Getting a Better Handle On Terrorism Financing

By Victor Comras

On Tuesday (Sept 28th) the House Subcommittee on Financial Oversight and Investigations held hearings on Current and Evolving Trends in Terrorism Financing. The Subcommittee members were particularly interested in the effect of US efforts to combat terrorism financing. I had an opportunity to testify at these hearings and to describe some of the more serious shortcomings A copy of my testimony is contained below:

High Frequency Trading as a Cyber-War Weapon

By Roderick Jones

As the SEC and the Commodity Futures Trading Commission prepares to jointly produce its long-awaited report on the “flash crash” of May 6th it is worth considering some of the security risks that are attached to the practice of High Frequency Trading.

In the past I have used the CT Blog as a forum to discuss and present ideas on future security threats, from virtual worlds to hacking commercial airliners. These ideas have been presented because technological advance has produced a paradigm shift for national security authorities to manage. The introduction of algorithmic and high frequency trading has the potential to create security risks consistent with this theme. For now the most interesting security vector is how high frequency trading can be used as a kind of Denial of Service attack against financial exchanges. This is clearly of some interest to the cyber-warfare community in terms of offense and defense. Other lesser security themes have presented themselves around this topic and a blog/white paper is available on the topic here.

In the Washington TImes on Reconsidering Aid to Pakistan

By Aaron Mannes

The Washington Times just ran a piece by my colleagues and I on reconsidering aid to Pakistan.

Black hole for foreign aid
As U.S. funds increase, so does terrorism
By V.S. Subrahmanian, Aaron Mannes and Amy Sliva -
The Washington Times7:00 p.m., Friday, September 24, 2010

As Pakistan approaches the international community for massive assistance for the third time in six years, donors face difficult choices. Three disasters, starting with the 2005 earthquake in Kashmir, then the 2008 financial crisis, and now the massive flooding, were not Pakistan's fault. Nevertheless,

as violence and terrorism emanating from Pakistan increase, donors must ask if aid to Pakistan is improving international security.

According to aiddata.org, the international community (including international aid groups but excluding the United States) provided nearly $22 billion in international aid from 2004 through 2008 (nearly $2.5 billion in 2004, increasing to more than $7 billion in 2008). Since Sept. 11, 2001, the United States has, according to the Congressional Research Service, provided more than $18.5 billion in aid to Pakistan. Of this aid, more than $12.5 billion was military. Supposedly this aid to Pakistan is essential for counterterrorism.

But based on the numbers, it is difficult to argue that international aid to Pakistan is reducing terrorism. According to the National Counterterrorism Center's World Incidents Tracking System, which monitors noncombatant casualties of terror attacks, there was an enormous jump in terror attacks by Pakistani perpetrators from 2004 through 2008. In 2004, 110 Pakistani noncombatants were killed in terror attacks. In 2008, nearly 900 were killed. Some of this can be explained by the civil war between the Pakistani Taliban and the government. Nonetheless, the recent spate of bombings in Pakistan, which have killed at least 75 members of Pakistan's Shia minority, show that despite substantial security aid, the government remains unable to protect its citizens.

There also has been a jump in attacks by Pakistani perpetrators outside of Pakistan, including the 2006 and 2008 attacks in Mumbai. Combined, these two incidents claimed nearly 400 lives. Beyond the immediate carnage, these attacks increased the possibility of open war between the nuclear-armed rivals Pakistan and India. Further, a number of international terror plots, such as the 2006 airplanes plot and the recent Times Square car-bombing attempt, have been linked to Pakistan.

Pakistan has played important roles in counterterror efforts, particularly protecting NATO supply lines to Afghanistan and its own operations against the Pakistani Taliban, which have claimed the lives of more than 2,000 Pakistani troops since Sept. 11. However, despite these losses, Pakistan's priority is not counterterrorism - it is India.

When India detonated a nuclear device in 1974, then-Pakistani Prime Minister Zulfikar Ali Bhutto stated, "Even if we have to eat grass, we will make nuclear bombs." Despite possessing the ultimate deterrent, Pakistan continues high levels of military spending in its impossible race for parity with larger and wealthier India. This has led to persistent fiscal deficits and low spending on social services. International aid is no substitute for sound domestic policies.

