of strength and weakness in systems of those bodies and ask national authorities to prepare draft report of the joint evaluation."
The draft report would be discussed next April, 2008 in the meeting of the group that would be attended by all members of the group," he said, adding that the aim of the joint report is to evaluate system of combating these acts and its effect in each country.
http://www.sabanews.net/view.php?scope=f9129&dr=&ir=&id=133870
on Thursday, April 12, 2012
By Jane Novak
Yemeni President Ali Abdullah Saleh recently struck a deal with Ayman Zawahiri, and Yemen is in the process of emptying its jails of known jihadists. The Yemeni government is recruiting these established jihadists to attack its domestic enemies as it refrains from serious counter-terror measures against the newly formed Al Qaeda in the Arabian Peninsula. The tripartite relationship between the Yemeni regime and al Qaeda enables all participants to further their goals at the expense of national, regional, and global security.
Yemen releases 95 jihadists
News reports from Yemen detail a meeting in Sana'a between President Saleh and a number of so-called reformed jihadists late January. The militants demanded freedom for imprisoned associates. A presidential committee identified 170 jihadists eligible for release, and 95 were released Saturday. Other reports indicate that authorities have cleared for release a total of 300 of the 400 total suspected al Qaeda in prison.
In the latest round of negotiations, Saleh reportedly asked the militants to engage in violence against the southern mobility movement. The southern uprising is bent on achieving the independence of South Yemen and is a substantial threat to Saleh's grip on power. Tariq al Fahdli was present at the meeting, and at a later meeting in Abyan, militants brandished an official order directing the military to supply the mercenary group with arms and ammunition. Fahdli fought alongside bin Laden in Afghanistan and has been accused of complicity in the 1992 Aden hotel bombing, the first al Qaeda attack that targeted American troops. Fahdli's sister is married to Brigadier General Ali Mohsen al Ahmar, President Saleh's half brother and a recruiter for bin Laden in the 1980s.
President Saleh deployed Fahdli and other Afghan Arabs against southern Socialists in 1994's civil war. Some bin Laden loyalists were rewarded with high positions in the administration and military after the 1994 civil war. More recently, General al Ahmar incorporated Sunni extremists into military ranks during the 2004-2008 Saada War against Shiite "Houthi" rebels. Militants legitimize both the 1994 and Saada deployments by referencing the "apostate" nature of the enemy. This task is made easier by the official media's description of both Socialists and Shiites as satanic.
The deployment of al Qaeda extremists as a government paramilitary affords the jihadists training, experience, contacts, financial benefit, and the ability to dictate to the regime and indoctrinate followers. Many are awarded military salaries and official positions. After years of integrating militants into Yemen's security forces and bureaucracy, aspects of the state have been co-opted by extremists.
Direct negotiations between the Yemeni president and al Qaeda operatives grew out of Yemen's "Dialog Program" established in 2002. Through discussion of the Koran, the program sought to gain assurances that jihadists would not launch assaults within Yemen but said nothing about the Islamic legitimacy of attacks on US troops in Iraq. The program ran until 2005 and was described by some participants as an expedited release program.
In 2005, President Saleh began openly negotiating with the jihadists. One such negotiation in 2006 was conducted by Saleh and the head of Yemen's Political Security Organization. The jihadists' representative was Rashad Mohammed Saeed (Abu al Feida), formerly a major figure in al Qaeda and the Taliban who has been seen in videos near Osama Bin Laden.
Saeed later described the outcome of the meeting with Saleh. "It was also agreed to cancel measures imposed on those who are released, like house arrest, the monthly signing of official register and taking permission if you wish to go another province in Yemen," he said. In 2006, Saeed praised Yemen as "the best country" to deal with militants and noted "The Yemeni government will not enter open confrontations with Mujahideen."
President Saleh has also arranged state jobs, cars, cash payments and even weddings for militants who pledged to follow the regime's dictates. Officials spin these negotiations as fostering rehabilitation and integration into society.
In January 2008, a spokesman for an al Qaeda cell in Yemen said the government had recruited some of its members to fight in the Saada War. In exchange, the security forces agreed to "ease the persecution of (al Qaeda) members." Ahmed Mansour said the group is and has been in contact with the government through intermediaries, adding bin Laden ordered a ban on attacks directed against the regime and that the US remains enemy number one. Other al Qaeda insiders who reference bin Laden's prohibition on assaults against Saleh's government include Nasser al Bahri (Abu Jandal), bin Laden's longtime bodyguard, and Rashad Saeed.
Al Qaeda Central
Another prong of President Saleh's tripartite relation with al Qaeda is with the group's central leadership, thought to currently be in Afghanistan or Pakistan. Yemen supplied thousands of recruits to the Afghan jihad in the 1980s, and Yemenis were among the top ranks in the organization, as well as forming the core of personnel who were guarding, feeding, and transporting bin Laden. Saleh welcomed thousands of Yemeni and non-Yemeni jihadists from Afghanistan after the withdrawal of the Soviets. Ayman Zawahiri and Osama bin Laden frequently visited and preached in Yemen in the 1990s and have many loyalists among Yemeni government ranks.
A long-standing pattern of negotiation exists. After al Qaeda operative Khallad bin Attash was arrested in Yemen in 1999, bin Laden contacted a Yemeni official and bargained for Attash's release. The Yemeni regime released Attash and promised not to confront al Qaeda. In exchange, bin Laden pledged not to attack the government. Attash later went on the play a role in the USS Cole bombing. Another round of negotiation appears to have taken place 2003 in which regime concessions resulted in immunity from attack.
A current agreement between Yemen's President Saleh and the al Qaeda terror group was referenced in a report here at The Long War Journal detailing communication between Ayman Zawahiri and President Saleh after September's embassy attack. A US military official reported that "Saleh feared his government would be the next target, but Zawahiri wanted al Qaeda prisoners released from Yemeni jails and committed al Qaeda foot soldiers to fight the Houthi rebels."
