Testimony
of Carl Whitehead, Special Agent In Charge, Tampa Division,
FBI
Before the House Committee on Government Reform Subcommittee
on Government Efficiency and Financial Management and Subcommittee
on Technology and Information Policy and the Census
December 15, 2003
"Information Technology Enhancing Interagency Cooperation"
Good
morning Mr. Chairmen and members of both the Subcommittee
on Government Efficiency and Financial Management and the
Subcommittee on Technology and Information Policy and the
Census. On behalf of the Federal Bureau of Investigation (FBI),
I would like to express my gratitude to both Subcommittees
for affording us the opportunity to participate in this forum
and to provide comments on the FBI's achievements, together
with our partners in the war on terror, in the effort to identify,
dismantle and disrupt sources of terrorist financing. I also
appreciate the opportunity to highlight the FBI's use of information
technology to better identify and isolate suspicious transactions
related to terrorist financing, as well as the continuing
enhancement of interagency cooperation in the battle against
terrorist financing.
Since
September 11, 2001, the FBI has reallocated substantial resources
to protect the American people from another terrorist attack.
The FBI's Counterterrorism Division has been reorganized to
provide a more centralized, comprehensive and proactive approach
to investigating terrorism-related matters to effectively
disrupt and dismantle terrorist organizations before they
are able to conduct attacks against citizens of the United
States. And, given the changing nature of terrorism and the
pace of technological innovations, the FBI has consistently
been called upon to devise and implement new methods and techniques
to identify, prosecute and, most importantly, prevent future
crimes and attacks.
The fight
against terrorist financing is a major front in our war on
terror. We recognize that terrorists, their networks and support
structures require funding in some form to exist and operate.
Whether the funding and financial support is minimal or substantial,
it leaves a financial trail that can be traced, tracked, and
exploited for proactive and reactive purposes. Being able
to identify and track financial transactions and links after
a terrorist act has occurred or a terrorist activity has been
identified is only a small part of the mission; the key lies
in exploiting financial information to identify previously
unknown terrorist cells, recognize potential terrorist activity
or planning, and predict and prevent potential terrorist acts.
To this end, the FBI has bolstered its ability to effectively
combat terrorism through the formation of the Terrorist Financing
Operations Section (TFOS).
TFOS
was created to combine the FBI's traditional expertise in
conducting complex criminal financial investigations with
advanced technologies and the powerful legislative tools provided
in the USA PATRIOT Act. TFOS has built upon these established
mechanisms by developing a strong support network within the
private financial sector, as well as furthering cooperation
and coordination among law enforcement and intelligence agencies,
both domestic and foreign, to form the preeminent terrorist
financing investigative operation. In the past several months,
TFOS has demonstrated its capabilities by conducting near
real-time financial tracking of a terrorist cell and providing
specific and identifiable information to a foreign intelligence
agency, which resulted in the prevention of six, potential
deadly terrorist attacks.
The TFOS
mission includes: conducting full financial analysis of terrorist
suspects and their financial support structures in the US
and abroad; coordinating joint participation, liaison, and
outreach efforts to exploit financial resources of private,
government, and foreign entities; utilizing FBI and Legal
Attaché expertise and relationships to fully develop
financial information from foreign law enforcement and private
agencies, including the deployment of TFOS personnel abroad;
working jointly with the intelligence community to fully exploit
intelligence information to further terrorist investigations;
working jointly with the law enforcement and regulatory communities;
developing predictive models and conducting data analysis
to facilitate the identification of previously unknown or
"sleeper" terrorist suspects; and providing the
financial component to classified counterterrorism investigations
in support of the FBI's counterterrorism responsibilities.
1.
Achievements towards the identification, dismantlement and
disruption of sources of terrorist financing:
Before addressing some specific, investigative accomplishments
in the fight against terrorist financing since 9/11/01, it
is important to mention our progress in broad areas. For instance,
international awareness and cooperation on the problem of
terrorist financing has reached unparalleled levels. Outreach
with, and cooperation from, the private sector has been outstanding
and continues to develop--particularly the level of two-way
interaction between law enforcement and the private sector.
