Miami Immigration Case Sets Solid Precedent For Potential Use In Terrorism & Security Arena

By Bill West

Lionel Jean-Baptiste is now a Haitian citizen who is a lawful permanent resident alien of the United States. He is also a convicted drug trafficker who is detained at the Krome Detention Center near Miami, Florida pending removal (deportation) proceedings based upon his drug crimes. Until recently, Jean-Baptiste was a naturalized U.S. citizen.

The U.S. Government, originally the Immigration and Naturalization Service (INS) and later Immigration and Customs Enforcement (ICE) as well as the Department of Justice (DOJ) pursued the revocation of Jean-Baptiste’s naturalized citizenship in Federal civil court proceedings in what has become a unique and now precedent-setting case, reaching all the way to the U.S. Supreme Court. Last October, the Supreme Court denied Jean-Baptiste’s petition for a writ of certiorari and allowed the ruling of the Federal 11th Circuit Court of Appeals to stand.

That 11th Circuit ruling affirmed the revocation of Jean-Baptiste’s U.S. citizenship based upon the Government’s contention that he lacked “Good Moral Character” before and during the time he applied for U.S. citizenship, due to his drug trafficking activities, and that he misrepresented that good moral character in the naturalization process. Once the Supreme Court issued its ruling and the citizenship revocation became final, ICE began removal proceedings against Jean-Baptiste because he was then an alien convicted of a drug trafficking violation and also an aggravated felony. As such, Jean-Baptiste will likely remain detained while his removal proceedings are adjudicated, a process that could literally take several years if he chooses to appeal adverse decisions, with appellate rights ranging from the Board of Immigration Appeals, the 11th Circuit Court of Appeals (again) and the U.S. Supreme Court (again) on the deportation issues.

AS SAHAB ANNOUNCES A BIN LADEN VIDEO ON SOMALIA

By Walid Phares

As Sahab Productions announced that a Video message by UBL"is coming" without a specific date. The announcement in the web site Marquee cites a message addressing the Jihadists in Iraq and Somalia. Chat rooms and other al Jazeera panels have been trying to determine the global position of al Qaida regarding post Zarqawi Iraq and regarding Somalia after the take over of Mogadiscu by the "IslamicTribunals." (al Makakem). I assume Bin laden has decided to address the issue of Somalia strategically. With regards Iraq, between his last message and Zawahiri's its pretty much clear.

On June 7, I noted Somalia's "Mahakem al Islamiya" is connected to al Qaida.

Translation: "As-Sahab: Coming Soon - Sheikh Usama Bin Laden to the Muslim Nation as a whole and in particular to the Mujahideen in Iraq & Somalia."

Excerpts from the Osama bin Laden Tape

By Bill Roggio

The latest Osama bin Laden tape has focused almost exclusively on the death and lionization of Abu Musab al-Zarqawi, with very little deviation on this theme. As Evan Kohlmann indicated last evening, the "intended audience are those primarily supportive of Al Qaeda." Excerpted below are items of interest in the tape (post will be updated when a full transcript is available):

Osama bin Laden compares Zarqawi to Muhammed and the revered Imams of the Islamic faith, including Imam Ali, who is venerated in Shia Islam. Given Zarqawi's practice of slaughtering the Shia to incite a civil war, this hypocritical reference by bin Laden is curious.

Abu-Mus'ab followed the example of our Prophet Muhammad, God's peace and blessings be upon him, and followed the example of Mus'ab, Umar, Ali, and Ja'far, may God be pleased with all of them. He fought war with a smile, so God elevated his status and reputation and he became an example for people after him.

Osama bin Laden invokes the jihad in Sudan for the second time this year, and also mentions the rise of the Islamic Courts in Somalia:

"We will continue, God willing, to fight you and your allies everywhere, in Iraq and Afghanistan and in Somalia and Sudan until we waste all your money and kill your men and you will return to your country in defeat as we defeated you before in Somalia."

"This is a not-so-subtle nod to the Islamic Courts Union (ICU) in Somalia that successfully control of southern Somalia... which could also be an indication that bin Laden may have been aware of the fact that long-time al-Qaeda ally Sheikh Hassan Dahir Aweys has been appointed the new head of the ICU executive council," says independent terrorism analyst Dan Darling.

New Osama Bin Laden Video Tape Released (updated 6/30)

By Andrew Cochran

Image from Osama bin Laden's latest tape.

Some early quotes from CNN's translation: "I say to Bush, you should deliver the body to his family, and don't be too happy. Our flag hasn't fallen. Thanks to God, it has passed from one lion to another lion in Islam... You have prevented Abu Musab from entering his homeland alive. Don't stand in his way now... Our dear Muslim nation, we were deeply saddened by the passing of our loved ones, Abu Musab and his companions. But we were very happy that their souls have flooded these great battles as they were defending the Islamic law... We were very happy to find in him a symbol and role model for our future generations." And more quotes from the AP: "Our Islamic nation was surprised to find its knight, the lion of jihad (holy war), the man of determination and will, Abu Musab al-Zarqawi, killed in a shameful American raid. Even if we lost one of our greatest knights and and princes, we are happy that we have found a symbol for our great Islamic nations, one that the mujahedeen will remember and praise in poetry and in stories secretly and aloud." Laura Mansfield has a complete copy of the tape in Arabic.

Evan Kohlmann on MSNBC: Tape doesn't indicate that any incidents are on the horizon - OBL is jumping on Zarqawi's coattails and using his legacy - ironic since OBL always had problems and Zarqawi is more useful to OBL dead - the tape is subtitled only in arabic, so the intended audience are those primarily supportive of Al Qaeda in Mideast (tapes intended for the West are subtitled in English and American recruits are used in producing these tapes) - OBL is saying Zarqawi's death is only a bump in the road and a sign of moving towards victory, and Al Qaeda appreciates Zarqawi's role - Zarqawi is the "rock star" and Iraq became the front line since the US arrived there - Americans have nothing to fear from this but it was intentionally put out in time for July 4th, as OBL and Al Qaeda are very media-savvy.