Read the complete post here.

The Death of the FARC's Jorge Briceño Is a Blow to Latin American Terrorism

By Douglas Farah

The Colombian government just passed an historic milestone in its decades long fight against the FARC - a successful airstrike that killed Jorge Briceño, AKA Mono Jojoy, the group's most successful military commander ever. But he was more than that, and his death is a significant strike against terrorism in Latin America.

Briceño was the architect of the FARC's transition from Marxist insurgency to drug trafficking terrorist organization in the early 1990s as a method of survival. It was Briceño who moved his Southern Front (followed by the rest of the FARC) into kidnapping and an almost-total dependency on cocaine trafficking. He targeted Americans, along with the hundreds of Colombian hostages he plucked off. He was remorseless about the human suffering he caused, viewing it as a cost of war. He was the architect of the FARC becoming a true terrorist organization.

Briceño, who commanded great loyalty among the FARC rank and file, was born into the FARC, and has a brother, German, who is also a senior FARC commander. German, who kidnapped and murdered three Native American activists with the consent of Jorge, has been identified by Colombian authorities as one of the FARC commanders under the protection of Venezuelan president Hugo Chávez in Venezuelan territory.

As a commander, Briceño pioneered the use bombs made of gas canisters that were used to incinerate rural villages, as well as inflict significant damage on the military. My full blog is here.

Counter-Terrorism Offensive in Indonesia

By Kenneth Conboy

This past weekend, Indonesia's police counter-terrorism unit, Special Detachment 88, conducted a series of dramatic raids across North Sumatra province targeting a 33-strong band of terrorists who had perpetrated a series of bank robberies since mid-year. Thus far, 20 suspects have been caught and three shot dead. Of those captured, seven were trained at a paramilitary camp discovered in Aceh Besar district, Aceh province, last February. The others were apparently trained in the jungle near Mount Sinabung, a recently-active volcano in North Sumatra.

This terrorist group, which reportedly has ties to detained firebrand cleric Abu Bakar Ba'asyir, has proven itself to be heavily armed with assault rifles. What's more, they have shown a level of aggression and coordination not normally associated with standard criminals. According to the police, the group had targeted more banks, money changers, and show rooms for the medium-term; apparently, they appear to be focusing on fund raising through criminal activities rather than attacking Western interests.

During the early morning hours of 22 September, an estimated 10-12 well-armed persons using 6-8 motorcycles attacked the Hamperan Perak police post in Deli Serdang district, North Sumatra province. Three police officers were killed and the building was destroyed by Molotov cocktails. This attack almost certainly was conducted by the remnants of the terrorist cell mentioned above as revenge for the capture/killing of their co-conspirators. It would appear to indicate that virtually all of those still being pursued by the police were in the Deli Serdang vicinity as of yesterday. It would also underscore the fact that this cell continues to concentrate on domestic targets rather than expatriates.

Indian Mujahideen is Back to Threaten Commonwealth Games?

By Animesh Roul

Indian capital New Delhi had a major security scare on September 19, days ahead of scheduled Commonwealth Games when two bike-borne armed assailants fired indiscriminately at a bus carrying foreign tourists near the Gate No 3 of historic Jama Masjid (Mosque), located in the walled city. Two Taiwanese nationals have sustained injuries in the incident.

Hours after the incident, Indian Mujahideen terrorist group has issued a media statement threatening to sabotage the Commonwealth Games. The message however, made no direct reference to today’s firing incident. It threatened to sabotage the Games to avenge atrocity against Muslims in the country and the recent violence in Kashmir.

Excerpt of the statement (compiled from media reports):
The purported email is signed by one Al-Arbi and has been sent from the mail id al.arbi999123@gmail.com.

“Since July, the Paradise on earth, ‘Kashmir’ is being soaked with the blood of its sons. The Indian occupying forces have not spared the life of 8 years old boys to 80 years old elderly person or hapless Muslim women either. The death toll has already surpassed a hundred innocents…The Indian Mujahideen has finally decided to avenge the blood of each and every brother and sister as its topmost priority and duty towards the Ummah and Allah above all. Remember! As we bleed, so will you seep.”
“…We warn you to host the Commonwealth games if you have a grain of salt. We know that preparations for the games are at its peak; beware!! We too are preparing in full swing for a Great Surprise! The participants will be solely responsible for the outcome, as our bands of Mujahideen love death more than you love life. In Kashmir you have succeeded in usurping our Right of self-determination with all your Chanakya policies.”
“In the name of Allah we dedicate this attack of retribution to martyrs, Shaheed Atif Amin and Shaheed Muhammad Sajid.”

