Money Laundering Laws: The Practical versus the Technical

By Dennis Lormel

On June 2, 2008, the U.S. Supreme Court (Court) narrowed the focus of federal money laundering laws by ruling against the government in two money laundering cases. In pursuing these and most cases, law enforcement and prosecutors regularly employ a...

U.S. Supreme Court Rules Against Government in Two Money Laundering Cases

By Dennis Lormel

This morning, the U.S. Supreme Court ruled against the government in two money laundering cases. In one case the Supreme Court overturned the money laundering conviction of Humberto Cuellar, who was convicted following his arrest in 2004, in Texas, while...

Two Easily Exploitable Vulnerabilities of Money Services Businesses

By Dennis Lormel

Money Services Businesses (MSBs) provide important services to a large segment of our society. According to FinCEN, MSBs refer to five distinct types of financial services providers: currency exchangers; check cashers; issuers, sellers, or redeemers of traveler’s checks, money orders...

The Foreign Intelligence Surveillance Act (FISA)…Out of Sight, Out of Mind

By Dennis Lormel

In February, The House of Representatives failed to follow the Senates lead and vote to pass FISA legislation. Instead, they chose to allow this valuable intelligence collection tool to expire. In so doing, they made the intelligence collection capability of...

Terrorists and Credit Card Fraud…a Quiet Epidemic

By Dennis Lormel

A few weeks ago while conducting research for a client; I came across a newspaper article from Toronto that immediately caught my attention. It reported the arrest of four men on charges of debit and credit card fraud for possessing...

Shell Companies: Contemplated Legislation an Encouraging Sign

By Dennis Lormel

Shell companies present a serious systemic vulnerability as a facilitation tool for fraud, money laundering and terrorist financing. I posted an article on the Counterterrorism Blog addressing the vulnerability of shell companies in April, 2007. Senator Carl Levin, Chairman of...

The Intelligence Bill Should Not Be Held Hostage by Politics

By Dennis Lormel

The Senate did the right thing early last week and put politics aside. They passed the Foreign Intelligence Surveillance Act (FISA). This legislation would have given the intelligence community broad authority to monitor telecommunications of suspected terrorists. Since having been...

Credit Cards and Terrorists

By Dennis Lormel

As Imam Samudra sits on death row in Indonesia nearing his execution date for masterminding the Bali Nightclub Bombings in 2002, we should remember him not just as a murderous terrorist but also as a technology savvy computer expert. It’s...

Criminal Investigation of CIA Tape Destruction

By Dennis Lormel

The steps taken thus far by the Department of Justice in initiating a criminal investigation have been prudent and well thought out. The Department conducted an appropriate preliminary inquiry based on which it determined a criminal investigation was warranted. The...

Looking Back and Forward at Money Laundering and Terrorist Financing...Continued

By Dennis Lormel

Yesterday I posted select observations about money laundering and terrorist financing looking back at 2007 and forward to 2008. I inadvertently omitted an emerging banking business that warrants discussion. During 2007, Islamic Banking continued a growth trend. Major western banks,...

Looking Back and Forward at Terrorist Financing and Money Laundering Highlights

By Dennis Lormel

As 2007 ends and we embark into 2008, a look back at the past year and forward to the coming year offers interesting observations about terrorist financing and money laundering. An issue that has been constant and was certainly prevalent...

Reflections Concerning National Security

By Dennis Lormel

The assassination of Benazir Bhutto once again demonstrates how fragile life is. It also reinforces how vulnerable democratic and open societies and those seeking free societies are to devastating terrorist attacks. This underscores the importance of national security. The intelligence...

Perspectives on Criminal and Terrorist Money Laundering

By Dennis Lormel

When developing, implementing or modifying Anti-Money Laundering (AML) strategies, it is important to understand who and what you are dealing with. Who is the enemy and what is the threat they pose? In the post 9/11 world, this is an...