Steven Emerson on MSNBC on 6/30 (excerpts): "This was not a message for the West, unlike previous messages of, maybe, six months ago. This was a message to the Arab masses and he is trying to undermine some Arab regimes, particularly Jordan, so he can get Zarqawi buried in that country. Either he is in frail condition or some type of sick condition that would make it very obvious on camera or it’s an operational security matter for him. So, he is discovering that he can instill home-grown jihadists around the world simply by putting out these messages, without having to worry about logistically organizing attacks himself. I think there are increasing incidents of cells motivated by his ideology, but [that] are not taking orders from him, because they don’t need to."

Bill Roggio: Initial reports focus on Osama’s eulogizing of Zarqawi. Keep in mind the initial press reports often omit important facts in these tapes and focus on one or two of the sensational themes of the tape. Osama's reaction to Zarqawi's death is a sensational issue for the media. It is likely Osama discusses Zarqawi's successor in this tape, as 19 minutes is a long time to focus on Zarqawi. (UPDATED 6/30: See Walid Phares' post above.)

This video is about 19 minutes long and shows a still image of OBL and moving images of Zarqawi. There have been no fresh videos of OBL since October 2004. You can see a list of audio and videotapes from OBL here.

The tape was produced by Al Sabah, al-Qaeda's media wing (for a good look at how al-Qaeda produces and distributes its tapes, see this article from the Associated Press).

Libya's Last Day as a "State Sponsor of Terrorism" - Will They Pay Up?

By Andrew Cochran

The champagne corks are popping in Tripoli - yesterday was the end of an era, the day on which Libya's status as an official "state sponsor of terrorism," according to the United States of America, was supposed to end (pending official confirmation). Michael Kraft, who posted an extensive history of Libya's status on May 15, reminds me that "Libya was one of the first countries put on the list in 1979 and only the second taken off under the formal notification procedures (Iraq was first)." Today, the U.S. House passed the bill which would fund the State Department for fiscal year 2007. The bill includes the Sweeney Amendment, which would bar funding of the normalization process until Libya keeps its financial commitments to victims of Libyan terrorism. But yesterday, the Administration issued its Statement of Administration Policy (SAP) on the bill, and it expresses concern over that section and others "that purport to direct or burden the conduct of foreign relations, and of negotiations with foreign countries or international organizations, as well as condition the President’s decisions regarding the use of armed forces..." So while the Administration doesn't voice outright opposition to the Sweeney Amendment, the SAP could be cited in order to water down the Sweeney Amendment in the Senate.

There was one troubling statement from the State Department yesterday on this, indicating no explicit official support to enforce Libya's commitments to the victims. "We're not going to interpret the agreement. That agreement, as I said, is a legal document to which we are not a party and which does not come under our authority or under our jurisdiction. It is a legal agreement between the families and the Libyan government." And when a reporter asked, "So what you're saying is that the rescission of Libya from the list is totally and absolutely unrelated, in your view, to this particular payment?", the answer from a State Department spokesman was a simple, "Yes." That would not please Sen. Frank Lautenberg (D-NJ), who has championed the victims' cause in the Senate. Here are his comments on the Senate floor yesterday:

Some Missing Parts of the Banking Debate

By Douglas Farah

My friend Dennis Lormel and others are correct in stating that programs to attack terror finance must be differentiated and viewed in their many different elements. Which is why what is striking in the current debate is not what is said but what is not discussed.

What is not being discussed is the non-formal methods of money transfer, with the accompanying use of commodities and other methods to store financial value; and the use of the Islamic banking structures and its corresponding, massive offshore structures. This includes not only the multiple holdings of DMI and others in the Bahamas, Caymen and Panama, but also the offshore holdings of designated terrorist financiers such as Yousef Nada and Idriss Nasreddin. None of these have been touched.

The Islamic banking strucutre, while having every right to exist as a system to meet particular religious constraints, does not play by the same rules. Massive amounts of money move outside the SWIFT-reported systems all over the world, in part through Islamic banks that are specifically designed to help the customer avoid the Western banking system. My full blog is here.

Prediction: Bush & Congress Will Override the Supreme Court's Gitmo Decision (updated)

By Andrew Cochran

The news networks are proclaiming that the Supreme Court handed the President a "strong rebuke" in the Hamdan case by declaring the proposed Gitmo trials are illegal under U.S. law and international Geneva conventions.

Oh, really?

The decision is actually a huge political gift to President Bush, and the detainees will not be released that easily. The President and GOP leaders will propose a bill to override the decision and keep the terrorists in jail until they are securely transferred to host countries for permanent punishment. The Administration and its allies will release plenty of information on the terrorist acts committed by the detainees for which they were detained (see this great ABC News interview with the Gitmo warden). They will also release information about those terrorist acts committed by Gitmo prisoners after they were released. They will challenge the "judicial interference with national security" and challenge dissenting Congressmen and civil libertarians to either stand with the terrorists or the American people. The Pentagon will continue to release a small number of detainees as circumstances allow. The bill will pass easily and quickly. And if the Supremes invalidate that law, we'll see another legislative response, and another, until they get it right. Just watch.

UPDATES: Michelle Malkin quotes a statement by Sens. Graham and Kyl: "We intend to pursue legislation in the Senate granting the Executive Branch the authority to ensure that terrorists can be tried by competent military commissions. Working together, Congress and the administration can draft a fair, suitable, and constitutionally permissible tribunal statute." Senate Majority Leader Bill Frist echoed their comments and promised, "I will pursue the earliest possible action in the United States Senate."