Active Jihadists
Although Yemen formally joined the US-led War on Terror after the Sept. 11 attacks, the Yemeni regime has facilitated jihadists' efforts externally, sheltered fighters internally, and repeatedly misled the US about their whereabouts and status. In early 2007, a Yemeni newspaper tallied 1800 Yemenis who traveled to Iraq for jihad; their families said the young men were trained by top level Yemeni military commanders.
Yemeni courts fail to criminalize attacks on US troops or civilians abroad. In a 2006 trial of 13 jihadists who fought in Iraq, the court found that it is not against Yemeni law to murder foreign nationals in "occupied" Muslim nations. Although the defendants admitted to fighting US and Iraqi forces, they faced no judicial penalty and were convicted only of document fraud.
Yemen refuses to extradite or imprison the al Qaeda operatives convicted of the terror attack on the USS Cole. President Saleh has been equally lenient with those convicted of attacks on tourists and oil facilities. Several were granted "house arrest" after escaping from prison. Yemen's banking system lacks the legal framework to criminalize terrorist financing.
Some analysts assert that some of the terror attacks since 2006 were orchestrated by Yemen's security forces in a bid to manipulate international perceptions or overshadow domestic political crises. One of Yemen's most wanted terrorists, Hamza Ali Saleh al Dhayiuani, said "I am ready to prove the reality that some attacks were planned in co-ordination and agreement of the Political Security and its agents to gain foreign support."
In November 2008, Al Quds Al Arabi carried an interview with a former terrorist in Yemen who was described as "very close to al Qaeda". The senior jihadi reported that the terrorist organization has entered a "positive phase" in planning an attack against the US that will "outdo by far" Sept. 11. Al Quds Al Arabi previously published bin Laden's 1998 fatwa against the US. The Yemeni former operative reported that he is contact with the current leaders of the organization in Yemen who in turn receive messages from bin Laden.
Al Qaida groups in Yemen and Saudi Arabia formally merged operations in January, under the name al Qaeda in the Arabian Peninsula (AQAP). The group announced the merger at a press conference attended by a single journalist, Abdulea Shaya, employed as a researcher by the state news agency, SABA. The group was acknowledged by Ayman Zawahiri in a statement. AQAP is based in Yemen. Its leader is a Yemeni, Nasser al Wahishi, who was a close associate of Osama bin Laden in Afghanistan. AQAP vowed to strike at Western interests and supply routes across the region. The new group and its broad goals appear to be a strategic development on the part of al Qaeda Central in furtherance of its global strategy.
The stated goals of AQAP mirror an April 2008 statement by Al Qaeda's central leadership which said establishing naval terror cells and control of the seas around Yemen is a "vital step" in achieving a global caliphate. The Bab al Mandeb waterway and Gulf of Aden were termed "of supreme strategic importance" in al Qaeda's long-term plan. The April statement highlighted the attacks on the USS Cole in 2001 and the French tanker Limburg in 2002 in Port Aden.
In response to the formation of AQAP, Saleh's regime made several announcements of its intent to find the group's hideout. Saleh called on tribal leaders and citizens to turn in the militants. Officials accused the opposition parties of supporting al Qaeda in an attempt to overthrow the state. Security forces set up checkpoints, engaged in hunting activities, and beat a man named al Zaheri because his name was similar to the al Qaeda chieftain's.
AQAP issued a communiqué explaining the unique configuration to its local members and legitimized fighting for the state by referencing the 1994 war. A copy of the letter was obtained by News Yemen. Echoing the earlier agreement by Saleh and Zawahiri late in 2008, Al Qaeda in the Arabian Peninsula explained to its followers that President Saleh wants jihadists to fight on behalf of the state, especially those who did already in 1994, against the enemies of unity-- southern oppositionists. AQAP in return will gain prison releases and unimpeded travel to external theaters of jihad, the letter explained.
Source: The Long War Journal
Yemeni President Ali Abdullah Saleh recently struck a deal with Ayman Zawahiri, and Yemen is in the process of emptying its jails of known jihadists. The Yemeni government is recruiting these established jihadists to attack its domestic enemies as it refrains from serious counter-terror measures against the newly formed Al Qaeda in the Arabian Peninsula. The tripartite relationship between the Yemeni regime and al Qaeda enables all participants to further their goals at the expense of national, regional, and global security.
Yemen releases 95 jihadists
News reports from Yemen detail a meeting in Sana'a between President Saleh and a number of so-called reformed jihadists late January. The militants demanded freedom for imprisoned associates. A presidential committee identified 170 jihadists eligible for release, and 95 were released Saturday. Other reports indicate that authorities have cleared for release a total of 300 of the 400 total suspected al Qaeda in prison.
In the latest round of negotiations, Saleh reportedly asked the militants to engage in violence against the southern mobility movement. The southern uprising is bent on achieving the independence of South Yemen and is a substantial threat to Saleh's grip on power. Tariq al Fahdli was present at the meeting, and at a later meeting in Abyan, militants brandished an official order directing the military to supply the mercenary group with arms and ammunition. Fahdli fought alongside bin Laden in Afghanistan and has been accused of complicity in the 1992 Aden hotel bombing, the first al Qaeda attack that targeted American troops. Fahdli's sister is married to Brigadier General Ali Mohsen al Ahmar, President Saleh's half brother and a recruiter for bin Laden in the 1980s.
President Saleh deployed Fahdli and other Afghan Arabs against southern Socialists in 1994's civil war. Some bin Laden loyalists were rewarded with high positions in the administration and military after the 1994 civil war. More recently, General al Ahmar incorporated Sunni extremists into military ranks during the 2004-2008 Saada War against Shiite "Houthi" rebels. Militants legitimize both the 1994 and Saada deployments by referencing the "apostate" nature of the enemy. This task is made easier by the official media's description of both Socialists and Shiites as satanic.
The deployment of al Qaeda extremists as a government paramilitary affords the jihadists training, experience, contacts, financial benefit, and the ability to dictate to the regime and indoctrinate followers. Many are awarded military salaries and official positions. After years of integrating militants into Yemen's security forces and bureaucracy, aspects of the state have been co-opted by extremists.
