Islamic, offshore banks er scruti
 

 

Islamic, offshore banks under scrutiny for financing terrorists

UAE orders freeze on 'terror' accounts

keralamonitor.com

Dubai; Islamic banks, which handle billions of dollars through a wide network of branches in Bahrain, Saudi Arabia, Malaysia, Pakistan, various Western countries and other parts of the Islamic world are suspected to be the one of the main channels of financial support to militant Islamic groups, said banking sources. Saudi Arabia has been one of the main sources of financial support to the Taleban and Osama bin Laden, said reports. A number of Islamic banks in the Kingdom of Saudi Arabia are believed to be the main channel of fund flow. A number of bank officials are alleged to have links to the Islamic terrorist groups. Bahrain based offshore banks and Islamic banks have also been under the close scrutiny of the FBI and other investigating agencies. Even some of the leading US multinational banks like the Citibank too have strong Islamic banking subsidiaries, some of which are under close scrutiny of the FBI and other investigative agencies.(List of 26 Militant Islamic groups banned by the USA)

The Central Bank of the UAE has directed all financial institutions in the country to immediately search for and freeze the accounts of 26 terrorist organisations and leaders, including that of Osama bin Laden., reported the Gulf News. Banks, especially Islamic banks in Saudi Arabia and the UAE, which have officially recognized the Taleban, have been closely monitored by the law enforcement authorities following the terrorist attacks in New York. It may be recalled that the Western countries have frozen Osama bin Laden"s accounts in the past following the other terrorist attacks. Money from the US and Islamic world has been sent to these groups during the Cold War period when the common enemy was the Soviet Union and Communist movements.

"Based on UAE's decision in conjunction with the international efforts to fight
terrorism, you (all banks, moneychangers, investment companies and other financial institutions including the insurance sector and the financial markets) are required to search for immediately and freeze any accounts, deposits and investments" in the named list, said the GN report. Financial institutions are required not to transfer any funds to the persons/ entities mentioned into any territory or country, and in case funds are received from the named persons/entities or for their favour, the same should be frozen immediately. "Non-compliance will lead to freezing of your assets in the U.S. and its financial institutions and other countries, and would subject you to severe penalties in the UAE," the directive, signed by Central Bank Governor Sultan bin Nasser Al Suwaidi, warned UAE-based financial institutions.Recent reports also indicated that some of the Gulf countries and Lebanon are involved in money laundering. o

The Federal Bureau of Investigation has released 19 photographs of individuals believed to be the hijackers of the four airliners that crashed on September 11, 2001, into the World Trade Center in New York, the Pentagon, and in Stony Creek Township, Pennsylvania. Many Arab citizens from Saudi Arabia, UAE and other Middle Eastern countries are suspected..

DUBAI BUSINESS CHANNEL LAUNCHES DOCUMENTARY SERIES
'ECONOMIC CROSS ROADS' TO PUT WTO IN FOCUS

keralamonitor.com

Dubai: The Business Channel, the first Middle East business news service from Dubai, is to launch an Arabic economic documentary series the first of which is timed to coincide with the build-up to November's World Trade Organisation Conference in Qatar.

Entitled 'Economic Cross Roads,' the programmes are being produced and presented by Jordanian journalist Saleh Madhi and will feature interviews with Saeed Al Nisibi, WTO Affairs Director and Dr. Hassan Abu Taher, WTO Affairs Consultant, both from the UAE Ministry of Economy and Trade.

The first in the 30-minute documentary series will be aired on Thursday, October 4th at 10.30 p.m. and will be repeated on Friday, October 5th at 5.30 a.m. and on Saturday, October 6th at 00.30 a.m. It will centre around the challenges facing Arab countries as they move to free trade and services and establish intellectual property rights legislation and enforcement.

"The staging of the WTO conference in Qatar is a major event for the region and will focus the eyes of the trading world on the Gulf," said Rashid Murooshid, Managing Director, Business Channel."This regional milestone deserves in-depth and incisive coverage, not only from an international perspective but also from a Pan Arab point of iew."Producer/presenter Saleh Madhi, a graduate of the International Centre of Journalist in France and a member of the European Journalists' Society, is a broadcaster of 20 years standing and has a long career with Jordan TV during which he has anchored and edited numerous economic and political programmes.In the Middle East, the Dubai-based Business Channel is available via Arabsat/Nilesat and E-Vision.