Small Progress with the Lord's Resistance Army

By Douglas Farah

One of the great tragedies of Africa in the past decade has been the mostly-ignored violence inflicted on parts of Uganda, Sudan and the DRC by the Lord's Resistance Army (LRA), led by a person who speaks directly to God and has been responsible for the kidnapping of thousands of children, the mutilation of many more, and other crimes against humanity.

The LRA is a terrorist organization that increasingly has proved to be a destabilizing factor across several countries in a region that is already reeling from criminal, terrorist and state-sponsored violence. Like the RUF in Sierra Leone and the Small Boy Units of Charles Taylor in Liberia, the LRA preys on children and women, primarily. Women are used as beasts of burden and sex slaves, the abducted children are turned into killers.

The LRA leader, Joseph Kony, gave his first interview ever to a journalist earlier this week, where he denied the undeniable and claimed the atrocities blamed on him were part of a propaganda campaign against him. Indicted by the International Criminal Court, along with most of the LRA leadership, Kony said he was fighting for "freedom." My entire blog is here.

Insurgent Counterproposal to Reconciliation; offer to lay down arms

By Bill Roggio

Evan Kohlmann's chart of the major Sunni insurgent/terrorist groups. Click to view.

Eleven insurgent groups, eight of which are being led by the 1920 Revolution Brigades, have issued a counter proposal to Iraqi Prime Minister Nouri al-Maliki's plan for national reconciliation. The insurgent groups have offered to quit the battlefield if the following conditions are met:

• The United States agrees to withdraw foreign forces from Iraq in two years.

• An end to U.S. and Iraqi military operations against insurgent forces.

• Compensation for Iraqis killed by U.S. and government forces and reimbursement for property damage.

• An end to the ban on army officers from Saddam's regime in the Iraqi military.

• An end to the government ban on former members of the Baath Party — which ruled the country under Saddam.

• The release of insurgent detainees.

The Associated Press reports the groups largely "operate north of Baghdad in the heavily Sunni Arab provinces of Salahuddin and Diyala." This region is the heart of the operational area of the Baathist/Saddamist insurgency. The 1920 Revolution Brigades is thought to be a mix of Saddam loyalists and military officers, and nationalist Islamists. The 1920 Revolution Brigades is also said to be the armed wing of Islamic Resistance Movement, or Muslim Brotherhood. The Salahudeen Brigades and Mujahideen Army are two other significant elements of the Sunni insurgency (see Evan Kohlmann's chart of the major Sunni insurgent/terrorist groups).

The demands issued by the eleven groups, specifically the end to the bans on Saddam era Army officers and Baathist participation in the government, indicate a significant portion of the Baathist/Saddamist insurgency is searching for a negotiated settlement to end their involvement in the fighting.

One of the demands of this insurgent block is already being met. The Iraqi government has released 450 detainees on June 27th, and over 2,500 total are scheduled to be released "through a series of 200 – 500 person releases throughout the month." While the loyalties of those released has not been made public, the releases are likely being targeted at the eleven insurgent groups as a sign of good faith. At the same time, the Central Criminal Court of Iraq continues to try members of the insurgency for violating the laws of Iraq. The ten latest members of the insurgency have been convicted of non-violent crimes such as "possession of illegal weapons, passport violations and illegal border crossing," and several will be likely eligible for pardon.

In this backdrop, Al Jazeera will soon release the latest statement from Osama bin Laden (apparently a videotape). The tape is said to contain praise for Abu Musab al-Zarqawi, the former leader of al-Qaeda in Iraq killed in a U.S. air strike earlier this month. It will be interesting to see if bin Laden offers support to Abu Hamza al-Muhajir, the current leader of the al-Qaeda backed Mujahideen Shura Council (the U.S. military still believes Mujhair and Egyptian Abu Ayyub al-Masri are one in the same). Mujhair's performance to date has been less than stellar, with significant defections from the Sunni community to the democratically elected government of Iraq.

It should be clear the current talks are on the beginning of a long and likely contentious negotiation process. The United States will not agree to a withdrawal timetable, and the Shiite dominated government will balk at the wholesale reinclusion of Baathists into the military and government. The talks are a merely starting point.

In the past, the negotiations between insurgent groups and the Iraqi government and Coalition have occurred under the covers (Walid Phares indicated the current round of negotiations have been occuring for months). Today the parties are willing to openly discuss reconciliation. The Sunni insurgent groups are taking a great risk by publicly exposing their proclivity to negotiate rather than fight to the end. Their assessment of the military and political situation on the ground clearly has changed, and is causing them to seek an end to the conflict rather than a fight to the death along side al-Qaeda and the other Islamist rejectionists.

CT Blog Experts Interviewed on SWIFT Disclosures

By Andrew Cochran

On June 23, Victor Comras posted, "Reports of US Monitoring of SWIFT Transactions Are Not New: The Practice Has Been Known By Terrorism Financing Experts For Some Time," in which he quoted from a 2002 UN report which briefly discussed the SWIFT program. Numerous media outlets have since interviewed Victor about his exclusive disclosure, including the Boston Globe and New York Times today, and Wolf Blitzer read the pertinent quote from the UN report today on CNN's "Situation Room."

Dennis Lormel, who also posted on his key role in the SWIFT program on June 23, was also interviewed by CNN for today's story, as well as by NBC and other media outlets.

Maliki clarifies reconciliation; Task Force 145 continues operations

By Bill Roggio

Iraqi Prime Minister Nouri al-Maliki has provided clarity to the controversial provision of amnesty for insurgents who killed U.S. and Coalition soldiers. "Any amnesty for insurgents will exclude fighters who killed Iraqis or soldiers of the multinational forces because these troops came to Iraq according to international agreements and they are contributing in making the political process successful... Those who commit such crimes will stand trial because the aim of killing Iraqis or foreign soldiers is to frustrate democracy and the political process." said al-Maliki, according to the Associated Press.

