‘The financial war on terror – a ten year review of counter-terrorist financing strategies'. Dr Nicholas Ryder University of the West of England Wednesday 12 th October 2011

Abstract The costs of terrorist attacks Sources of terrorist finances The impact of 9.11 The International Community What is the financial war on terror? United States of America United Kingdom Conclusion

World Trade Centre Bombing, 1993, $139 Ramzi Yousef ‘we ran out of money to bring both towers down’

The London terrorists attacks, July 2005, £

The Madrid bombings, 2004, $10,000

The Bali night club, $74,000

9.11, $500,000

Sources of Terrorist Financing State Sponsors of terrorism: – Sudan, Iran, Cuba and Syria (Department of State, – Saudi Arabia? ( ated) ated Private terrorist moneys may be classified into two categories on the basis of their origin: – legitimate, and unlawful funds – Khalid Sheik Mohammed

Sources of Terrorist Financing Charities – Holy Land Foundation Holy Land Foundation – Home Office (2006) – alleged link to 7 th July 2005 Home Office (2006) – alleged link to 7 th July 2005 – Taliban funds increasing – &feature=related &feature=related

The Impact of 9.11 International community not focused on terrorist financing Concentrated on – Money laundering – Illegal drugs trade Galvanising factor

International Community United Nations – Resolution A/RES/51/210 (1996) – International Convention for the Suppression of Terrorist Financing (1999) – UN Security Council Resolution 1267 (1999) This imposed a range of sanctions against the Taliban regime in Afghanistan following the US embassy bombings in Nairobi and Dar es Salaam in 1998 – UN Security Council Resolution 1373 (2001) Criminalised offence of terrorist financing Countries required to freeze financial and economic assets Nationals preventing from making funds available Established the Counter-terrorism Committee

International Community Financial Action Task Force – 40 Recommendations – 9 Special Recommendations Recommendation 1 – criminalise terrorist financing Recommendation 2 – ratify and implement UNSC 1373 Recommendation 3 – freeze funds pursuant to 1267 Recommendations 4 and 5 – preventative CFT measures including suspicious activity reports Recommendations 5-9 – concentrate on vulnerable areas including alternative remittance systems, wire transfers, the non profit sector and cash couriers. – Soft law measures – Non co-operative countries and territories list

International Community European Union – Council framework decision on combating terrorism [2002] OJ L164/3 – Council Common Position [2001] OJ L344/93 – Council Regulation (EC) 2580/2001 – Council Regulation (EC) 881/2002 – Council Regulation (EC) 561/2003

What is the financial war on terror? Instigated by President George Bush on September 20 th 2001? – No, instigated by President Bill Clinton: – Presidential Executive Order 12,947 – Presidential Executive Order 13,099 – Presidential Executive Order 13,129

What is the financial war on terror? President George Bush – Presidential Executive Order 13,224 – USA Patriot Act 2001 – Department of Treasury – Office of Foreign Assets Control

United States Counter Terrorist Financing Policy The policy can be divided into three parts: 1.Criminalisation 2.Freezing of assets (association, suspected or known terrorists) 3.Suspicious activity reports FinCEN guidelines permit racial profiling

United Kingdom Counter Terrorist Financing Policy The policy can be divided into three parts: 1.Criminalisation 2.Freezing of assets (association, suspected or known terrorists) 3.Suspicious activity reports Recent developments – A v HM Treasury [2010] UKSC 2 – Terrorist Asset-Freezing etc. Act 2010

Conclusion Has the financial war on terror been a success? Media friendly headlines Freezing of terrorist assets Unlimited array of sources Very small number of convictions Financial intelligence approach flawed

‘The financial war on terror – a ten year review of counter- terrorist financing strategies'.