Understanding and Disrupting Terrorist Financing - Individuals and Cells

By Dennis Lormel

This is the fifth in a series of five articles. In order to disrupt terrorist financing, there must be a more comprehensive understanding of the multi-dimensional elements involved in the funding process. The first article in this series provided an...

Observations Concerning the Defense Department’s Study on Disrupting Terrorist Financing

By Dennis Lormel

My colleague Andy Cochran, wrote an excellent article posted on the Counterterrorism Blog on October 12 2007. It was a succinct summary and assessment of the newly released report by the Defense Department which is a Study on Disrupting Terrorist...

Understanding and Disrupting Terrorist Financing - Mechanisms For Fundraising and Operations

By Dennis Lormel

This is the fourth in a series of five articles. In order to disrupt terrorist financing, there must be a more comprehensive understanding of the multi-dimensional elements involved in the funding process. The first article in this series provided an...

Is the Holy Land Foundation Trial Heading Toward a Mistrial?

By Dennis Lormel

Is the Holy Land Foundation (HLF) case headed toward a mistrial? If so, how does that impact the government with respect to pursuing terrorist financing cases? Likewise, do prosecutors retry the HLF case? These questions were posed to me today...

Impediments to Making Us Safer

By Dennis Lormel

On September 12, I posted an article on the Counterterrorism Blog addressing the question “are we safer as a nation now than we were before 9/11”. I stated that we were safer but not safe, which is a prevailing theme....

Holy Land Foundation...A Thought Before Final Arguments

By Dennis Lormel

I was contacted today by a reporter who noted that the final arguments in the Holy Land Foundation trial are scheduled for Monday. He inquired about the importance of this case in the government’s anti-terrorism campaign. I posted an article...

Becoming a Safer Nation is an Incremental Process

By Dennis Lormel

With the somber remembrance of the 9/11 terrorist attacks, the question is always posed “are we safer now then before 9/11?” The invariable answer is we are safer, but not safe. We’re not safe because we are an open society...

Understanding and Disrupting Terrorist Financing: Funding Capacity

By Dennis Lormel

This is the third in a series of five articles. In order to disrupt terrorist financing, there must be a more comprehensive understanding of the multi-dimensional elements involved in the funding process. The first article in this series provided an...

The National Drug Intelligence Center…Effective or Ineffective?

By Dennis Lormel

Is the National Drug Intelligence Center (NDIC) effective or ineffective? Does it duplicate the analytical reporting of other government agencies? What does any of this have to do with terrorism? NDIC was established in 1993 as an independent component of...

Holy Land Foundation…Dispelling the Myths

By Dennis Lormel

The U.S. based charity Holy Land Foundation (HLF) went on trial this week, along with seven individuals who were principals of HLF. They were indicted in 2004 for providing material support to terrorists, namely to HAMAS. The trial began with...

Understanding & Disrupting Terrorist Financing: Types of Terrorist Groups

By Dennis Lormel

This is the second in a series of five articles. In order to disrupt terrorist financing, there must be a more comprehensive understanding of the multi-dimensional elements involved in the funding process. The previous article provided an overview of four...

Understanding and Disrupting Terrorist Financing

By Dennis Lormel

To achieve a meaningful and consistent impact in disrupting terrorist financing, there must be a better understanding of the multi-dimensional elements involved in the funding process. Understanding begins with training. This holds true for the government, business and financial sectors....

Bank Secrecy Act and National Security

By Dennis Lormel

I frequently speak to financial sector groups at Anti Money Laundering (AML) conferences and financial institution training sessions about terrorist financing. Among the points I stress is that terrorist groups require financial support in order to achieve their goals. They...

Shell Companies…Facilitation Tool for Money Laundering and Terrorist Financing

By Dennis Lormel

In January 2007, I was contacted by Elizabeth MacDonald from Forbes magazine concerning an article she was researching. Elizabeth inquired if I was aware of any terrorist financing cases that involved use of domestic shell companies. Unfortunately, without hesitation, the...