The resulting ability to access and obtain information in
a timely fashion has significantly enhanced the FBI's ability
to identify, investigate, and resolve immediate threat situations
involving potential terrorist activity. Moreover, the ability
to conduct near real-time monitoring of specifically identified
financial activity has been invaluable not only to investigations
ongoing in the US, but to foreign law enforcement and intelligence
agencies in related investigations.
As an
example of our liaison and outreach efforts, extensive training
and support of international investigations by TFOS has resulted
in Agent visits, exchanges and training programs involving
countries in Europe, Southeast Asia, the Middle East and South
America. In support of specific high profile joint terrorist
financial investigative matters, a number of countries and
agencies, including the United Kingdom, Switzerland, Canada
and Europol, have detailed investigators to TFOS on a temporary
duty basis. TFOS has engaged in extensive coordination with
authorities of numerous foreign governments in terrorist financing
matters, leading to joint investigative efforts throughout
the world. These joint investigations have successfully targeted
the financing of several overseas al-Qa'ida cells. Furthermore,
with the assistance of relationships established with the
central banks of several strategic countries, successful disruptions
of al-Qa'ida financing have been accomplished in counties
such as the UAE, Pakistan, Afghanistan, and Indonesia.
As part
of its outreach effort, TFOS has developed a specific terrorist
financing and money laundering crimes curriculum for international
training that includes topics such as: acquiring and handling
evidence in document intensive financial investigations, major
case management techniques, forensic examination tools, and
methods of terrorist financing. At the request of the US Department
of State, TFOS has led an interagency team to provide this
curriculum to a number of countries (and is scheduled to provide
it to approximately 38 countries) identified as needing law
enforcement training on conducting terrorist financing investigations.
Needless
to say, access to foreign banking records is often critical
to effectively following the money. Through these training
and outreach initiatives, TFOS has been able to obtain direct
access to records provided by foreign central banks in numerous
countries. In return, TFOS has also been able to assist these
and other countries with the reciprocal sharing of financial
information.
TFOS
has cultivated and maintains a contact database of private
industry and government sources and persons who can provide
financial data, including near real-time monitoring of financial
transactions. Many of these contacts can be reached or accessed
on a 24 hour/7 days a week basis, allowing TFOS to respond
rapidly to critical incidents.
Through
these contacts and with appropriate legal process, TFOS has
access to data and information from a variety of entities
including: Banking Institutions, the Credit/Debit Card Sector,
Money Services Businesses, the Securities/Brokerages Sector,
Insurance Companies, Travel Agencies, Internet Service Providers,
the Telecommunications Industry, Law Enforcement, State/Federal
Regulatory Agencies, Public and Open Source Data Providers,
the Intelligence Community, and International Law Enforcement
and Intelligence Contacts. The timeliness and accessibility
of the data from these sources is contingent on a variety
of factors, including whether the acquisition of the information
requires legal process, the search capabilities of the data
provider, and the size and depth of the data request. Nevertheless,
as I've noted, the ability to access and obtain this type
of information in a time sensitive and urgent manner has significantly
enhanced the FBI's ability to identify, investigate and resolve
immediate threat situations involving potential terrorist
activity.
In addition
to these developments, the FBI, working in coordination with
other entities of the US government, has participated in the
following successes pertaining to terrorist financing:
- An
FBI Joint Terrorism Task Force in Charlotte, North Carolina,
utilized racketeering statutes to obtain criminal convictions
and, thus, disrupt and dismantle a Hizballah procurement
and fundraising cell. Twenty-six individuals were arrested
for crimes including immigration fraud, visa fraud, cigarette
smuggling, interstate transportation of stolen property,
fraud, bank fraud, bribery, money laundering, racketeering,
and providing material support to a terrorist organization.
