anti-terrorism financing

Anti-Terrorism Financing Overview

in
Date: 
January 16, 2012

 Resources 

Interpal

Headlines

Blog

Reports 

UPDATED: Treasury Data Shows Charities Not Significant Source of Terrorist Support

in
Date: 
January 8, 2010

There is debate over how much of a threat charities (and U.S. charities in particular) pose to national security. In public statements and meetings with the Treasury Guidelines Working Group, Treasury has made broad statements charging the charitable sector with being a significant source of terrorist financing and support. But evidence to support these claims has not been forthcoming. As a result, there has been significant disagreement between Treasury and the nonprofit sector on the extent and nature of the relationship between charities and terrorists. The issue is highlighted by the fact that Treasury's Annex to the Guidelines only cites examples of foreign charities.

Sen. Franken Supports Restoration of Money Transfers To Somalia

in
Date: 
February 1, 2012

A small number of Minneapolis-area Somali money transfer shops have reopened amid heightened scrutiny from banks, reports the Minnesota Star Tribune on Jan. 25, 2012. Though the amount transferable is limited to $500, the services are the only means many Somali-Americans have available to send remittances to family living in Somalia, a country lacking a functioning government or banking system, and plagued by drought and civil strife for almost 20 years. The inability of nearly 70,000 Somalis that live in the state to send money home had drawn strong criticism from Sen. Al Franken (D-MN) and other Minnesota legislators. At the end of December, the state's 14 Somali money transfer shops were shut down after the last Minnesota bank to wire money to Somalia closed their accounts.

Selective Enforcement: Charities Targeted for Harsher Sanctions

in
Date: 
June 29, 2009

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has designated nine U.S. charities as supporters of terrorism, seizing all property, blocking all funds and effectively closing all programs. In contrast, the for-profit corporations Halliburton and Chiquita Brands International have only had to pay fines for very similar alleged violations, and their operations have not been interrupted or shut down. There has been no explanation from OFAC.

Court Upholds Islamic American Relief Agency Asset Freeze

in
Date: 
February 27, 2007

On Feb.13, the U.S. Court of Appeals for the District of Columbia upheld a lower court decision that allowed the Treasury Department's Office of Foreign Assets Control (OFAC) to freeze the assets of the Missouri-based Islamic American Relief Agency. The court said the asset seizure was lawful because the court found the organization is an affiliate of a Sudanese group that was designated as a terrorist organization in 2004, making this the first case to allow such designation based solely on an alleged branch relationship. There was no finding that the U.S. group used funds to support terrorist activities, and no criminal charges have been filed.

Another Treasury Myth about U.S. Charities Busted

in
Date: 
October 18, 2011

U.S. charities are not alone in sending money overseas with little or no economic return back to the U.S.  In fact, unlike some of these areas (e.g. online gambling and remittances) that have little or no record of where the money goes, U.S. charitable groups and foundations must comply with Internal Revenue Service and state and local reporting requirements. Read more…

Wrong Way: Another Treasury Myth about U.S. Charities Busted

in
Date: 
October 17, 2011
 
The Department of Treasury has continuously mischaracterized international U.S. charities as a national security threat since 2001. In his 2010 testimony before Congress, Daniel L. Glaser, the Deputy Assistant Secretary of Terrorist Financing and Financial Crimes at Treasury said that charities were “an attractive target for terrorist organizations” because “[u]nlike for-profit organizations, charitable funds are meant to move in one direction only. Accordingly, large purported charitable transfers can move without a corresponding return of value.”

ACLU and CCR Challenge Constitutionality of OFAC’s Licensing Scheme for Legal Services

in
Date: 
August 16, 2010

On Aug. 3, 2010, the American Civil Liberties Union (ACLU) and the Center for Constitutional Rights (CCR) filed a lawsuit challenging the regulatory scheme requiring attorneys to obtain permission from the Office of Asset Control (OFAC) to represent their clients. The plaintiffs seek to represent pro bono the father of a US citizen targeted for killing by the U.S. government. 

The Impact of Counterterrorism Measures on Charities and Donors After 9/11

in
Date: 
August 16, 2010

There is increasing evidence of the negative impact on all charities of the counter-terrorism measures introduced since 2001.[i]  Here are examples from around the world:

Report: Muslim Charities and the War on Terror 2006

in
Date: 
May 11, 2009

March 2006 report: Since the 9/11 terrorist attacks, U.S.-based charities have become targets in the government's war on terror financing. Despite the implications for all domestic nonprofit organizations, the lion's share of the burden of increased scrutiny, suspicion, and pre-emptive action has fallen on Muslim groups. This report lists issues that the charitable sector and the public must address in order to correct an unfair process and make the war on terror most effective.