The Investigation of the Virginia Tech Shootings

By Dennis Lormel

Why is it that a number of media representatives reporting on the Virginia Tech shootings continue to work the blame angle? It amazes me that whenever there is a tragic incident like Monday or 9/11, we have to rush to...

Aftermath of the Virginia Tech Shootings

By Dennis Lormel

What a horrible event. As the sobering reality and magnitude of the tragedy set in, will campus life ever be the same again? Should it ever be the same? Hopefully, the Virginia Tech community will come together, gain strength and...

Understanding and Simplifying Terrorist Financing

By Dennis Lormel

In the most basic sense, terrorist groups require funding to achieve their goals. They must have effective financial infrastructures to include: • Sources of funds • The means to launder funds • The availability of funding This is a pretty...

The Appropriate Next Steps Concerning the FBI’s National Security Letter Scandal

By Dennis Lormel

In the aftermath of the Department of Justice, Inspector General (IG) report concerning serious deficiencies in the FBI’s use of National Security Letters (NSLs), what should be done? I believe four steps must be taken. The first step is to...

National Security Letters...An Important Investigative Tool for the FBI

By Dennis Lormel

Periodically, media stories appear articulating a sense of concern about the increased use of National Security Letters (NSLs) by the FBI since 9/11. Civil libertarians and critics of the FBI use these reports as a platform to voice apprehension about...

Iran, Syria, Hezbollah…At What Point Accountable

By Dennis Lormel

According to Wikipedia, willful blindness is a term used in law to describe a situation in which an individual seeks to avoid civil or criminal liability for a wrongful act by intentionally putting himself in a position where he is...

What Makes America Great?

By Dennis Lormel

Sports, commitment, work ethic, virtue, integrity, honor, patriotism…All of those denominators were present on Saturday afternoon in Philadelphia. To say I’m a sports fanatic is an understatement. There are a select group of sporting events during the course of the...

The FBI Does Know the Difference between Sunnis and Shiites (corrected 12/6)

By Dennis Lormel

Last night, the NBC Nightly News featured a report that left the inference that the FBI has significant problems in their Counterterrorism operations because certain officials could not distinguish between Sunni and Shiite Muslims. In addition, the report focused on...

FinCEN Director Bob Werner to Leave His Post

By Dennis Lormel

Robert W. Werner, Director, Financial Crimes Enforcement Network (FinCEN) announced his resignation on November 21, 2006. FinCEN is the United States’ Financial Intelligence Unit (FIU) and plays an important role in the government’s anti-money laundering and terrorist financing efforts. Mr....

Thanks to the Dedicated Public Professionals Who Keep Us Safe

By Dennis Lormel

On this somber date, five years after the horrific terrorist attacks of 9/11, we should stop and recognize the dedicated professionals who strive to keep us safe. • First and foremost, the military personnel who so valiantly defend our freedom...

Lebanon…Let's Stop the Tap Dance

By Dennis Lormel

The Israelis need to accept responsibility for the bombings that have killed innocent Lebanese citizens. Likewise, Hezbollah, Syria and Iran need to be accountable for causing the crisis which resulted in the deaths of so many innocent people. At what...

Hezbollah...Fundraising or Security Threat in U.S. ?

By Dennis Lormel

Do the escalating hostilities in the Middle East between the Israelis and Hezbollah cause additional security concerns within the United States (U.S.)? As increasing pressure is placed on Hezbollah in Lebanon, do Hezbollah operatives in the U.S. pose a greater...

Continued Debate over the SWIFT Disclosure by the New York Times

By Dennis Lormel

Following the New York Times article disclosing the U.S. Government’s SWIFT monitoring program, the Bush Administration harshly criticized the Time for publishing the article when the Government requested the story be withheld. The Times was strongly taken to task for...

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....

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....

Initial Comments about Terrorist Financing and “The One Percent Doctrine”

By Dennis Lormel

Over the past few days, there have been numerous articles and reports about a newly released book entitled, The One Percent Doctrine, written by Ron Suskind. I have not had the opportunity to read the book yet but have read...