- The
FBI coordinated with the Treasury Department's Office of
Foreign Asset Control (OFAC) to justify the blocking of
Holy Land Foundation for Relief and Development (HLF) assets
and the closing of its US offices, shutting down Hamas'
largest fund-raising entity in the US. The HLF had been
linked to the funding of Hamas terrorist activities, and
in 2000, raised $13 million.
- Offices
of the Benevolence International Foundation (BIF), a US
based charity, were shut down and its assets and records
blocked following an OFAC and FBI investigation which determined
the charity was being used to funnel money to al Qa'ida.
In February 2003, Enaam Arnaout, the head of BIF, pleaded
guilty to racketeering conspiracy, admitting he fraudulently
obtained charitable donations in order to provide financial
assistance to persons engaged in violent activities overseas.
- A
criminal case against Sami Al Arian, the alleged US leader
of the Palestinian Islamic Jihad (PIJ), and the World Islamic
Studies Enterprise forced the closure of several front companies
suspected of funneling money to support PIJ operations against
Israel. In August 2002, the investigation led to the deportation
of Mazen Al-Najjar, the brother-in-law of Sami Al Arian
and a known PIJ member. In February, following a 50-count
indictment for RICO and Material Support of Terrorism violations,
the FBI arrested Al-Arian and three other US-based members
of the Palestinian Islamic Jihad, including Sameeh Hammoudeh,
Hatim Naji Fariz, and Ghassan Ballout. The FBI also executed
seven search warrants associated with this action.
- TFOS
has provided operational support to FBI Field Divisions
across the United States to enhance their intelligence/criminal
investigations of individuals and groups associated with,
or providing material support to, terrorist organizations
and activities. This assistance is provided in the form
of conducting intelligence/criminal financial investigations,
financial analytical support, major case management, financial
link analysis, and the deployment of teams of experts to
develop investigative plans to analyze large volumes of
documents and data. TFOS has provided this type of operational
support in the Al Qa'ida sleeper cell cases in Buffalo and
Portland, as well as in the Richard Reid, John Walker Lindh,
Al Haramain, PIJ, and Mohamed Almoayad cases, among many
others. This type of operational support has also been provided
to Divisions investigating non-governmental organizations
(NGOs), such as the Holy Land Foundation for Relief and
Development, Benevolence International Foundation and the
Global Relief Foundation.
- The
FBI conducted a detailed financial investigation/analysis
of the19 hijackers and their support network, following
the September 11th attacks. This investigation initially
identified the Al Qa'ida funding sources of the 19 hijackers
in the UAE and Germany. The financial investigation also
provided the first links between Ramzi Binalshibh and the
9/11/01 terrorist attacks. A continuing investigation, in
coordination with the PENTTBOMB Team, has traced the origin
of the funding of September 11th back to financial accounts
in Pakistan, where high-ranking and well-known Al Qa'ida
operatives played a major role in moving the money forward,
eventually into the hands of the hijackers located in the
US. As part of the 9/11/01 financial investigation, thousands
of individuals and organizations were investigated in the
US and abroad to determine whether they played any part
in supporting the hijackers or the operation. Although the
vast majority of these individuals and organizations were
cleared, this process of elimination resulted in numerous
other quality terrorism investigations being initiated,
as well as criminal charges against hundreds of individuals
for fraud and other criminal activity.
- Since
9/11, the Treasury Department has frozen $36.3 million in
terrorist assets, while the international community has
frozen over $136 million, for a total of over $172 million.
- The
Treasury Department has issued blocking orders on the assets
of more than 340 terrorists, terrorist organizations, and
terrorist supporters, effectively denying them access to
the US
financial system.
- Federal
law enforcement officials have arrested over 61 individuals,
indicted 43 and convicted 12 in connection with terrorist
financing investigations.