As I speculated in yesterday's National Review Online symposium, this amnesty is very likely directed at the "foot soldiers and mid-level functionaries (weapons smugglers, support cells, and facilitators)." But for a broader reconciliation plan to work, the Iraqi government will likely have to modify this position over time.

Omar at Iraq the Model reports three additional insurgent groups are interested in discussing reconciliation, and the Iraqi government is also beginning discussions with "more than 30 sheikhs who are prominent tribal leaders in al-Anbar region" who wish to end the violence in the region. Several tribes in Anbar have previously committed to hunt down al-Qaeda terrorists and created the Anbar Revenge Brigade to do so earlier this year.

As the Iraqi government pursues reconciliation, Task Force 145, the hunter-killer Special Operations teams assigned to dismantle al-Qaeda's organization in Iraq, continues its difficult work.

Coalition forces arrested Yousri Fakher Mohammed Ali, "a key al-Qaida suspect" wanted in the destruction of the dome of the Shiite Al Askari Mosque in Samarra (or Golden Mosque). Ali, aka Abu Qudama, is of Tunisian origin, was wounded during a raid in Baquba, where "fifteen other foreign fighters were killed in the confrontation." Abu Musab al-Zarqawi and Sheik Abd-Al-Rahman, his spiritual adviser, were killed during an air strike in Baquba earlier this month.

"[National Security Adviser] Mouwafak al-Rubaie said the ringleader in the operation, an Iraqi he identified as Haitham Sabah Shaker Mohammed al-Badri, was still on the run. al-Rubaie said Abu Qudama and al-Badri were in a gang that included two other Iraqis and four Saudis who carried out the attack," according to the Associated Press.

Task Force 145 struck in Yusifiyah two days ago, and captured fourteen terrorists during multiple raids. Included in the catch were "known leaders of the Tawhid Wa'al Jihad and Jaysh al-Islamit" terrorist groups. Yusifiyah has been another al-Qaeda stronghold, and multiple raids have been carried out in this city. The full version of Zarqawi's last videotape was recovered in Yusifiyah, and Zarqawi was believed to have narrowly evaded capture during a Coalition assault on al-Qaeda safe houses in April.

In related news, al-Qaeda has made an interesting enemy in the Iraqi theater. After the murder and beheadings of four Russian diplomats and the subsequent release of videotape, Olivier Guitta speculated Russia might seek revenge. Today, Russian President Vladimir Putin has "ordered Russia's special services to hunt down and 'destroy' the killers of four Russian diplomats in Iraq." Odds are Russian FSB is seeking access to Task Force 145's files on al-Qaeda in Iraq.

Israel Begins Gaza Military Operations, With Possible End of Hamas Government (updated 6/28)

By Andrew Cochran

Israel has started a military campaign in Gaza against the Hamas-run Palestinian Authority, after Hamas refused to release Cpl. Gilad Shalit. This follows numerous attempts at negotiation through various third parties, and Israeli officials sent public and private signals in the past three days, including in private sessions with including journalists and bloggers, that they meant business and would not wait long. This operation will be extensive and could mean the complete end of the Hamas government.

One theory proposed to me by regional experts is that the capture was an intentional step engineered out of Hamas HQ in Damascus to sabotage any Hamas-Fatah prisoner swap and ratchet up tensions. They point out there is more than one "Hamas." See this NPR story for more discussion of htis view. It will be interesting to see what Abbas and Fatah do in reaction to the Israeli operations.

LAST UPDATE, 2:30 pm ET: "The IDF took control of the abandoned airport in Dahaniyeh and the town of Shuka in southern Gaza Wednesday morning." Israel also bombed a Hamas training camp and knocked out electricity and water supplies for most of the 1.3 million residents of the Gaza Strip. Hamas leader Khaled Mashaal "is a target for assassination for ordering the kidnapping of an Israeli soldier in the Gaza Strip." Israel sent a message to Syria about its sponsorship of Hamas by buzzing President Assad's house.

The Multiple Challenges of Terrorist Financing

By Dennis Lormel

By Dennis M. Lormel

Terrorist financing presents a multi-dimensional challenge. When assessing terrorist financing, the tendency is to do so in an all encompassing generic sense. In actuality, terrorist financing should be broken down to its myriad of component parts. Strategies and methodologies should be focused on specific considerations, not generalities.

On the terrorist side of the ledger, there are two basic funding needs: fundraising and operational sustenance. Each consideration should be assessed separately. Terrorists must have sources of funding, the means of laundering funds and the availability of funding in order to achieve their goals. Terrorist organizations have had many years to perfect their funding methodologies. This has placed anti-terrorist financing efforts in a greater reactive mode. To truly succeed, more proactive and innovative detective measures must be devised and implemented. Strategies must be developed which enable investigators to track funds back to their point of origin and forward to terrorist strike teams. The challenge of identifying and disrupting funding flows is exacerbated by the variety of functional dimensions of terrorists. We are not dealing with terrorists as one dimensional individuals or organizations. Terrorists must be viewed in their functional roles. Functional roles include donors, fundraisers, facilitators, conduits, leaders, and jihadists to include operatives, martyrs and suicide bombers. Each function entails different funding requirements, relying on various funding streams to include both the formal and informal financial systems. If you’re in a detective position in government or industry in dealing with terrorist financing, the question to ask is…who are you most likely to deal with and in what capacity? This should factor into developing more focused disruptive strategies.

On the opposite side of the ledger or spectrum are anti-terrorist financing interests. From the perspective of the United States (U.S.), anti-terrorist financing interests should be placed in four broad rings. The inner ring consists of domestic government agencies. The second ring contains the domestic financial sector. The third ring encompasses the international government sector and international or regional organizations. The forth or outer ring is the international financial sector. Each of these rings or dimensions should be assessed individually in terms of their response to terrorist financing before being generically linked together and viewed from a global “terrorist financing” perspective.