Senior Executive William Langford to Leave FinCEN

By Dennis Lormel

William Langford, Associate Director of Regulatory Policy and Programs, Financial Crimes Enforcement Network (FinCEN), will be leaving the agency next month to join JPMorgan Chase & Co. This represents the second significant personnel loss at FinCEN since February when former...

The UAE?USA?Important Allies

By Dennis Lormel

Port security is an important issue that warrants ongoing consideration and concern. On the surface, hearing the news that a UAE company, Dubai Ports World, was purchasing the company operating six U.S. ports was cause for concern. However, when placed...

Robert Werner Appointed as Director of FinCEN

By Dennis Lormel

U.S. Treasury Secretary John Snow named Robert (Bob) Werner as the new Director of the Financial Crimes Enforcement Network (FinCEN). Bob will be succeeding Bill Fox, who resigned a few weeks ago to accept a position with the Bank of...

Question to the Media - Part II

By Dennis Lormel

With all due respect to Doug Farah's post, I don't believe in force, suppression or tyranny. Despite the eloquence of the editorial highlighted in the post, it is quite dated. Not only do we have a whole new world since...

U.S. Law Enforcement and Intelligence Agencies Deserve Our Gratitude and Respect

By Dennis Lormel

During the State of the Union address last week, when leading up to urging Congress to reauthorize the U.S. PATRIOT Act, President Bush cited the �superb professionals� in law enforcement and intelligence agencies, as well as the military. He commented...

A Question for the Media

By Dennis Lormel

Last Thursday, February 2, 2006, Director of National Intelligence, John Negroponte, and the heads of the primary U.S. Intelligence Agencies testified before the Senate Intelligence Committee. CIA Director, Porter Goss, called for an investigation into the leaks of classified intelligence...

Bill Fox to Leave FinCEN

By Dennis Lormel

Bill Fox, Director, FinCEN, announced his resignation today. Bill has accepted a position with Bank of America. I had the privelege of working closely with Bill when I was the Chief of the Terrorist Financing Operations Section at the FBI....

The Media, the NSA and the PATRIOT Act

By Dennis Lormel

A former FBI collegue of mine, Clint Van Zandt, wrote the commentary set forth below. It offers a thoughtful, well articulated perspective about the PATRIOT Act and issues concerning our civil liberties and national security. The media, the NSA and...

The Senate?The USA PATRIOT Act?Terrorists

By Dennis Lormel

Has the Senate succeeded? Are they on the verge of handing terrorism a victory? That may well be the case, should the Senate allow provisions of the PATRIOT Act to expire on December 31, 2005, as it appears they will....

The Bottom Line?The USA PATRIOT Act Saves Lives

By Dennis Lormel

As a former senior executive of the FBI, responsible for terrorist financing, the investigative initiatives I oversaw were direct beneficiaries of the USA PATRIOT Act. Make no mistake about it; the PATRIOT Act facilitates investigative success. The ultimate beneficiaries of...

Impediments to Counterterrorism Efforts in the United States

By Dennis Lormel

Why was the PATRIOT Act enacted? Why does the CIA operate secret detention and intelligence facilities? Why has the number of National Security Letters issued by the FBI increased significantly? The answer is simple�to preserve national security and prevent another...

The Challenge and Divisiveness of Information Sharing in Today?s Environment

By Dennis Lormel

Information sharing is critical to terrorism prevention. This fact has created a serious dilemma for many police departments. It has also caused fractious relationships between federal and local authorities. Since its inception, the Department of Homeland Security has been responsible...

Post-Katrina Environment Opens Window for Relaxation of Bank Secrecy Act Burdens

By Dennis Lormel

Last week Andy Cochran posted about the post-Katrina balancing act between providing regulatory relief to Katrina-affected banks and customers and the Bank Secrecy Act reporting requirements (as toughened by the USA PATRIOT Act). Now the balance is tilted towards the...