- US
Government agencies, to include the FBI's TFOS, deployed
trainers and advisers on missions to countries around the
world to assist with the drafting of legislation to combat
terrorist financing, strengthen bank supervision in identifying
suspicious transactions, and address other financial crimes
and corruption. Since 9/11/01, over 80 countries have introduced
new terrorist-related legislation and approximately 84 countries
established Financial Investigation Units.
- As
previously noted, TFOS has conducted near real-time financial
tracking of a terrorist cell and provided specific and identifiable
information to a foreign intelligence agency, which resulted
in the prevention of six, potential deadly terrorist attacks.
- In
January 2003, the FBI, working in conjunction with German
law enforcement, arrested Mohammed Al Hasan Al?Moayad, a
Yemeni national, on charges of conspiring to provide material
support to Al Qa'ida and Hamas. Al?Moayad was a significant
financial contributor to Al Qa'ida and Hamas, and boasted
he had provided over $20 million dollars to Usama Bin Laden.
Al?Moayad participated in several fund?raising events at
the Al Farouq Mosque in Brooklyn, NY. Al?Moayad was arrested
during an undercover operation where he believed that he
was to receive a large financial contribution, which he
advised a source would be used to support mujahideen fighters
of Al Qa'ida and Hamas. Along with Al?Moayad, several of
his associates in New York were arrested for violating banking
reporting requirements by structuring over $300,000 in several
bank accounts in the United States.
- In
December 2002, a federal grand jury in Dallas returned an
indictment against a senior leader of Hamas, Mousa Abu Marzouk,
for conspiring to violate US laws that prohibit dealing
in terrorist funds. Also charged and arrested by the FBI
were Ghassan Elashi, the chairman of the Holy Land Foundation
for Relief and Development, a charitable organization designated
as a terrorist organization by the US Treasury Department's
Office of Foreign Asset Control because of its fundraising
activities on behalf of Hamas. Elashi and four of his brothers,
all of whom are employees of the Richardson, Texas-based
InfoCom Corporation, were charged with selling computers
and computer parts to Libya and Syria, both designated state
sponsors of terrorism. The indictment alleged that the Elashi
brothers disguised capital investment from Marzouk, a specially
designated terrorist for his admitted leadership role with
Hamas, for their telecommunications company, InfoCom. The
indictment and subsequent arrests have disrupted a US?based
business, which was conducting its activities with a known
Hamas leader and state sponsors of terrorism.
October
2002, the FBI and other US government agencies assisted German
authorities in identifying and taking legal action against
Hamas in Germany. Through the efforts of the FBI, including
TFOS, exchanges with Germany led to the closure of the Al?Aqsa
Foundation in Germany, a suspected Hamas fundraising organization.
2.
The use of information technology to better identify and isolate
suspicious transactions related to terrorist financing
The FBI has a responsibility to be not only reactive but proactive
as well, and to think strategically about potential threats
and future case development. Accordingly, TFOS, together with
the Counter-Terrorism Section, Criminal Division of the Department
of Justice, has begun a number of proactive initiatives to
identify potential terrorists and terrorist related financing
activities.
- The
overriding goal of these projects is to proactively identify
potential terrorists and terrorist related individuals,
entities, mechanisms or schemes through the digital exploitation
of data. To accomplish this, TFOS seeks to 1) identify potential
electronic data sources within domestic and foreign government
and private industry providers; 2) create pathways and protocols
to legally acquire and analyze the data; and 3) provide
both reactive and proactive operational, predictive and
educational support to investigators and prosecutors.
- Utilizing
the latest computer technology available to the Counterterrorism
Division, the Proactive Exploits Group (PEG) within TFOS
serves as a proactive, financial intelligence investigative
management and support team. PEG generates leads for TFOS
and other FBI components. PEG also proposes and conducts
proactive financial intelligence initiatives and projects.
PEG works closely with TFOS operational units and document
exploitation initiatives to ensure financial intelligence
is being fully exploited and disseminated.
- PEG
has conducted an extensive review of data mining software
and link analysis tools currently utilized by other governmental
and private industries for consideration of use by the FBI.