 

IMF Approves US$135 Million Disbursement for Pakistan

The Executive Board of the International Monetary Fund (IMF) today completed the third and last review under Pakistan's Stand-By Arrangement, which was approved in November 2000 to support the country's economic reforms through September 2001.

The completion of the final review will enable Pakistan to draw SDR 105 million (about US$135 million). This will bring total disbursements under the IMF-supported program to SDR 465 million (about US$600 million). To complete the review, the Executive Board approved a waiver for the non-observance of a performance criterion under the arrangement required due to a six-week delay in promulgation of a new income tax law.

After the Executive Board's discussion of Pakistan's economic program, Eduardo Aninat, Deputy Managing Director and Acting Chairman, issued the following statement:

"Pakistan's achievements under the program supported by the Stand-By Arrangement have been commendable. Despite adverse weather conditions, real per capita GDP rose, inflation has been lower than expected, and external balances and official reserves have improved in line with program targets. The implementation of structural reforms has been broadly on track. While tax revenue collection was weaker than expected, the budget deficit was kept within the targeted level.

"To consolidate these achievements and build a solid foundation for sustainable high growth over the medium term, particularly in light of the heightened uncertainty following recent events, the authorities will need to pursue further macroeconomic adjustment and structural reforms. A first challenge will be to hold the course on the 2001/02 budget, despite continued weaknesses in tax revenue collection in recent months and a weaker-than-expected global environment. Recent measures to raise fuel taxation and reduce non-priority spending should help contain the fiscal deficit, while allowing for higher social and poverty-related spending. At the same time, the broadening of the tax base and a fundamental reform of tax administration are urgently needed.

"Another key challenge will be to further build foreign exchange reserves, which will require good coordination of monetary and exchange rate policies, while further liberalizing the foreign exchange interbank market to reduce the importance of the kerb market.

"Other reform priorities are to improve governance and transparency in the management of public resources, particularly in the context of the ongoing devolution of fiscal responsibilities to the newly elected local governments; the ongoing restructuring and privatization of public enterprises; and the strengthening of the financial system," Mr. Aninat said.

KENYA: US gives police list of 200 suspected terrorists

NAIROBI, 26 September (IRIN) - The FBI on Monday gave Kenyan police a list of 200 suspects wanted in connection with the terrorist attacks on New York and Washington on 11 September, the 'Daily Nation' reported on Tuesday. The US is stepping up its hunt across Africa for suspects wanted in connection with their investigation into the attacks. Uganda and Tanzania, along with South Africa, have also been given long lists of names believed to be linked to the prime suspect behind the attacks, the Saudi-born militant, Osama Bin Laden.

The list of suspects was reportedly being examined by the Nairobi office of the international criminal police agency Interpol. US investigators are also reported to be scrutinising banking transactions in Kenya's second city of Mombasa. Regional border controls have also been tightened. More than 200 people died in bomb attacks on US embassies in Kenya and Tanzania in 1998, which were also linked to Bin Laden.

South Africa previously helped US intelligence track down a Tanzanian, Khalfan Mohamed, who was traced through an asylum application following the embassy bombings. He received a life sentence earlier this year for the bombing of the Dar es Salam embassy. Meanwhile, Muslim leaders in Mombasa complained of harassment by FBI agents. "We very much oppose those FBI leaders in Kenya, who come here to humiliate Muslims as they did in 1998, we will not accept," Kenyan Television Network quoted Iman Munir Mazrui as saying.

The Kenyan government has reiterated that it does not harbour organisations or individuals associated with the terror attacks. Speaking in Nairobi on Monday, Peter Odoyo, an assistant minister for foreign affairs and international cooperation, dismissed reports that Bin Laden owned an ostrich farm in Kenya, among other business interests. "Kenya encourages foreign investment, and we should not assume that any Arab investment in Kenya is Osama's. Not every Arab is a terrorist," he said. Odoyo added that he was planning to bring Kenyan students studying in Pakistan back home soon for security reasons.

US ATTORNEY OUTLINES MOBILIZATION AGAINST TERRORISM ACT

 

WASHINGTON, D.C. Attorney General John Ashcroft today presented the Mobilization Against Terrorism Act to Congress. Appearing before the House Judiciary Committee, Attorney General Ashcroft outlined the comprehensive legislative initiative which will redefine the antiterrorism effort while protecting civil liberties. The purpose of the legislation is to provide the President and the Department of Justice with the tools and resources necessary to disrupt, weaken, thwart, and eliminate the infrastructure of terrorist organizations, to prevent or thwart terrorist attacks, and to punish perpetrators of terrorist acts.