Direct negotiations between the Yemeni president and al Qaeda operatives grew out of Yemen's "Dialog Program" established in 2002. Through discussion of the Koran, the program sought to gain assurances that jihadists would not launch assaults within Yemen but said nothing about the Islamic legitimacy of attacks on US troops in Iraq. The program ran until 2005 and was described by some participants as an expedited release program.
In 2005, President Saleh began openly negotiating with the jihadists. One such negotiation in 2006 was conducted by Saleh and the head of Yemen's Political Security Organization. The jihadists' representative was Rashad Mohammed Saeed (Abu al Feida), formerly a major figure in al Qaeda and the Taliban who has been seen in videos near Osama Bin Laden.
Saeed later described the outcome of the meeting with Saleh. "It was also agreed to cancel measures imposed on those who are released, like house arrest, the monthly signing of official register and taking permission if you wish to go another province in Yemen," he said. In 2006, Saeed praised Yemen as "the best country" to deal with militants and noted "The Yemeni government will not enter open confrontations with Mujahideen."
President Saleh has also arranged state jobs, cars, cash payments and even weddings for militants who pledged to follow the regime's dictates. Officials spin these negotiations as fostering rehabilitation and integration into society.
In January 2008, a spokesman for an al Qaeda cell in Yemen said the government had recruited some of its members to fight in the Saada War. In exchange, the security forces agreed to "ease the persecution of (al Qaeda) members." Ahmed Mansour said the group is and has been in contact with the government through intermediaries, adding bin Laden ordered a ban on attacks directed against the regime and that the US remains enemy number one. Other al Qaeda insiders who reference bin Laden's prohibition on assaults against Saleh's government include Nasser al Bahri (Abu Jandal), bin Laden's longtime bodyguard, and Rashad Saeed.
Al Qaeda Central
Another prong of President Saleh's tripartite relation with al Qaeda is with the group's central leadership, thought to currently be in Afghanistan or Pakistan. Yemen supplied thousands of recruits to the Afghan jihad in the 1980s, and Yemenis were among the top ranks in the organization, as well as forming the core of personnel who were guarding, feeding, and transporting bin Laden. Saleh welcomed thousands of Yemeni and non-Yemeni jihadists from Afghanistan after the withdrawal of the Soviets. Ayman Zawahiri and Osama bin Laden frequently visited and preached in Yemen in the 1990s and have many loyalists among Yemeni government ranks.
A long-standing pattern of negotiation exists. After al Qaeda operative Khallad bin Attash was arrested in Yemen in 1999, bin Laden contacted a Yemeni official and bargained for Attash's release. The Yemeni regime released Attash and promised not to confront al Qaeda. In exchange, bin Laden pledged not to attack the government. Attash later went on the play a role in the USS Cole bombing. Another round of negotiation appears to have taken place 2003 in which regime concessions resulted in immunity from attack.
A current agreement between Yemen's President Saleh and the al Qaeda terror group was referenced in a report here at The Long War Journal detailing communication between Ayman Zawahiri and President Saleh after September's embassy attack. A US military official reported that "Saleh feared his government would be the next target, but Zawahiri wanted al Qaeda prisoners released from Yemeni jails and committed al Qaeda foot soldiers to fight the Houthi rebels."
Active Jihadists
Although Yemen formally joined the US-led War on Terror after the Sept. 11 attacks, the Yemeni regime has facilitated jihadists' efforts externally, sheltered fighters internally, and repeatedly misled the US about their whereabouts and status. In early 2007, a Yemeni newspaper tallied 1800 Yemenis who traveled to Iraq for jihad; their families said the young men were trained by top level Yemeni military commanders.
Yemeni courts fail to criminalize attacks on US troops or civilians abroad. In a 2006 trial of 13 jihadists who fought in Iraq, the court found that it is not against Yemeni law to murder foreign nationals in "occupied" Muslim nations. Although the defendants admitted to fighting US and Iraqi forces, they faced no judicial penalty and were convicted only of document fraud.
Yemen refuses to extradite or imprison the al Qaeda operatives convicted of the terror attack on the USS Cole. President Saleh has been equally lenient with those convicted of attacks on tourists and oil facilities. Several were granted "house arrest" after escaping from prison. Yemen's banking system lacks the legal framework to criminalize terrorist financing.
Some analysts assert that some of the terror attacks since 2006 were orchestrated by Yemen's security forces in a bid to manipulate international perceptions or overshadow domestic political crises. One of Yemen's most wanted terrorists, Hamza Ali Saleh al Dhayiuani, said "I am ready to prove the reality that some attacks were planned in co-ordination and agreement of the Political Security and its agents to gain foreign support."
In November 2008, Al Quds Al Arabi carried an interview with a former terrorist in Yemen who was described as "very close to al Qaeda". The senior jihadi reported that the terrorist organization has entered a "positive phase" in planning an attack against the US that will "outdo by far" Sept. 11. Al Quds Al Arabi previously published bin Laden's 1998 fatwa against the US. The Yemeni former operative reported that he is contact with the current leaders of the organization in Yemen who in turn receive messages from bin Laden.
Al Qaida groups in Yemen and Saudi Arabia formally merged operations in January, under the name al Qaeda in the Arabian Peninsula (AQAP). The group announced the merger at a press conference attended by a single journalist, Abdulea Shaya, employed as a researcher by the state news agency, SABA. The group was acknowledged by Ayman Zawahiri in a statement. AQAP is based in Yemen. Its leader is a Yemeni, Nasser al Wahishi, who was a close associate of Osama bin Laden in Afghanistan. AQAP vowed to strike at Western interests and supply routes across the region. The new group and its broad goals appear to be a strategic development on the part of al Qaeda Central in furtherance of its global strategy.
The stated goals of AQAP mirror an April 2008 statement by Al Qaeda's central leadership which said establishing naval terror cells and control of the seas around Yemen is a "vital step" in achieving a global caliphate. The Bab al Mandeb waterway and Gulf of Aden were termed "of supreme strategic importance" in al Qaeda's long-term plan. The April statement highlighted the attacks on the USS Cole in 2001 and the French tanker Limburg in 2002 in Port Aden.