PEG also participates in the FBI's SCOPE Intelligence Data
Warehouse (IDW) User Management Group and has been involved
in the development and planning for future enhancements
to the IDW. PEG has created an interactive, computer playbook
generator that can assist investigators in determining data
sources to be queried, based upon the quantity and quality
of their investigative data.
- PEG
has initiated several projects to integrate data from TFOS'
internal financial database, open/public source data and
FBI and other government data sources onto a central query
platform. Through this process, and in concert with contract
vendors working for the SCOPE IDW Project, PEG has developed
a process whereby the Financial Intelligence Analysis Unit
(FIAU) within TFOS can batch query multiple databases for
potential matches by names, telephone numbers, e-mails,
etc. This batch process has the potential to save FIAU and
the FBI hundreds, if not thousands, of hours of data input
and query time on each occasion it is utilized. Furthermore,
it facilitates rapid acquisition and sharing of information
with other agencies. Through the sophisticated tools being
utilized, and the matching protocols developed, FIAU can
insure each query is properly conducted and done to a best
practices query standard.
- Recently,
PEG utilized the batch process it developed to exploit over
three thousand individual names, addresses, telephone numbers
and e-mail addresses. The batch process accomplished in
hours what would have taken TFOS personnel and FBI Field
Offices over 4,300 man hours to conduct, potentially saving
the FBI almost $70,000. Furthermore, because PEG conducted
the queries in batch form, and has global access to all
of the search results, previously unidentified links, patterns
and associates among the data can now be extracted. Absent
the batch process, this would have been extremely difficult,
if not impossible, to accomplish.
- PEG
has initiated a variety of proactive data mining projects
to identify potential terrorists and terrorist financing.
The projects were conceived in 2002 and now, with the advent
of certain software tools and data access, are either being
implemented or will shortly begin. Some of the projects
include the:
- Social
Security Number (SSN) Project
- The
SSN project is a multi-phase project that seeks to identify
potential terrorist related individuals through SSN misusage
analysis. SSNs identified as a result of terrorist related
investigations are first provided to the Social Security
Administration (SSA) for authentication. Once the validity
or non-validity of the number has been established, investigators
look for misuse of the SSNs by checking immigration records,
Department of Motor Vehicle (DMV) records, and other military,
government and fee-based data sources. Incidents of suspected
SSN misusage are then separated according to type. Predicated
investigative packages are then forwarded to the appropriate
investigative and prosecutive entity for follow-up.
- Suspicious
Activity Report (SAR) Project
- The
SAR Project seeks to identify potential terrorists through
the mining of the SAR database for key words, patterns,
individuals, entities, accounts and specific numeric identifiers
(i.e., Social Security; driver's license, passport, telephone
and Immigration and Naturalization Service (INS) A numbers,
etc. ) The SAR Project looks for terrorist related activity
among previously reported suspicious activity, regardless
of whether it was identified with terrorism at the time
of reporting. Incidents of suspected terrorist involvement
are separated and, thereafter, forwarded to the appropriate
investigative and prosecutive entity for follow-up. It is
not always immediately apparent whether the reported SAR
has a terrorism nexus. However, if the review is begun with
predicated terrorism names and identifiers associated with
terrorist investigations, the probability increases. PEG
has assisted several individual FBI field offices in initiating
their own versions of the SAR Project. Initial batch querying
of the SAR database recently began, and analyses of the
results are pending.
- Terrorist
Risk Assessment Model (TRAM)
- TRAM
seeks to identify potential terrorist and terrorism financing
activity through the use of targeted, predictive pattern
recognition algorithms. The project entails the compilation
of past and current known data regarding individual and
group terrorist activity, methodologies, demographics, financial
patterns, etc., to form a predictive pattern recognition
program. This risk assessment program could then be deployed
against financial and other data to identify those pieces
of information or persons that most closely resemble the
pattern being sought after. The PEG will shortly begin a
pilot testing of this capability to include the utilization
of artificial intelligence and robotic searching models
based on the patterns developed by TFOS.
