FROM THE OFFICE OF PUBLIC AFFAIRS

February 15, 2005
JS-2252

Treasury Takes Action to Stem Funding
to the Iraqi Insurgency

The U.S. Department of the Treasury again took action today against an individual whose efforts were helping to finance the Iraqi insurgency, as well as al Qaida. 

"Today's designation of al-Fadhli is another important step in breaking the financial ties the al-Zarqawi Network depends on to perpetrate acts of horror and violence against people of all faiths and nationalities," said Treasury Secretary John W. Snow.

Muhsin al-Fadhli was designated under Executive Order 13224 for providing financial and material support to the al-Zarqawi Network and al Qaida.  The U.S. is submitting al-Fadhli to the United Nations 1267 Committee, which will consider adding him to the consolidated list of terrorists tied to al Qaida, Usama bin Laden and the Taliban. 

Today's action follows on the heels of last month's designation by the Treasury of Sulayman Khalid Darwish.  Among other activities, Darwish recruited, trained and dispatched terrorist operatives to help carry out the agendas of both the al-Zarqawi Network and al Qaida.

Muhsin al-Fadhli is considered an al Qaida leader in the Gulf countries.  Information available to the U.S. Government indicates that al-Fadhli fought alongside the Taliban and al Qaida in Afghanistan where he served as a bodyguard and second-in-command for an al Qaida leader.  He also fought against Russian forces in Chechnya, where he trained in the use of firearms, antiaircraft guns and explosives.  Information available to the U.S. Government shows that in early September, 2001, al-Fadhli possibly received forewarning that U.S. interests would be struck.

Muhsin al-Fadhli's support for terrorism extends to Iraq where he is believed to be providing support to fighters against U.S. and multinational forces and is considered a major facilitator connected to the brutal terrorist, Abu Musab al-Zarqawi.  In an effort to solidify the support of key financial backers sponsoring attacks, al-Fadhli requested that tapes be made showing evidence of successful attacks in Iraq. 

Furthermore, Muhsin al-Fadhli was also involved in several attacks in October, 2002.  First, he raised money in Kuwait which was used to finance an attack on the French ship MV LIMBURG on October 6, 2002 which killed one, injured four crew members and released 50,000 barrels of crude oil along 45 miles of coastline.  Muhammad al-Hamati [AKA Abu `Asim al-Makki], an al- Qaida operative and a Specially Designated Global Terrorist, had called al-Fadhli in the wake of the attack on the MV LIMBURG, informing him that the first operation on the French oil tanker had been completed. 

Al-Fadhli was also suspected of having a connection to an attack against U.S. Marines on the Kuwaiti Faylaka Island on October 8, 2002 during which one U.S. Marine was killed.

In February, 2003, a Kuwaiti court convicted four suspects, including al-Fadhli, of providing funding for terrorist activities and undergoing military training in Afghanistan for purposes of terrorism.  The Kuwaiti court handed down five-year jail sentences to the suspects who had been arrested on October 30, 2002 and November 16, 2002 on suspicion of involvement in planning or supporting plans to conduct terrorist operations in the wake of the October, 2002 attacks on the French ship, MV LIMBURG, and against U.S. Marines on Faylaka Island.

Zarqawi was named a Specially Designated Global Terrorist on September 23, 2003. The Zarqawi Network, also know as Jama'at al Tawhid wal Jihad and Tanzim Qa'idat al-Jihad fi Bilad al-Rafidayn, was designated as a Foreign Terrorist Organization and a Specially Designated Global Terrorist on October 15, 2004.