"The danger that darkened the United States of America and the civilized world on September 11 did not pass with the atrocities committed that day," said Ashcroft. "It requires that we provide law enforcement with the tools necessary to identify, dismantle, disrupt and punish terrorist organizations before they strike again. Terrorism is a clear and present danger to American's today."

The proposed legislation seeks to combat terrorist activity on several fronts. Title I enhances the Department's capacity to gather intelligence necessary to combat terrorist organizations who increasingly employ sophisticated modes of global communications. Existing wiretap authority and procedures have not kept pace with the development of modern technology or the mode of operations of international terrorist organizations. Since current wiretap authority is often restricted to specific property as opposed to allowing law enforcement to follow suspects, current authority is inadequate for investigative personnel to monitor terrorist agents and associates. These proposals update the law to the technology. Terrorist offenses necessitate and justify comprehensive intelligence gathering.

Title II enhances the authority of the Immigration and Naturalization Service to detain and remove suspected terrorists by expanding the definition of terrorists to include those who lend support to terrorist organizations. The ability of terrorists to enter the United States and operate within the country is the obvious prerequisite to their capacity to inflict damage on citizens and facilities. These proposals protect the integrity of the United States borders without sacrificing the ability to welcome law-abiding visitors and legal immigrants.
Title III proposes changes to enhance prosecutors' ability to disable terrorists organizations through the legal process. The proposal amends current law to encourage investigation and prosecution prior to successful completion of a devastating terrorist attack. Terrorism should be considered no less than murder and the elimination of the statute of limitations on terrorist acts is reflective of these sentiments. In addition, this legislation provides for alternative maximum sentences, up to life, for the commission of terrorist acts, giving judges the ability to punish terrorists commensurate to their crimes. A number of other proposals are designed to punish or deter those who would assist terrorists and their organizations through concealment of their activities or their members. The lending of support that works to further terrorist organizations and to perpetuate terrorist attacks is expressly criminalized. In these specific changes to the law of crimes and criminal procedure, the constitutional rights of the accused are respected.


Title IV aims at the financial infrastructure of terrorist organizations whose sophisticated operations require substantial financial resources. Often such resources are provided by those not directly responsible for terrorist acts. These proposals will cripple the capacity of terrorist organizations to finance their illegal activities through criminal and civil forfeiture of resources. In addition, criminal liability is specifically imposed on those who knowingly engage in financial transactions involving the proceeds of these acts.


Title V authorizes emergency operations in response to the September 11 attacks and assists the Attorney General in providing support and relief to the victims. These proposals provide the Attorney General greater discretion and authority to disburse funds with regard to rewards to be offered in connection with crimes of terrorism.

ANNEX

 

ute to give financial support to Islamic groups, said banking sources. Saudi Arabia has been the main source of financial support to the Taleban and Osama bin Laden, said reports. A number of Islamic banks in the kingdom of Saudi Arabia are believed to be the main channel of fund diversion. A number of bank officials are alleged to have links to the Islamic terrorist groups. Bahrain based offshore banks and Islamic banks have also been under the close scrutiny of the FBI and other investigating agencies. Even some of the leading US multinational banks like the Citibank too have strong Islamic banking subsidiaries, some of which are under close scrutiny of the FBI.

The Central Bank of the UAE has directed all financial institutions in the country to immediately search for and freeze the accounts of 26 terrorist organisations and leaders, including that of Osama bin Laden., reported the Gulf News. Banks, especially Islamic banks in two Gulf countries, y Saudi Arabia and the UAE, which have recognized the Taleban, have been closely monitored by the law enforcement authorities following the terrorist attacks in New York. It may be recalled that the Western countries have frozen Osama bin ladens accounts in the past following the other terrorist attacks.

"Based on UAE's decision in conjunction with the international efforts to fight
terrorism, you (all banks, moneychangers, investment companies and other financial institutions including the insurance sector and the financial markets) are required to search for immediately and freeze any accounts, deposits and investments" in the named list, said the GN report. Financial institutions are required not to transfer any funds to the persons/entities mentioned into any territory or country, and in case funds are received from the named persons/entities or for their favour, the same should be frozen immediately. "Non-compliance will lead to freezing of your assets in the U.S. and its financial institutions and other countries, and would subject you to severe penalties in the UAE," the directive, signed by Central Bank Governor Sultan bin Nasser Al Suwaidi, warned UAE-based financial institutions.Recent reports also indicated that some of the Gulf countries and Lebanon are involved in money laundering.