- Automatic/Robotic
Playbook Generator
- PEG
has developed a computer database program that reviews Requests
For Information (RFIs), determines what is requested and
which FIAU contacts can provide potential answers to those
questions. The computerized program then returns a "playbook",
or set of instructions, the user can follow to gather the
necessary information. Plans are underway to integrate this
playbook generator with the batch process developed to automate
much of TFOS' collection mechanisms. This will allow RFI's
to be automatically processed, and the appropriate databases
queried robotically.
- It
is important to understand that these projects and similar
initiatives by TFOS seek only to more fully exploit information
already obtained by the FBI in the course of its investigations
or through the appropriate legal process, and where there
is an articulated law enforcement need. TFOS does not seek
access to personal or financial information outside these
constraints.
3.
2003 National Money Laundering Strategy (with an emphasis
on agency coordination)
- With
respect to the 2003 National Money Laundering Strategy,
I concur with the statements this morning of my colleagues
as they relate to the strategy's goals and objectives. The
blocking of terrorist assets worldwide, establishing and
promoting of international standards for adoption by other
countries to safeguard their financial infrastructures from
abuse and facilitating international information are several
key objectives which must be achieved if law enforcement
and regulatory agencies are to have any success in stemming
the flow of illegal funds throughout the world. Within the
FBI, the investigation of illicit money flows crosses all
investigative program lines. I would like to use my final
moments with the Committees to share some examples of the
Bureau's efforts towards coordination with other agencies
so important to us in the fight against terrorism, recognizing
that throughout my comments thus far this morning, our understanding
and recognition of the need for the continued sharing of
information, cooperation and outreach efforts are clearly
noted.
- Information
sharing is critical to all of our efforts. The intelligence
community, including the FBI, produces and obtains tremendous
amounts of classified intelligence information. While much
of the information can be of significant value in terrorist
finance investigations, the value will not be realized or
maximized absent the ability to filter the information,
analyze it, and disseminate it in an appropriate manner
to those who can make the best use of the information. Toward
this end, TFOS participates in joint endeavors with the
Treasury Department, the Department of Justice, and the
Department of Homeland Security involving potential terrorist
related financial transactions. TFOS also has personnel
detailed to the CIA's Counter Terrorism Center, and personnel
from there work directly with TFOS on financial intelligence
matters.
- In
addition, the National Security Council formalized the Policy
Coordinating Committee (PCC) on Terrorist Financing at the
end of 2001. Treasury chairs the PCC, which generally meets
at least once a month to coordinate the United States government's
campaign against terrorist financing. The meeting generally
focuses on ensuring that all relevant components of the
federal government are acting in a coordinated and effective
manner to combat terrorist financing.
- The
Departments of State, the Treasury, and Justice also established
an interagency Terrorist Financing Working Group, chaired
by the State Department, to coordinate government efforts
to identify, prioritize and assess those countries that
are vulnerable to terrorist exploitation. Groups of experts,
including DOJ money laundering prosecutors, interagency
law enforcement and regulatory members, have provided extensive
on-the-ground assessments of such countries' vulnerabilities
in an effort to develop and provide targeted training and
technical assistance to those countries identified as most
vulnerable.