In response to the formation of AQAP, Saleh's regime made several announcements of its intent to find the group's hideout. Saleh called on tribal leaders and citizens to turn in the militants. Officials accused the opposition parties of supporting al Qaeda in an attempt to overthrow the state. Security forces set up checkpoints, engaged in hunting activities, and beat a man named al Zaheri because his name was similar to the al Qaeda chieftain's.
AQAP issued a communiqué explaining the unique configuration to its local members and legitimized fighting for the state by referencing the 1994 war. A copy of the letter was obtained by News Yemen. Echoing the earlier agreement by Saleh and Zawahiri late in 2008, Al Qaeda in the Arabian Peninsula explained to its followers that President Saleh wants jihadists to fight on behalf of the state, especially those who did already in 1994, against the enemies of unity-- southern oppositionists. AQAP in return will gain prison releases and unimpeded travel to external theaters of jihad, the letter explained.
Source: The Long War Journal
on Tuesday, March 20, 2012
Technical Assistant Committee of Anti-Money Laundering and Terrorism Financing Committee will organize a workshop in the domain of combating money laundering and the financing of terrorism during 21-22 June.
The participants from relevant government authorities, commercial banks, Islamic banks, money exchange companies, non-financial institutions and professions involved will be participating during the workshop.
In a statement to Saba, Chairman of Anti-Money Laundering Committee Ahmed Ghaleb said the workshop will discuss identification of money laundering and terrorism financing in accordance with international criteria, and risks and role of banks in anti-money laundering.
Ghaleb said that they will review, during the workshop, exerted efforts of local, regional and international, information-gathering unit and the role of supervisory control agencies.
He pointed out that the workshop comes within implementation approved by the supervising committee including work plans for improving anti-money laundering and terrorist financing.
Source: SABA.NET
The participants from relevant government authorities, commercial banks, Islamic banks, money exchange companies, non-financial institutions and professions involved will be participating during the workshop.
In a statement to Saba, Chairman of Anti-Money Laundering Committee Ahmed Ghaleb said the workshop will discuss identification of money laundering and terrorism financing in accordance with international criteria, and risks and role of banks in anti-money laundering.
Ghaleb said that they will review, during the workshop, exerted efforts of local, regional and international, information-gathering unit and the role of supervisory control agencies.
He pointed out that the workshop comes within implementation approved by the supervising committee including work plans for improving anti-money laundering and terrorist financing.
Source: SABA.NET
on Thursday, March 1, 2012
Three Yemeni businessmen in western New York have pleaded guilty to money laundering charges, ending their federal court trial.
The men were charged in March 2007 after authorities said they sent $200,000 overseas knowing it was illegally obtained and could benefit the Lebanese militant group Hezbollah, which has fought Israel since the early 1980s and is considered by Israel and the United States to be a terrorist organization. The men weren't charged with any terrorism-related crimes.
On trial were Yehia Ali Ahmed Alomari, Mohamed Al Huraibi and Saleh Mohamed Taher Saeed. They ran mini-marts and a restaurant in Rochester.
Under Friday's plea agreements, the men face sentences ranging from 15 to 27 months. They remain free until they're sentenced in December.
Defense lawyers say the men thought the money was simply to help fellow Yemenis.
Source: The Associated Press
The men were charged in March 2007 after authorities said they sent $200,000 overseas knowing it was illegally obtained and could benefit the Lebanese militant group Hezbollah, which has fought Israel since the early 1980s and is considered by Israel and the United States to be a terrorist organization. The men weren't charged with any terrorism-related crimes.
On trial were Yehia Ali Ahmed Alomari, Mohamed Al Huraibi and Saleh Mohamed Taher Saeed. They ran mini-marts and a restaurant in Rochester.
Under Friday's plea agreements, the men face sentences ranging from 15 to 27 months. They remain free until they're sentenced in December.
Defense lawyers say the men thought the money was simply to help fellow Yemenis.
Source: The Associated Press
on Tuesday, January 31, 2012
by Matthew Levitt and Michael Jacobson
The terrorist attacks on the transit system in London in July 2005 killed 52 innocent people but only cost about $15,000 to carry out. The 2000 attack on the U.S. destroyer Cole in Yemen and the 2004 train attacks in Madrid, Spain, set the terrorists back about $10,000 each. Even the 9/11 attacks — the largest-scale terrorist plot in history — cost less than $500,000, according to the 9/11 Commission report. Unfortunately, cutting off all funding for terrorist organizations is next to impossible, making efforts to combat terrorism financing seem a fruitless exercise, particularly with devastating terrorist attacks being so cheap to mount.
But the Obama administration would be wise to retain targeting of terrorists' financing as a key part of the U.S. government's counter-terrorism tool kit.
Though mounting a terrorist attack is relatively inexpensive, the cost of maintaining a terrorist infrastructure is high. Terrorist networks need cash to train, equip and pay operatives and their families, and to promote their causes. Recruiting, training, traveling, bribing corrupt officials and other such activities also cost money. Limiting their ability to raise funds therefore limits their ability to function.
Before 9/11, al Qaeda's annual budget was an estimated $30 million, according to the CIA. And documents seized by the U.S. military indicate that al Qaeda in Iraq, or AQI, has also been expensive to run. One of its branches spent about $175,000 over four months in 2007 — with only about half going to weapons.
Perhaps a better indicator of the importance of money to these networks is how much attention finances command from the terrorist groups themselves. Sheikh Sa'id, the head of al Qaeda's finance committee in 2001, was "notoriously tightfisted," according to a 9/11 commission report, even vetoing an expense for an operative's trip to Saudi Arabia to obtain a U.S. visa for the 9/11 plot. Osama bin Laden was forced to step in and overrule Sa'id.
This frugal approach permeates al Qaeda even at the operational level. The 9/11 hijackers returned $26,000 in unused funds, viewing the money as "blessed and honored."
AQI takes the same approach to financial matters — putting management controls in place to ensure that money was being spent carefully. Operatives were required to provide signed forms, acknowledging funds they received and justifying their expenditure.