Within the inner ring there are the law enforcement, intelligence, regulatory and diplomatic agencies possessing responsibility for terrorist financing. The first key in the U.S. to adequately addressing terrorist financing rests with interagency cooperation and coordination. The second key rests with the financial sector within the U.S. in terms of anti-money laundering and terrorist financing detective mechanisms. Germane to the success of the domestic financial sector is the level of cooperation and communication between the government and financial sectors. Government guidance is an important consideration. The third key, which is the most challenging key, lies with the international government community to include international and regional organizations such as the United Nations and the Financial Action Task Force. The appetite, willingness and wherewithal of the international community to deal with terrorist financing issues are critically important to the overall global response to terrorist financing. Consistent government to government, and international or regional organizational strategies must regularly be developed and implemented. U.S. government visibility and interaction with the worldwide government community is an important consideration. The forth key to adequately addressing terrorist financing rests with the international financial community. This sector must be reliant on cooperation and communication with the U.S. government and financial communities, as well as with the international government sector, to ensure a true global solution can be achieved.

When measuring the success of the U.S. government response to terrorist financing, the first consideration should be to assess its performance within the first ring or the foundation, that being the interagency community. In this regard the U.S. government deserves high grades, as validated by the 9/11 Commission report card grade of A-. With that stated, the U.S. government must strive to improve its interagency performance. The U.S. government should than be assessed against its interaction with each of the other three rings. With respect to the second and forth rings, the domestic financial and international sectors, respectively, the U.S. government deserves adequate grades. Areas where the U.S. government needs to improve include providing feedback and guidance concerning Bank Secrecy Act (BSA) reporting requirements and use BSA records. The area of greatest concern is the third ring, the international government sector. On balance, the international government community must do a much better job of attaining consistency and implementing meaningful global mechanisms to address the multitude of complex terrorist financing issues. It is not fair to hold the U.S. more responsible for global shortcomings than is deserved nor is it fair to evaluate the entire U.S. response based on global considerations without considering the totality of the U.S. government’s performance. However, the U.S., along with the global community, must step up significantly to establish forward thinking strategies and methodologies to disrupt the flow of funds to and from terrorists. A viable international response is critical to any level of success in truly diminishing terrorist funding streams.

The financial sector has done an adequate job of addressing BSA reporting requirements. Many institutions, entities and individuals in the financial sector deserve special credit and recognition for the level of cooperation they have demonstrated in assisting the U.S. government in various initiatives and in reporting suspicious activity. Overall, anti-money laundering programs within the industry have been fairly robust. Terrorist financing detection has been more challenging. The financial community has looked at terrorist financing through generic lenses as opposed to the multi-dimensional lenses required. One solution to this problem would be for the financial sector to develop and implement a specific terrorist financing training program. From training and understanding, better and more focused detective methodologies could be developed, tailored to the specific needs and dynamics of financial institutions.

Terrorist financing strategies and methodologies should be flexible and specifically focused with multi-dimensional considerations.

21 points in Maliki's program could confront terrorism in Iraq

By Walid Phares

In an interview with Radio Free Iraq, I reported that up to 21 points proposed in Prime Minister Maliki's program could become a solid base for an Iraqi war on Terror, if well implemented. The formation of a council for reconciliation, as a first item, indicates that negotiations among the main parties on this strategy have taken place for months. The text announced by PM Maliki thus is a result of discrete dialogue and has the consent of major players in the country. The conference of pro-government clerics to issue counter-fatwas in the near future is a powerful tool against the Jihadists. A proposed "Congress of heads of tribes against terrorism," is another tool, and the stipulation calling for support to "civil society groups" is also helpful. The adoption of a "rational discourse" by the media and government officials could become Iraq's war of words against the terrorists.

I note the "plan to end political assassinations, the political consensus against the Saddam supporters and the Jihadi Terrorists," and the contentious plan for amnesty is not really a general amnesty. There will be special committees to determine who didn't participate in war crimes, terrorism, etc., and there are special conditions for all those who would apply for amnesty, including a commitment for non-violence and support for elected government. The text asks Coalition forces to establish a mechanism to address human rights abuses. The program also addresses the problems of the victims of the Hussein regime, of the terorrists, and the war.

On the military level, the program calls for a fast-track building of Iraqi forces to prepare for the withdrawal of the coalition, thus affirming that the US withdrawal will be part of the rise of Iraqi forces. Perhaps the most daring declaration, by Iraqi standards, is the clear call for disarming the (Shiite) militias and the explicit naming of (Salafi) Takfiris as the "enemy."

You can listen to the interview in Arabic here.

Congressman's Move to Enforce Libya Settlement Survives...So Far (updated)

By Andrew Cochran

Last week, I reported here on the effort by Rep. John Sweeney to enforce the settlement between Libya and the families whose loved ones died at the hands of Libyan terrorists on PanAm Flight 103 and elsewhere. Rep. Sweeney proposed to block the normalization of relations with Libya, including the removal of Libya from the list of state sponsors of terrorism, until Libya made the final settlement payment to the families. It appeared that Rep. Sweeney's surprise proposal (the Bush Administration didn't know about it until the last minute) might lead to opposition from the Administration and certain House Members, due to concern over the possible impact on the diplomatic process to normalize relations. After much backstage wrangling and public pressure, it appears more likely this morning that the Sweeney amendment, Section 626 of the Science, State, Justice, Commerce appropriations bill, will survive and be enacted by the House before consideration by the Senate. Here is a "Washington Post" article today which reports Libya's disclaimer of any official responsibility for any remaining payment, coupled with an expectation by the State Department and some family members that Libya will still make the final payment on the settlement. The Sweeney amendment still must be adopted by the Senate, and opposition to it by key Senators and commercial interests is still quite possible. UPDATE: Rep. Sweeney addressed the House on his proposal, and passage by the House is now assured with the support of other key Members.