Both Atif Amin and Muhammad Sajid were killed during the Batla House encounter on 19 September 2008.

Meanwhile, Delhi police has indicated that firing incident was a criminal act, perhaps attempting to avoid concern over the security situation ahead of the CW games. It also downplayed the terror email sent to media houses purportedly by the IM.

Police though sounds little cautious and wants not to portray a panic picture for foreigners and visitors during the forthcoming CWGames, Sunday’s firing incident could be a handiwork of IM suspects who by attacking foreigners sent a clear message across the world that Delhi is not a safe place for them and the place is under terror radar.

In June 2010, Indian government proscribed Indian Mujahideen and all its formations and front organizations under the Unlawful Activities (Prevention) Act, 1967. IM which is actually a shadow organization of Pakistan based Lashker-e-Taiba and Student Islamic Movement of India (SIMI) has perpetrated series of attacks in various urban centers of India in 2008.

The investigation is on and as usual it would take sometime for the Delhi police to unravel the case.

Murder in London - Fire in Karachi

By Aaron Mannes

A murderous stabbing in London could have profound geopolitical consequences. Yesterday, Imran Farooq, one of the senior leaders of the Muttahida Quami Movement (MQM) was stabbed to death in London. MQM is a major Pakistani political party representing the Mohajirs (the Muslims who left India for Pakistan in the 1948 partition.) The MQM is particular strong in Karachi where the Mohajirs are a plurality of the population and the MQM dominates the city government.

Farooq, along with the MQM’s founder Altaf Hussein ran the party from a self-imposed exile in London. In 1992, in the wake of massive fighting between the Mohajirs and the Sindh the Army cracked down on the MQM and the party leaders decamped to London.

Karachi in recent times has been prone to large-scale outbreaks of violence. Now much of the fighting is between the growing Pashtun population and the Mohajirs.

Turmoil in Karachi matters – it is the great port and economic engine for Pakistan. Karachi has frequently burst into riots over the past several years. The city is clearly tense now. Turmoil in Karachi will complicate flood relief and long-term makes it difficult for Pakistan’s economy to right itself. Considering the precarious state of the entire country, this is no small matter.

Whodunnit?

Read the complete post here.

Indonesian Counter-Terrorism Forces Reorganized

By Kenneth Conboy

On 15 September, the Indonesian National Police announced that it was reorganizing its counter-terrorim forces as part of a wider restructuring effort. Effective this week, Special Detachment 88, which had previously been part of the detectives division, will now answer directly to the chief of the National Police.

Several observers immediately lauded this change, noting that it will enhance transparency associated with foreign funds (mainly from the U.S. and Australia) used to support Special Detachment 88.

It should be noted that police counter-terrorism units have been subject to much criticism in recent months. First, they were deemed too quick to kill, rather than capture, many of the top terrorist leaders over the past year.

Second, counter-terrorist units deployed at the provincial level have often been used on duties not tied to terrorism--such as arresting foreign fishermen poaching in Indonesian waters. They have also been accused of torturing separatist leaders in prison.

The reorganization involving Special Detachment 88 follows last month's creation of the National Anti-Terrorism Agency (known by the initials BNPT) in Jakarta. This new agency will focus largely on "de-radicalizing" captured terrorists, which has been seen as a priority after several released extremists were found to have been repeat offenders.

ON SEPTEMBER 11 WE REMEMBER THE VICTIMS OF TERRORISM AND WHAT STILL NEEDS TO BE DONE TO COUNTER TERRORISM

By Victor Comras

September 11th has become a day of remembrance for all victims of terrorism and a poignant reminder of the constant threat posed by all those that would use terrorist tactics in the furtherance of their ambitions, their ideologies, or their political or religious goals. This day stands among a growing number of sad anniversaries that mark senseless killing and maiming in furtherance of some intolerant cause. It is also a day to take stock of the imperfect steps, and the uneven progress made, in countering this terrorism scourge.

