Laundering Terrorist Money

Added October 3, 2001 by WGN-TV Show Notes

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Summary: The international coalition President Bush is building to fight terrorism isn't just about physical attacks. it's also about getting other countries to shut down Osama Bin Laden's access to his case. Here's where the world is today in the drive to cut off the flow of terrorist funds.

ANCHOR: ONE OF THE WAYS PRESIDENT BUSH AIMS TO STOP TERRORISM IS TO STOP THE MONEY THAT FINANCES TERRORIST ATTACKS.

ANCHOR: BUT TRACING THE FLOW OF TERRORIST FUNDS MAY BE ALMOST IMPOSSIBLE. MONEY AND REAL ESTATE EXPERT ILYCE GLINK HAS THE DETAILS.

WELCOME.

ILYCE: THE DEVASTATING TERRORIST ATTACKS ON THE WORLD TRADE CENTER WERE DESIGNED TO DAMAGE OR PERHAPS EVEN DESTROY THE FINANCIAL CAPITAL OF THE WORLD. BUT EVEN AS THE BUILDINGS FELL, THE TRAIL OF FUNDS USED TO FINANCE THE EVENTS OF SEPTEMBER 11TH WAS ALREADY GROWING COLD. THE INTERNATIONAL COALITION PRESIDENT BUSH IS BUILDING TO FIGHT TERRORISM ISN'T JUST ABOUT PHYSICAL ATTACKS. IT'S ALSO ABOUT GETTING OTHER COUNTRIES TO SHUT DOWN OSAMA BIN LADEN'S ACCESS TO HIS CASH. HERE'S WHERE THE WORLD IS TODAY IN THE DRIVE TO CUT OFF THE FLOW OF TERRORIST FUNDS.

ACCOUNTS FROZEN

UNITED STATES: 27 ACCOUNTS FROZEN, $6 MILLION EUROPEAN UNION: $90 MILLION FROZEN AUSTRALIA: ACCOUNTS OF 27 ORGANIZATIONS FROZEN PAKISTAN: ACCOUNTS OF MILITANT GROUPS LINKED TO BIN LADEN

ILYCE: (AD LIB OVER GRAPHIC) PART OF THE PROBLEM IS THAT COUNTRIES LIKE THE PHILIPPINES, RUSSIA, AND INDONESIA DON'T HAVE TOUGH MONEY LAUNDERING LAWS IN PLACE. NOR DO THEY HAVE THE MANPOWER NECESSARY TO CATCH THE CRIMINALS.

"THERE IS NO INDICATION THAT BIN LADEN AND HIS ORGANIZATION HAVE ANY FUNDS IN THIS COUNTRY"

-- KASPAR VILLIGIER, SWISS FINANCE MINISTER

ILYCE: BUT EVEN IN SWITZERLAND, WHICH HAS BOTH, THE FINANCE MINISTER SAYS HIS COUNTRY HAS "NO INDICATION THAT BIN LADEN AND HIS ORGANIZATION HAVE ANY FUNDS IN THIS COUNTRY". MEANWHILE, ACCORDING TO REPORTS IN A PAKISTAN NEWSPAPER, BIN LADEN SAID HE HAD MORE THAN THREE DIFFERENT ALTERNATIVE FINANCIAL NETWORKS, SO THE US-LED ATTEMPTS TO FREEZE BANK ACCOUNTS WILL HAVE "NO EFFECT" ON FUTURE TERRORIST ATTACKS.

THAT MAY BE BECAUSE BIN LADEN USES AN ANCIENT SYSTEM OF MOVING MONEY CALLED HAWALA. HAWALA USES A NETWORK OF BROKERS ACROSS THE WORLD TO MOVE CASH OUTSIDE THE INTERNATIONAL BANKING SYSTEM. YOU HAND SOMEONE $1,000 ON A STREET CORNER IN PAKISTAN, AND SOMEONE HANDS YOUR RELATIVE $1,000 SOMEWHERE ELSE IN THE WORLD.

ANCHOR: HOW MUCH MONEY IS LAUNDERED IN THE WORLD EACH YEAR?

ILYCE: NO ONE REALLY KNOWS, BUT ESTIMATES RANGE FROM ONE TO ONE AND A HALF TRILLION DOLLARS PER YEAR.

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