AQI tracked expenses down to the dollar. Seized documents show that AQI's border emirate spent $727 on food during a two-month period, in addition to tracking funding for salaries, weapons, document forgery and smuggling costs. Given the security risks of maintaining such an extensive paper trail, it is clear that AQI's leaders attach great importance to the organization's financial state.
Efforts to disrupt terrorist groups' finances can have a real effect. In a May 2007 al Qaeda video, Sa'id noted the group's precarious financial state: "As for the needs of the jihad in Afghanistan, the first of them is financial. The mujahedin of the Taliban number in the thousands, but they lack funds. And there are hundreds wishing to carry out martyrdom-seeking operations, but they can't find the funds to equip themselves. So funding is the mainstay of jihad."
Perhaps even more important than cutting off funding to terrorist groups may be the benefits of financial intelligence — better known as "following the money." Definitively linking people with numbered accounts or specific money changers is a powerful pre-emptive tool.
British authorities foiled a plot in the summer of 2006 to blow up airplanes over the Atlantic, thanks in large part to critical intelligence about the money trail. Financial intelligence also played an important role in the investigation leading to the capture of Hambali, Jemaah Islamiyah's operations chief — the mastermind of the 2002 Bali bombings.
And though following the money will not stop all attacks, it can frustrate terrorist activity. In 1995, captured World Trade Center bomber Ramzi Ahmed Yousef was flown over the twin towers on his way to a New York jail. When an FBI agent pointed out that the towers were still standing, Yousef replied, "They wouldn't be if I had enough money and explosives."
Ultimately, combating terrorist financing will not, in and of itself, defeat terrorism. But when employed as part of a broader strategy, it represents a powerful weapon in tackling the terrorist threat facing the nation today.
Levitt directs of the Stein Program on Counter-terrorism and Intelligence at the Washington Institute for Near East Policy. Jacobson is a senior fellow in the program. They authored of the recent study 'The Money Trail: Finding, Following and Freezing Terrorist Finances.'
Source: Statesman
The terrorist attacks on the transit system in London in July 2005 killed 52 innocent people but only cost about $15,000 to carry out. The 2000 attack on the U.S. destroyer Cole in Yemen and the 2004 train attacks in Madrid, Spain, set the terrorists back about $10,000 each. Even the 9/11 attacks — the largest-scale terrorist plot in history — cost less than $500,000, according to the 9/11 Commission report. Unfortunately, cutting off all funding for terrorist organizations is next to impossible, making efforts to combat terrorism financing seem a fruitless exercise, particularly with devastating terrorist attacks being so cheap to mount.
But the Obama administration would be wise to retain targeting of terrorists' financing as a key part of the U.S. government's counter-terrorism tool kit.
Though mounting a terrorist attack is relatively inexpensive, the cost of maintaining a terrorist infrastructure is high. Terrorist networks need cash to train, equip and pay operatives and their families, and to promote their causes. Recruiting, training, traveling, bribing corrupt officials and other such activities also cost money. Limiting their ability to raise funds therefore limits their ability to function.
Before 9/11, al Qaeda's annual budget was an estimated $30 million, according to the CIA. And documents seized by the U.S. military indicate that al Qaeda in Iraq, or AQI, has also been expensive to run. One of its branches spent about $175,000 over four months in 2007 — with only about half going to weapons.
Perhaps a better indicator of the importance of money to these networks is how much attention finances command from the terrorist groups themselves. Sheikh Sa'id, the head of al Qaeda's finance committee in 2001, was "notoriously tightfisted," according to a 9/11 commission report, even vetoing an expense for an operative's trip to Saudi Arabia to obtain a U.S. visa for the 9/11 plot. Osama bin Laden was forced to step in and overrule Sa'id.
This frugal approach permeates al Qaeda even at the operational level. The 9/11 hijackers returned $26,000 in unused funds, viewing the money as "blessed and honored."
AQI takes the same approach to financial matters — putting management controls in place to ensure that money was being spent carefully. Operatives were required to provide signed forms, acknowledging funds they received and justifying their expenditure.
AQI tracked expenses down to the dollar. Seized documents show that AQI's border emirate spent $727 on food during a two-month period, in addition to tracking funding for salaries, weapons, document forgery and smuggling costs. Given the security risks of maintaining such an extensive paper trail, it is clear that AQI's leaders attach great importance to the organization's financial state.
Efforts to disrupt terrorist groups' finances can have a real effect. In a May 2007 al Qaeda video, Sa'id noted the group's precarious financial state: "As for the needs of the jihad in Afghanistan, the first of them is financial. The mujahedin of the Taliban number in the thousands, but they lack funds. And there are hundreds wishing to carry out martyrdom-seeking operations, but they can't find the funds to equip themselves. So funding is the mainstay of jihad."
Perhaps even more important than cutting off funding to terrorist groups may be the benefits of financial intelligence — better known as "following the money." Definitively linking people with numbered accounts or specific money changers is a powerful pre-emptive tool.
British authorities foiled a plot in the summer of 2006 to blow up airplanes over the Atlantic, thanks in large part to critical intelligence about the money trail. Financial intelligence also played an important role in the investigation leading to the capture of Hambali, Jemaah Islamiyah's operations chief — the mastermind of the 2002 Bali bombings.
And though following the money will not stop all attacks, it can frustrate terrorist activity. In 1995, captured World Trade Center bomber Ramzi Ahmed Yousef was flown over the twin towers on his way to a New York jail. When an FBI agent pointed out that the towers were still standing, Yousef replied, "They wouldn't be if I had enough money and explosives."
Ultimately, combating terrorist financing will not, in and of itself, defeat terrorism. But when employed as part of a broader strategy, it represents a powerful weapon in tackling the terrorist threat facing the nation today.
Levitt directs of the Stein Program on Counter-terrorism and Intelligence at the Washington Institute for Near East Policy. Jacobson is a senior fellow in the program. They authored of the recent study 'The Money Trail: Finding, Following and Freezing Terrorist Finances.'
Source: Statesman
on Monday, January 29, 2007
Legislative and legal measures to combat the phenomenon
Yemen Times Staff
On 6-8 September 2003 a special workshop was held in Sana’a on discussing and combating the phenomenon of money laundering. Studies presented at the workshop had confirmed weakness of the phenomenon in the Yemeni banks due to absence of huge means that are needed in order to explain the Yemeni law promulgated in this respect.