Iraq and National Reconciliation

By Bill Roggio

National Review Online invited me to participate in an online symposium about the Iraqi government's efforts to end the insurgency by offering a plan for national reconciliation. There has been much criticism of this plan as it is feared insurgents responsible for killing American soldiers will be given a pass for their crimes. But in a war, there is no option to allow for 100% punishment of enemy combatants; for example, hundreds of thousands of Nazis escaped judgment at the end of World War II Bringing warring parties to the table often calls for seemingly distasteful compromises, but the ultimate goal of the government in an insurgency is to affect a political settlement. al-Qaeda and the Islmaist terrorists are not the target of reconciliation, the domestic, nationalist elements of the insurgency are. Excerpted for the National Review Symposium:

National reconciliation is a political settlement to end an insurgency, and has been successfully implemented to end insurgencies throughout the world. If implemented properly, this will produce a clear rift between domestic, nationalist elements of the insurgency and the of al-Qaeda, Ansar al-Sunnah and the Islamist terrorists groups in the Mujahideen Shura Council. This will level a strategic defeat for al-Qaeda. Their image as the one true voice of the Arab and Muslim world will be shattered, as their own fellow Sunni travelers will have rejected their ideology in favor of a political settlement with the democratically elected government of Iraq. Seven insurgent groups have already agreed to the terms, and twelve more are seriously considering the offer.

Two of the insurgent groups, the Iraqi National Resistance 1920 Revolution Brigades, and Jaysh Muhammad (or the Army of Muhammad), are considered two of the largest and most influential insurgent organizations. The Sunni Endowment, “one of Iraq's largest Sunni Arab groups” is also said to support the reconciliation plan. The potential participation of these groups in reconciliation cannot be undervalued.

The Iraqi government's offer of reconciliation should not be viewed in isolation, but in context with recent developments in Iraq. Prime Minister Nouri al-Maliki is attempting to fulfill his pledge to restore order to the violence wracked nation. The Iraqi government has an opportunity to capitalize on the death of Abu Musab al-Zarqawi. The death of Zarqawi and follow on operations to dismantle al-Qaeda in Iraq's network gives the domestic, nationalist insurgent groups cover for their past activities. As al-Qaeda in Iraq remains in the spotlight, the lesser insurgent groups can claim al-Qaeda is the real perpetrator of the most heinous crimes, while they merely fought the “occupation forces.”

Combine the death of Zarqawi with the formation of the new government and the appointment politically acceptable ministers of interior and defense, as well as security operations to contain the insurgency in Baghdad (Operation Together Forward), Mosul, Basra and the flash point city of Ramadi, and the new Iraqi government is making a serious effort to quell the insurgency.

A positive outcome of recent security operations and the reconciliation proposal is by no means assured. al-Qaeda in Iraq and other terrorist groups have stepped up the bombing and mass killing campaigns in an effort to disrupt any political settlement and further the sectarian strife. The recalcitrant insurgent groups and terrorists will draw the long knives in an attempt to intimidate those who wish to lay down their arms, as they are traitors to the cause. The violence is very likely to increase over the next few months if insurgent groups do indeed accept the government's offer. Reconciliation is not a magic bullet to end the insurgency, but merely a step in the process.

Did Iran help in locating Zarqawi?

By Olivier Guitta

In fact, a credible Moroccan newspaper, La Gazette du Maroc, is affirming that Zarqawi was caught thanks to Iran and was the first gift to the US.

Sounds like a conspiracy theory? Maybe not.

Citing Iranian sources and Iraqi sources close to ex PM Alawi, the paper states that Jordanian intelligence may have gotten help from Iran in pinpointing Zarqawi's location. A few weeks ago the Iranian FM met with King Abdullah in Amman to allegedly negotiate the deal.
Then a few days later the Iranian FM was in Bagdad meeting with Iraki PM AL Maliki and allegedly US Ambassador Khalilzad.
Coincidence or not the US position softened around that time when for the first time Secretary of State Rice announced a possible ouverture to Iran.
People close to Reza Pahlavi, the Shah's son, also believe that Zarqawi was indeed handed by Iran as part of a package.

Keep in mind that this info is really very speculative but might not be as far fetched as one thinks.

More Troubling signs in Somalia

By Douglas Farah

The decision of the Islamist militias controlling Mogadishu to name a designated terrorist and known al Qaeda collaborator as its leader is another strong indication that, while the group may try to talk a moderate line, it has no intention of moderating it's radical, Taliban-style agenda.

Hassan Dahir Aweys was designated a terrorist supporter under Executive Order 13224, and has a long history of associating with Osama bin Laden and other Salafist groups. The International Crisis Group has the best field research available on him and his past activities.

The appointment could mean the marginalization of those within the Salafist movement and a reassertion of the most hardline elements. It is notable that the move was made while more international attention than usual is focused on the ebbing conflict in Somalia, where so far the Salafists have won in a rout. It could be interpreted as showing the newly-triumphant Salafists are willing to take whatever in-you-face moves necessary to consolidate their grip.
My full blog is here.