- Organizational
changes have also taken place within the Executive Branch
with respect to the investigation of terrorism financing,
including the execution of a Memorandum of Agreement (MOA)
between the Department of Justice (DOJ) and the Department
of Homeland Security (DHS) concerning terrorist financing
investigations. The MOA addressed the importance of waging
a seamless, coordinated law enforcement campaign against
terrorist sources of financing. Signed by Attorney General
Ashcroft and Homeland Security Secretary Ridge on May 13,
2003, the FBI was designated to lead terrorist financing
investigations and operations, while DHS would focus its
law enforcement activities on protecting the integrity of
US financial systems. To this end, DHS implemented "Operation
Cornerstone", led by Immigration and Customs Enforcement
(ICE), to identify vulnerabilities in financial systems
through which criminals launder their illicit proceeds,
bring them to justice and work to eliminate financial infrastructure
vulnerabilities. Former US Customs Service "Operation
Green Quest" criminal cases having no nexus to terrorism
were converted to "Operation Cornerstone", while
those cases having a nexus to terrorism were transitioned
to the appropriate FBI Joint Terrorism Task Force (JTTF)
having ICE participation. Ongoing and future "Operation
Cornerstone" investigations that develop links to terrorism
will be referred to the FBI through TFOS. ICE and TFOS are
coordinating investigative initiatives that will enable
ICE to identify financial systemic vulnerabilities, and
which will enable TFOS to identify ties to terrorism and
terrorist financing. In addition, there is a liaison from
ICE assigned to TFOS, and investigators from ICE will be
represented on the JTTFs.
- Our
efforts to combat terrorism have been greatly aided by the
provisions of the PATRIOT Act and, pursuant to the 2003
National Money Laundering Strategy, the FBI is ensuring
its vigorous and appropriate application. The success in
preventing another catastrophic attack on the US homeland
would have been much more difficult, if not impossible,
without the Act. It has already proved extraordinarily beneficial
in the war on terrorism. Most importantly, the PATRIOT Act
has produced greater collection and sharing of information
within the law enforcement and intelligence communities.
- Title
III of the Act, also known as the International Money Laundering
Anti-Terrorist Financing Act of 2001, has armed us with
a number of new weapons in our efforts to identify and track
the financial structures supporting terrorist groups. Past
terrorist financing methods have included the use of informal
systems for transferring value in a manner that is difficult
to detect and trace. The effectiveness of such methods should
be significantly eroded by the Act, which establishes stricter
rules for correspondent bank accounts, requires securities
brokers and dealers to file Suspicious Activity Reports
or SARS, and money transmitting businesses, which include
any person who engages as a business in the transmission
of money, to register with FinCEN and file SARS.
- There
are other provisions of the Act that have considerably aided
our efforts to address the terrorist threat including: strengthening
the existing ban on providing material support to terrorists
and terrorist organizations; the authority to seize terrorist
assets; and the power to seize money subject to forfeiture
in a foreign bank account by authorizing the seizure of
a foreign bank's funds held in a US correspondent account.
- The
FBI has utilized the legislative tools provided in the USA
PATRIOT Act to further its terrorist financing investigations.
Some examples of how TFOS has used the provisions in the
USA PATRIOT Act are: to obtain foreign bank account information
by issuing administrative subpoenas on foreign banks' US
correspondent banks; to corroborate financial data obtained
through criminal investigative techniques with intelligence
sources; and to provide grand jury material to a foreign
intelligence agency. All of these techniques have significantly
assisted ongoing terrorism investigations and would not
have been possible, but for the enactment of the USA PATRIOT
Act.
- It
is important for the Committee and the American people to
know that the FBI is using the PATRIOT Act authorities in
a responsible manner. We are making every effort to effectively
balance our obligation to protect Americans from terrorism
with our obligation to protect their civil liberties.
- Terrorism
represents a global problem. The solution is grounded in
what would have been considered, prior to 9/11/01, unprecedented
international cooperation and coordination. The threat it
poses must always be considered imminent. In addition to
considerable financial investigative expertise, addressing
terrorism and the finances that support and propagate it
requires the ability to both implement proactive and preventive
approaches to disrupt and dismantle, as well as the ability
to conduct highly reactive immediate response financial
investigations to address potential imminent threats. As
stated herein, and in conjunction with more and more of
the international community and other aspects of the US
Government, the FBI has made considerable progress toward
achieving and implementing these abilities.
- Again,
I offer my gratitude and appreciation to you, Chairman Platts
and Chairman Putnam, as well as the distinguished members
of both Committees, for dedicating your time and effort
to this issue, and I would be happy to respond to any questions
you may have.
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