The workshop was organized by the Institute for Banking Studies and the Yemen Central Bank. The workshop targeted enhancement of Yemen’s legislative and legal steps for curbing the leakage of illegitimate capital or trading with it. The workshop working papers had confirmed that weakness of national bank capital that is not exceeding $14 million pushes away the ghost of circulation and laundering illegitimate money.
Participants in the workshop that was concluded last Monday had recommended joining local efforts for confronting crimes of money laundering as the process needed mustering a collective work and not confined to the responsibility of on side than another.
The workshop also recommended the confrontation of organized crimes and tightening the grip on perpetrators of money laundering and depriving them of benefiting from loopholes that the banking sector was suffering from before issuance of the law on combating money laundering.
According to a special study on these crimes Yemen is targeted by gangs of money laundering in order to render it a linking point between production centers of dangerous drugs, such as Pakistan and Afghanistan and the consumer countries in Europe and America, due to Yemen’s geographical distinguished position. The study has estimated the total verified income from world illegal drugs operations at $688 billion per year, $5 billion in Britain, 33 billions in Europe, 150 billions in America and 500 billions in the rest of the world countries. It has also clarified that information piracy operations’ value exceeds $200 billion, in imitating trade marks over 100 billion and in forfeiting and fraud more than 10 billions while pornography films yield about $2.5 billion and sex activities 20 billion per year.
According to banking working papers presented at the workshop the available information on money laundering in Yemen has not reached a level of danger but in recent years it has been found out the presence of fears from illegal trade with money laundering.
http://yementimes.com/article.shtml?i=667&p=business&a=1
Yemen Times Staff
On 6-8 September 2003 a special workshop was held in Sana’a on discussing and combating the phenomenon of money laundering. Studies presented at the workshop had confirmed weakness of the phenomenon in the Yemeni banks due to absence of huge means that are needed in order to explain the Yemeni law promulgated in this respect.
The workshop was organized by the Institute for Banking Studies and the Yemen Central Bank. The workshop targeted enhancement of Yemen’s legislative and legal steps for curbing the leakage of illegitimate capital or trading with it. The workshop working papers had confirmed that weakness of national bank capital that is not exceeding $14 million pushes away the ghost of circulation and laundering illegitimate money.
Participants in the workshop that was concluded last Monday had recommended joining local efforts for confronting crimes of money laundering as the process needed mustering a collective work and not confined to the responsibility of on side than another.
The workshop also recommended the confrontation of organized crimes and tightening the grip on perpetrators of money laundering and depriving them of benefiting from loopholes that the banking sector was suffering from before issuance of the law on combating money laundering.
According to a special study on these crimes Yemen is targeted by gangs of money laundering in order to render it a linking point between production centers of dangerous drugs, such as Pakistan and Afghanistan and the consumer countries in Europe and America, due to Yemen’s geographical distinguished position. The study has estimated the total verified income from world illegal drugs operations at $688 billion per year, $5 billion in Britain, 33 billions in Europe, 150 billions in America and 500 billions in the rest of the world countries. It has also clarified that information piracy operations’ value exceeds $200 billion, in imitating trade marks over 100 billion and in forfeiting and fraud more than 10 billions while pornography films yield about $2.5 billion and sex activities 20 billion per year.
According to banking working papers presented at the workshop the available information on money laundering in Yemen has not reached a level of danger but in recent years it has been found out the presence of fears from illegal trade with money laundering.
http://yementimes.com/article.shtml?i=667&p=business&a=1
on Thursday, January 18, 2007
Dr Moyara Ruehsen
Academic Director of the Terrorism Research and Education Program, Monterey Institute of International Studies California. Dr Ruehsen is an expert on illicit marketing and smuggling with particular focus on the Middle East. The following is based on her lecture in New Delhi organized by IPCS US government efforts in combating terrorism suffer from lack of ad-equate institutional as well as human capital.
The institutional set up includes only one unit within the Treasury Dept called the Financial Crime Enforcement Network - the US financial intelligence unit; one unit within the Federal Bureau of Investigation (FBI), one in the Central Intelligence Agency (CIA), one in the National Security Council (NSC) and one in the State Department.
Coupled with this, some of the top officials are found to be changing their positions on an average every two years which results in lack of continuity while many are transferring to other jobs creating a deficit of skilled experienced officials.
In addition, law enforcement agencies in the US are ill-equipped to deal with cross-cultural links in organized crime, for instance, the FBI in their fight against Chinese organized crime had just one person in their entire force who could speak Chinese.
The best work in this area is being done by the private sector in the financial service industry. This is primarily because the private sector is concerned about liability, for they do not want to face the enormous fine being imposed on them for not doing their due diligence. Since 9/11, the private sector is more vigilant about learning about their customers and monitoring their activities.
Methods of terrorism financing
There are persistent areas of concern which are not being addressed such as monitoring of charity work, bulk cash smuggling - which according to reports largely funded the Iraq insurgency - and false trade invoicing.
False trade invoicing, which has been used by hawala operators to balance their account sheets for a long time, is now being used for organized crime. It is the easiest mechanism of movement of cash, albeit the most neglected one.
Reports on 9/11 reveal that over invoicing between honey importing companies in the Middle East, particularly Kuwait and Yemen, and the US constituted one of the main source of funding of the 9/11 attacks.
Accordingly, the recorded value of honey exported from the US was found to be much higher than the actual value. The names of these companies are on the terrorism fact list on the internet because of their suspicious transactions. The US Department of Commerce however started to take note of these suspicious transactions only recently.
Another source of money laundering is the deduction of money in the form of zaqat by Islamic banks particularly in the Middle East. For instance, it was found that banks in Abu Dhabi automatically deduct a two and a half percentage of money of the account holder without their knowing what the zaqat will be used for.
Yet, another source is private money being donated by philanthropic millionaires around the world who empathize with the Wahabi ideology and who are donating money directly to the madrassas in Pakistan or to groups like Lashkar-e-Taiba operating in Kashmir from Pakistan.