Congressional Terrorism-Related Hearings Include Testimony by Michael Cutler

By Andrew Cochran

The schedule of open Congressional committee hearings this week on terrorism-related matters includes a House Homeland Security Committee hearing at which Michael Cutler will testify on the topic, ""DHS Intelligence and Border Security: Delivering Operational Intelligence." Other hearings will review the status of the Afghanistan campaign, the crisis in Somalia, and the Iraqi WMD issue. The full schedule is below:

How will Russia react to the murder of its diplomats in Iraq?UPDATED 6/28

By Olivier Guitta

If confirmed, the murder of the four Russian diplomats taken hostage on June 3- three by beheading and the last one by shooting- by members of an Al Qaeda affiliate, may have important implications.
In fact, last week Russia had officially asked for the help of Palestinian terror group Hamas in this matter. The President of the Duma's Foreign Affairs Committee sent a letter to Hamas' political leader Khaled Mashal. Obviously this has not worked out.
Even though Russia has excellent relations with terror sponsor states in the region such as Syria and Iran, the Chechen isuue is still very much alive in the minds of Islamic terror groups who wish to help their Muslim brothers.
It will be interesting to see how Russia reacts to these murders. Indeed Russia has been known for dealing with sometimes excessive force to terrorists. And not only with Chechen rebels.
For example, in September 1985 when four Russian diplomats were kidnapped in Beirut by Hezbollah, the then USSR responded in kind by first abducting a family member of an Hezbollah leader and then killing him very very gruesomely. The hostages were given back right away and Russia was never targeted in Lebanon again.
Will Russia do the same today?

As suspected, Putin just gave the order to his special forces to hunt down and liquidate the killers of the four Russian diplomats.

Taliban losses in Afghanistan, gains in Pakistan

By Bill Roggio

The latest round of fighting in southeastern Afghanistan has claimed over 82 Taliban fighters in two separate engagements in Kandahar and Uruzgan provinces. Security Watchtower provides a breakdown of the estimated casualties of Taliban and Coalition forces in southeastern Afghanistan since the beginning of April. An estimated 600 Taliban have been killed and 22 captured, with 41 Afghan and Coalition security forces killed or wounded combined. The estimated Taliban casualties do not contain the number of wounded, which is often twice the number killed in combat.

Afghanistan UN Security Accessability Map (as of June 20, 2006).Click to view map, .PDF, approximately 1 Megabyte.

As the Coalition ramps up its forces and adds another 9,000 troops to the southeastern theater, the Taliban continues to take a pounding on the battlefield. The security situation in the region is fluid, but the Coalition is clearly gaining the upper hand as it moves forces and devotes energy into regions largely ignored by the central Afghan government. Coalition and Afghan sources estimate the Taliban strength between 2,000 to 5,000 active fighters, while the Taliban puts their strength at 12,000. Using the high Coalition estimate of 5,000 and an estimate of 1,800 Taliban killed and wounded, the Taliban has experienced a 36% attrition rate over the past three months. Using the Taliban estimate of 12,000 strong, the Taliban has experienced a 15% attrition rate. Both are frighteningly high numbers, and belie the reports of a sophisticated and powerful Taliban resurgence in Afghanistan.

To underscore this point, I sat in on a platoon level briefing prior to a Canadian assault earlier this month on the Dari and Panjwai districts in Kandahar province. Intelligence indicated the Taliban were massed in the hundreds, and possessed assault rifles, RPGs (rocket propelled grenades), mortars and other more sophisticated weaponry (I will omit the weapons for security purposes). The grunts of Charlie Company of the Princess Patricia's Canadian Light Infantry, mobile assault team and the tip of the spear for Canadian forces, laughed at the intelligence reports the Taliban possessed mortars and other weapons, as they have shown little inclination to bring these weapons to bear on the battlefield. Mortars are hardly sophisticated weapons, they are a staple weapon of platoon and company sized infantry units. That the Taliban cannot effectively deploy these weapons speaks volumes of their sophistication and training.

But the security situation in Afghanistan cannot be viewed in a vacuum; western Pakistan directly affects Afghanistan's stability. The Talibanization of western Pakistan's Northwest Frontier Province and Baluchistan has an impact of the situation in Afghanistan. The tribal agencies of North and South Waziristan are openly referred to as Talibanistan. Bajaur is a operational base and staging area into Afghanistan for mid-level al-Qaeda commanders, and senior al-Qaeda command (bin Laden and Zawahiri) are believed to be operating from nearby Dir.

“The Taliban’s sphere of influence has expanded to [the tribal agencies of] DI Khan [Dera Ismail Khan], Tank and the Khyber Agency, where clerks of the area have started to join them. There has been a sharp increase in attacks on heavily-defended military targets in these areas as well,” said Pakistani Interior Minister Aftab Khan Sherpao last April. Coalition and Afghan commanders and government officials have openly stated the Taliban senior command are operating from the city of Quetta in Baluchistan, and have given the Pakistani government addresses of the location of senior Taliban leaders.

The Talibanization of western Pakistan continues. In a sign the Pakistani government is operating from a position of weakness, the government is proposing yet another ceasefire with the Taliban, while local Islamists bomb "a computer and a music centre" in Dir and a bazaar in Dera Ghazni Khan. Last week a suicide fuel truck bomb detonated in the Afghan province of Nangahar after crossing from Khyber agency in Pakistan.

It is no accident the most troubled provinces of Afghanistan reside on the border with Pakistan. The latest United Nations Afghanistan UN Security Accessibility Map (as of June 20, 2006) perfectly illustrates this point. The red & yellow band in Helmand, Kandahar, Uruzgan, Ghazni, Zabul and Paktika province is scene of Operation Mountain Thrust. The eastern Afghanistan provinces of Kunar, Nuristan and Nangarhar is in the American zone of operations, and the scene of the ongoing Operation Mountain Lion. And while the map appears dire at first glance, the United Nations, a risk adverse organization, considers the oranges zones as "representing a manageable level of risk with the application of more detailed and security measures." The UN considers a small fraction of Afghan territory as a "not accessible" or "no-go" zone.