The human, social, and economic costs of terrorism are staggering. Estimates put the world wide number of terrorist attacks since 1963 at well over 15,000, resulting in more than 25,000 casualties. Governments have spent well into the hundreds of billions of dollars to prevent, defend against, and fight terrorism; and to provide security for their interests at home and abroad. Private businesses have also expended additional billions to secure their premises and personnel from terrorist attacks, and the world’s financial community has invested billions more on regulatory compliance measures to police accounts and transactions in order to steer clear of counter terrorism and money laundering issues. There has also been a staggering impact on global economic activity and development. Yet, despite these efforts, terrorism continues to pose a worldwide threat.

Since 9/11 we have remained relatively safe within our own national borders. Yet, hardly a day passes without some roadside explosion, suicide bombing, or other terrorist attack elsewhere in the world being reported. And, we all recognize that we cannot let our own guard down even for a second. So, while we have accomplished much, so much remains to be done.

Next week the 65th session of the General Assembly of the United Nations will convene in New York, and international terrorism will again be a prominent issue on its agenda. Several will use the General Assembly platform to call for greater efforts to eliminate what they deem are “the root causes of terrorism.” They want the focus to be on the economic, social and political conditions that they believe give rise to terrorism, rather than on matters of compliance and accountability. Yet, we cannot wait for the ills of the world to be cured before confronting terrorism, and while each step addressing such ills is admirable, we can never accept that discontent ever justifies acts of terrorism. Compliance and accountability must remain the United Nations highest priority and greatest focus.

Many of the speakers will refer to the various Security Council resolutions and 16 international conventions that have outlawed terrorism and that obligate all countries to adopt measures to prevent terrorism and the financing of terrorism. But, undercutting these measures is the fact that there is still not “common ground” as to what constitutes terrorism and who the terrorists are. So far that consensus only extends to Al Qaeda and the Taliban, and those groups and individuals identified and listed by a UN Sanctions Committee as associated with them. Beyond those listed there continues to be substantial disagreement that allows certain countries to continue to provide support and material assistance to groups, such as Hamas and Hezbollah, that use “violence to kill and damage indiscriminately to make a political or cultural point and to influence legitimate Governments or public opinion unfairly and amorally.” This lack of consensus has, in turn, severely limited the United Nations ability to monitor compliance with the counter-terrorism measures that it has adopted or to hold countries accountable for failing to implement and enforce them.

Truth be said, there are already a multitude of definitions of terrorism now being applied by one country or another. Almost every country has its own, and several countries use more than one, depending on the circumstances. This has left each country free to pick and choose who they wish to deem terrorists and who they prefer to call something else, such as “national liberators” or “freedom fighters.”

Many pundits have emphasized the likely impossibility of coming up with a universal definition of terrorism that can capture all its elements and/or satisfy all those charged with its application. But, such precision is not really required for UN purposes, and can be left for each country to more fully develop and apply on its own. However, it is critical that the counter-terrorism norms provided for the international community by the United Nations contain sufficient criteria describing the elements of terrorism to provide some standard by which to hold all countries equally accountable.

Combating Export Violations to Iran

By Matthew Levitt

Last month a senior U.S. delegation visited key world capitals to stress the risks incurred by foreign banks as they continue to do business with Iran. Indeed, Tehran -- mirroring the Iranian banking sector's deceptive financial practices -- has successfully evaded sanctions by setting up a network of front companies, procurement agents, businesses, and transporters as a means of procuring controlled military and dual-use technologies. Of equal concern are the re-export loopholes through which Iran has successfully evaded sanctions in the past.

Yesterday, the Washington Institute's Stein Program on Counterterrorism and Intelligence hosted Assistant Secretary of Homeland Security and Director of U.S. Immigration and Customs Enforcement (ICE) John T. Morton to discuss "Combating Export Violations to Iran: The Role of ICE Homeland Security Investigations." This event was part of the Institute's ongoing lecture series with senior U.S. counterterrorism officials.

Mr. Morton's prepared remarks are available here. An audio link is available here.