Legalizing hawala operators could be a possible method of countering terrorism financing. India presents a unique case for it is the only country in which hawala transactions are illegal, where as in the rest of the world they are legal so long as the hawala operator is licensed and/or registered. The rationale behind allowing them to operate with a license is so that the law enforcement authority can keep track of these transactions and monitor them. This approach was endorsed by many countries in the Abu Dhabi Declaration.
Another measure for combating terrorism financing is through the setting up of Trade Transparency Units (TTU) in which US is leading the way. A TTU not only monitors commercial transactions, but also uses computer software to pull out all suspicious transactions including under and over invoicing. As of now, the US is focused on South America.
Indo-US cooperation
The reason behind the limited nature of Indo-US cooperation in this field is the close alliance between Pakistan and the US. The US sponsored the development of Pakistan's financial intelligence unit. It also sponsored Pakistan's membership to the Egmont group - a coalition of 101 countries that have a well-established financial intelligence unit in order to share information on various methods of terrorism financing such as money laundering et al.
India's efforts
India has made efforts to strengthen its anti-money laundering laws but two probable measures might help to improve it further: one, joining the Egmont organization that would serve to strengthen India's investigative efforts by reducing chances of investigation being hampered because of lack of shared information between nations; two, setting up of a TTU in India that will help to monitor commercial transactions.
The following are excerpts from the debate generated by Dr Moyara Ruehsen's remarks:
• The proposition of legalizing hawala operators is not feasible in the case of India considering the difficulty in distinguishing between trade transactions for profiteering purposes and those for terrorist activity, the sheer volume of transactions being carried out in India, and the strict banking rules already in place.
• Since terrorism activity is not very capital-intensive, defeating terrorism through financial channels may prove to be futile. A glaring example of this is that of Osama bin laden personally funding terrorist activities in the initial years. Therefore, tracking the use of technology may be a better technique.
• Unless the US takes deliberate measures as a matter of strategy to do something about its relation with Pakistan, there is limited scope for Indo-US cooperation. Another concern is the proliferation of weapons from the US to nations like Pakistan purportedly for fighting the militants, but which in turn finds their way to terrorist organizations. Therefore, American talk and efforts against terrorism are rendered ineffective given the fact that it itself is facilitating the passage of weapons to smaller groups engaged in militant activities.
Dr Moyara Ruehsen's lecture and the debate thereon were recorded by Devyani Srivastava, Research Assistant, IPCS.
http://www.indiapost.com/members/story.php?story_id=6069
Academic Director of the Terrorism Research and Education Program, Monterey Institute of International Studies California. Dr Ruehsen is an expert on illicit marketing and smuggling with particular focus on the Middle East. The following is based on her lecture in New Delhi organized by IPCS US government efforts in combating terrorism suffer from lack of ad-equate institutional as well as human capital.
The institutional set up includes only one unit within the Treasury Dept called the Financial Crime Enforcement Network - the US financial intelligence unit; one unit within the Federal Bureau of Investigation (FBI), one in the Central Intelligence Agency (CIA), one in the National Security Council (NSC) and one in the State Department.
Coupled with this, some of the top officials are found to be changing their positions on an average every two years which results in lack of continuity while many are transferring to other jobs creating a deficit of skilled experienced officials.
In addition, law enforcement agencies in the US are ill-equipped to deal with cross-cultural links in organized crime, for instance, the FBI in their fight against Chinese organized crime had just one person in their entire force who could speak Chinese.
The best work in this area is being done by the private sector in the financial service industry. This is primarily because the private sector is concerned about liability, for they do not want to face the enormous fine being imposed on them for not doing their due diligence. Since 9/11, the private sector is more vigilant about learning about their customers and monitoring their activities.
Methods of terrorism financing
There are persistent areas of concern which are not being addressed such as monitoring of charity work, bulk cash smuggling - which according to reports largely funded the Iraq insurgency - and false trade invoicing.
False trade invoicing, which has been used by hawala operators to balance their account sheets for a long time, is now being used for organized crime. It is the easiest mechanism of movement of cash, albeit the most neglected one.
Reports on 9/11 reveal that over invoicing between honey importing companies in the Middle East, particularly Kuwait and Yemen, and the US constituted one of the main source of funding of the 9/11 attacks.
Accordingly, the recorded value of honey exported from the US was found to be much higher than the actual value. The names of these companies are on the terrorism fact list on the internet because of their suspicious transactions. The US Department of Commerce however started to take note of these suspicious transactions only recently.
Another source of money laundering is the deduction of money in the form of zaqat by Islamic banks particularly in the Middle East. For instance, it was found that banks in Abu Dhabi automatically deduct a two and a half percentage of money of the account holder without their knowing what the zaqat will be used for.
Yet, another source is private money being donated by philanthropic millionaires around the world who empathize with the Wahabi ideology and who are donating money directly to the madrassas in Pakistan or to groups like Lashkar-e-Taiba operating in Kashmir from Pakistan.
Legalizing hawala operators could be a possible method of countering terrorism financing. India presents a unique case for it is the only country in which hawala transactions are illegal, where as in the rest of the world they are legal so long as the hawala operator is licensed and/or registered. The rationale behind allowing them to operate with a license is so that the law enforcement authority can keep track of these transactions and monitor them. This approach was endorsed by many countries in the Abu Dhabi Declaration.
Another measure for combating terrorism financing is through the setting up of Trade Transparency Units (TTU) in which US is leading the way. A TTU not only monitors commercial transactions, but also uses computer software to pull out all suspicious transactions including under and over invoicing. As of now, the US is focused on South America.
Indo-US cooperation
The reason behind the limited nature of Indo-US cooperation in this field is the close alliance between Pakistan and the US. The US sponsored the development of Pakistan's financial intelligence unit. It also sponsored Pakistan's membership to the Egmont group - a coalition of 101 countries that have a well-established financial intelligence unit in order to share information on various methods of terrorism financing such as money laundering et al.