Ayman al-Zawahari, al-Qaeda's second in command, recent videotapes underscores the al-Qaeda's position in western Pakistan. Far from living in a cave, Zawahiri has access to the daily news and Internet, as well as a production facility to make high quality video products. The tape where Zawahiri lashes out against Afghan President Hamid Karzai and calls for a general Afghan uprising against the Coalition clearly cites the May 26th accident in Kabul. The turnaround time between the incident and the release of the tape is about three weeks. Zawahiri clearly is confident in the security of his line of communications. His actions indicate he has nothing to fear from reprisal from the Pakistani military or intelligence units.

Reports of US Monitoring of SWIFT Transactions Are Not New: The Practice Has Been Known By Terrorism Financing Experts For Some Time

By Victor Comras

Yesterday’s New York Times Story on US monitoring of SWIFT (Society for Worldwide Interbank Financial Telecommunication) transactions certainly hit the street with a splash. It awoke the general public to the practice. In that sense, it was truly new news. But reports on US monitoring of SWIFT transactions have been out there for some time. The information was fairly well known by terrorism financing experts back in 2002. The UN Al Qaeda and Taliban Monitoring Group , on which I served as the terrorism financing expert, learned of the practice during the course of our monitoring inquiries. The information was incorporated in our report to the UN Security Council in December 2002. That report is still available on the UN Website. Paragraph 31 of the report states:

“The settlement of international transactions is usually handled through correspondent banking relationships or large-value message and payment systems, such as the SWIFT, Fedwire or CHIPS systems in the United States of America. Such international clearance centres are critical to processing international banking transactions and are rich with payment information. The United States has begun to apply new monitoring techniques to spot and verify suspicious transactions. The Group recommends the adoption of similar mechanisms by other countries.”

Suggestions that SWIFT and other similar transactions should be monitored by investigative agencies dealing with terrorism, money laundering and other criminal activity have been out there for some time. An MIT paper discussed the pros and cons of such practices back in 1995. Canada’s Financial Intelligence Unit, FINTRAC,, for one, has acknowledged receiving information on Canadian origin SWIFT transactions since 2002. Of course, this info is provided by the banks themselves.

While monitoring SWIFT-handled transfers is a useful tool in identifying and tracking certain suspicious transactions, its importance should not be overstated. The information in SWIFT’s hands is no better than the information which it is provided by the banks handling the transactions at both ends. And there is already an obligation on banks in the US and Europe to report all “suspicious transactions” The problem is that FINCEN and the corresponding FIUS in other countries have simply been overwhelmed by the enormous amount of transactions that are reported to them (see my earlier blog) Another problem is that European Banks are just getting around to providing (and requiring) information, such as names, account numbers and addresses of originators and recipients of transactions channeled or handled by them through SWIFT or other international transfer facilitators (see my earlier blog). And most banks outside of Europe, the United States and other OECD countries, still do not require, or verify, such information.

The fact is that there is really very little privacy today when it comes to the international transfer of funds. That is why criminal networks, money launderers and terrorist groups have increasingly turned to Hawalas and cash couriers for such transactions.

U.S. Government Terrorist Financing Initiative Involving SWIFT (updated)

By Dennis Lormel

This morning, media reports disclosed the U.S. Government’s use of the SWIFT network in furtherance of its terrorist financing initiative. My initial reaction is one of pride and despair. As a former government official, I was involved in this program. On one hand, I’m proud of the notable work performed and what has been accomplished. On the other hand, I’m disappointed and concerned that the media felt compelled to run another story that undermines National Security in the fight on terrorism by disrupting and diminishing an important investigative tool.

By way of background, the Society for Worldwide Interbank Financial Telecommunications (SWIFT) provides electronic messaging services that direct financial transactions worth trillions of dollars a day among around 7,800 financial institutions throughout the world. As detailed in the various media reports, the Treasury Department has been receiving SWIFT information since shortly after 9/11. Personally, I’m astounded that the program has remained confidential this long. It was an innovative and remarkable program. As custodian of the program, Treasury provided the SWIFT information to the CIA, who managed the program. The FBI, in conjunction with the CIA and Treasury, exploited financial information to thwart terrorists, exposing them to areas of financial vulnerability.

For my colleagues who have been skeptical of the U.S. Government’s efforts in terrorist financing, this program, the cooperation with other financial providers, such as First Data Corporation and Western Union, contributed significantly to the A- grade given the Government for Terrorist Financing by the 9/11 Commission. Many of the successes achieved in terrorist financing have not reached the public domain. The anonymity afforded, up until this point, has provided the interagency community the opportunity to continue to exploit terrorists through their financial vulnerabilities.

As more information becomes known and as subject matter experts and the media assess the program, they should not lose sight of the fact that the program was strictly monitored and audited. The field of information actually reviewed was quite minimal in comparison to the universe of SWIFT records that exist. SWIFT records were provided to the Treasury Department in accordance with Office of Foreign Assets Control (OFAC) subpoenas. This initiative was operated in accordance to the law. Before rushing to judgment, critics should appreciate the level of scrutiny and accountability that was put in place to ensure SWIFT information was used solely for terrorist investigative purposes. In addition, assertions that the information reviewed did not lead to positive results would be wrong.

As this situation unfolds, the question should again be posed as to why the media felt compelled to publish a story that undermines National Security by exposing a viable investigative technique to terrorists. A productive and important investigative mechanism has been disrupted and greatly diminished. Once again, why is the media more seemingly concerned about the need to inform the American public about terrorist intelligence operations that involve public records than they are about the adverse impact the report has on National Security?

Not to end on a troubling note, its time to applaud the interagency community, in this case, particularly the Treasury Department, CIA and FBI for outstanding investigative initiative with respect to the execution of the SWIFT program. The interagency cooperation and team work was unwavering throughout the last five years. Many successes were quietly achieved by a group of true unsung heroes. Well done guys!

UPDATE: See statements by Treasury Secretary Snow and Under Secretary Levey - see webcast of their press conference