Hurricane Katrina ? Assistance, Overcoming Consequence Chaos and the Importance of Contingency Planning

By Dennis Lormel

As a follow up to Andy�s post, I�d like to suggest that in addition to monetary contributions, those of us who are, or were, affiliated with businesses or government agencies in the stricken region contact those entities to offer assistance...

I thought diamonds were supposed to be clear? Then why are they so gray?

By Dennis Lormel

There is one thing that Doug and I are clear about concerning this subject. We will continue to agree to disagree on the issue of Al Qaeda�s involvement in the diamond trade. There are a number of factors that contribute...

Diamonds...Counterpoint....II

By Dennis Lormel

With respect to Doug�s last post, I again question the context. I have not seen the Belgian Police Report that is referred to. The case that is referred to was not a terrorism case. Ossailly and Nassour were prosecuted on...

Conflict Diamonds....Counterpoint

By Dennis Lormel

In response to Doug�s rebuttal I�d like to reiterate my closing comment in my last posting. Based on a number of dynamics, including cultural considerations, this is a gray area. There is a considerable amount of �he said, he said�...

Conflict Diamonds....Round 3

By Dennis Lormel

In response to Doug Farah�s posting earlier today, I concur with his argument about the Al Qaeda presence in West Africa and the significance of the potential future threat. It is a very alarming situation. The potential volatility of the...

John Byrne Leaves the American Bankers Association

By Dennis Lormel

In a press release dated August 25, 2005, Bank of America announced the appointment of John Byrne to the position of Anti-Money Laundering Strategy Executive in the bank�s Compliance Risk Management Division. Prior to accepting this position, John served with...

Training - An Important Tool for Disrupting Terrorist Financing

By Dennis Lormel

In the United States, there are three distinct areas where training offers the potential to facilitate the disruption of terrorist financing. These areas include training in the government sector, providing training to other governments developing Anti-Money Laundering (AML) and terrorist...

Conflict Diamonds.....Again

By Dennis Lormel

Once again, I strongly disagree with the assertions made by my friend, Doug Farah, concerning Al Qaeda�s involvement in Conflict Diamonds. In his Counterterrorism Blog posting of August 15, 2005, entitled �Able Danger and the 9-11 Commission� Doug raises issues...

THE AMERICAN CIVIL LIBERTIES UNION AND AL QAEDA

By Dennis Lormel

Ask yourself, could actions taken by the American Civil Liberties Union (ACLU) facilitate a future Al Qaeda attack in the United States?...

The Importance of Terrorist Financing Investigations

By Dennis Lormel

In the aftermath of the second series of bombings in London on July 21, 2005, and the prospect and concern of additional attacks, it is important that comprehensive financial investigative strategies be developed and implemented in order to identify and...

Conflict Diamond Debate Not Quite Over

By Dennis Lormel

In response to Doug Farah's earlier post about the debate concerning conflict diamonds, I disagree with his assertion that the debate is over. I have not had the opportunity to view the NBC Dateline story that Doug refers to. When...

Tools to Facilitate Time Sensitive, Time Urgent Terrorist Financing Investigations

By Dennis Lormel

One of the lessons learned from 9/11, which has manifested itself in the aftermath of the London bombings is the critical importance of conducting time sensitive, time urgent investigations in terrorism matters. To their credit, investigators in London have done...

Creation of a National Security Section within the FBI

By Dennis Lormel

This week, a series of announcements were made by President Bush, his Homeland Security Advisor (HSA) Fran Townsend, FBI Director Robert Mueller and Attorney General (AG) Alberto Gonzalez describing the establishment of the National Security Service within the FBI. The...

The Burden v. The Benefit of Bank Secrecy Act Regulations

By Dennis Lormel

There has been an ongoing debate concerning the burden versus the benefit of Bank Secrecy Act reporting requirements. There are a number of factors which have driven this debate and that have caused serious concerns and confusion throughout the financial...