India's efforts
India has made efforts to strengthen its anti-money laundering laws but two probable measures might help to improve it further: one, joining the Egmont organization that would serve to strengthen India's investigative efforts by reducing chances of investigation being hampered because of lack of shared information between nations; two, setting up of a TTU in India that will help to monitor commercial transactions.
The following are excerpts from the debate generated by Dr Moyara Ruehsen's remarks:
• The proposition of legalizing hawala operators is not feasible in the case of India considering the difficulty in distinguishing between trade transactions for profiteering purposes and those for terrorist activity, the sheer volume of transactions being carried out in India, and the strict banking rules already in place.
• Since terrorism activity is not very capital-intensive, defeating terrorism through financial channels may prove to be futile. A glaring example of this is that of Osama bin laden personally funding terrorist activities in the initial years. Therefore, tracking the use of technology may be a better technique.
• Unless the US takes deliberate measures as a matter of strategy to do something about its relation with Pakistan, there is limited scope for Indo-US cooperation. Another concern is the proliferation of weapons from the US to nations like Pakistan purportedly for fighting the militants, but which in turn finds their way to terrorist organizations. Therefore, American talk and efforts against terrorism are rendered ineffective given the fact that it itself is facilitating the passage of weapons to smaller groups engaged in militant activities.
Dr Moyara Ruehsen's lecture and the debate thereon were recorded by Devyani Srivastava, Research Assistant, IPCS.
http://www.indiapost.com/members/story.php?story_id=6069
on Sunday, December 10, 2006
The Associated Press
Sunday, December 10, 2006
AMMAN, Jordan
Jordanian Prime Minister Marouf al-Bakhit on Sunday urged stepped up international efforts to combat corruption, saying it had reached unprecedented levels and played a significant role in global terrorism.
"Corruption of its various sorts has a strong link to organized crime, including drugs, human trafficking, terrorism, arms smuggling, illegal immigration and the misuse of authority, al-Bakhit said.
"Therefore, international cooperation, experience-sharing, information exchange and consolidating technical assistance between countries, international organizations and civil society institutions is highly significant and a human duty," he asserted.
Al-Bakhit said global corruption reached "unprecedented levels." Quoting World Bank figures, he said bribery is estimated at US$1 trillion (€750 million) each year.
"The money spent on bribery is 10 times the international assistance available for development, which makes us realize the seriousness and gravity of the crime of corruption.
Al-Bakhit made the remarks at the opening of a four-day U.N.-sponsored anti-corruption conference on the Jordanian shores of the Dead Sea.
Some 500 participants from 125 countries are reviewing the U.N. Convention Against Corruption, the first legally binding international anti-corruption tool, which came into force on Dec. 14, 2005.
So far, 140 countries have signed the convention and 80 have ratified it to become full-fledged parties.
It addresses corruption in both the public and private sectors and requires countries to criminalize money laundering, bribery, embezzlement of public funds, and obstruction of justice.
Participants include government ministers, civil society representatives and the private sector, who are examining ways to enforce compliance with the convention, asset recovery and technical assistance to build national capacity to combat corruption.
They are also seeking to strengthen legal cooperation between countries in gathering evidence for use in trials and extradition proceedings are also under discussion.
Conference host Jordan, which ratified the convention on Feb. 24, 2005, is among seven Arab countries that are party to the convention, including Egypt, Kuwait, Yemen, Djibouti, Libya and Algeria.
Last Monday, Jordan's ruler, King Abdullah II, issued a royal decree approving the country's anti-corruption commission law, endorsed by parliament in September. It establishes an official body in Jordan entrusted with combating public sector corruption in line with the U.N. convention.
The commission is expected to have a free mandate to pursue current and former officials who are suspected of being involved in corruption.
http://www.iht.com/articles/ap/2006/12/10/africa/ME_GEN_Jordan_U.N._Anti_Corruption.php
Sunday, December 10, 2006
AMMAN, Jordan
Jordanian Prime Minister Marouf al-Bakhit on Sunday urged stepped up international efforts to combat corruption, saying it had reached unprecedented levels and played a significant role in global terrorism.
"Corruption of its various sorts has a strong link to organized crime, including drugs, human trafficking, terrorism, arms smuggling, illegal immigration and the misuse of authority, al-Bakhit said.
"Therefore, international cooperation, experience-sharing, information exchange and consolidating technical assistance between countries, international organizations and civil society institutions is highly significant and a human duty," he asserted.
Al-Bakhit said global corruption reached "unprecedented levels." Quoting World Bank figures, he said bribery is estimated at US$1 trillion (€750 million) each year.
"The money spent on bribery is 10 times the international assistance available for development, which makes us realize the seriousness and gravity of the crime of corruption.
Al-Bakhit made the remarks at the opening of a four-day U.N.-sponsored anti-corruption conference on the Jordanian shores of the Dead Sea.
Some 500 participants from 125 countries are reviewing the U.N. Convention Against Corruption, the first legally binding international anti-corruption tool, which came into force on Dec. 14, 2005.
So far, 140 countries have signed the convention and 80 have ratified it to become full-fledged parties.
It addresses corruption in both the public and private sectors and requires countries to criminalize money laundering, bribery, embezzlement of public funds, and obstruction of justice.
Participants include government ministers, civil society representatives and the private sector, who are examining ways to enforce compliance with the convention, asset recovery and technical assistance to build national capacity to combat corruption.
They are also seeking to strengthen legal cooperation between countries in gathering evidence for use in trials and extradition proceedings are also under discussion.
Conference host Jordan, which ratified the convention on Feb. 24, 2005, is among seven Arab countries that are party to the convention, including Egypt, Kuwait, Yemen, Djibouti, Libya and Algeria.
Last Monday, Jordan's ruler, King Abdullah II, issued a royal decree approving the country's anti-corruption commission law, endorsed by parliament in September. It establishes an official body in Jordan entrusted with combating public sector corruption in line with the U.N. convention.
The commission is expected to have a free mandate to pursue current and former officials who are suspected of being involved in corruption.
http://www.iht.com/articles/ap/2006/12/10/africa/ME_GEN_Jordan_U.N._Anti_Corruption.php
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