The fight against terrorist financing

Political Science Quarterly

Volumn 121, Issue 4, 2006, Pages 569-596

  Clunan, Anne L ^a  

^a NAVAL POSTGRADUATE SCHOOL   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 33846673597     PISSN: 00323195     EISSN: None     Source Type: Journal    
DOI: 10.1002/j.1538-165X.2006.tb00582.x     Document Type: Review

References (131)

1. Personal communication from Daniel Benjamin, former National Security Council Director for Transnational Threats during the Clinton administration, 27 September 2004. See also Thomas Kean et al., "Final Report on 9/11 Commission Recommendations," 9/11 Public Discourse Project, 5 December 2005, accessed at http://www.9-11pdp.org/press/2005-12-05_report.pdf, 16 April 2006 (hereafter 9/11 Public Discourse Project Final Report).
2. Author's interview with senior official in the Office of Foreign Assets Control (OFAC), Department of the Treasury, Washington DC, 14 October 2004 (hereafter OFAC).
3. John Roth, Douglas Greenburg, and Serena Wille, Monograph on Terrorist Financing, Staff Report to the National Commission on Terrorist Attacks Upon the United States (hereafter 9/11 Staff Monograph), 11.
4. U.S. Department of State Bureau for International Narcotics and Law Enforcement Affairs, International Narcotics Control Strategy Report, Part II Money Laundering and Financial Crimes (March 2004, hereafter INCSR 2004 and March 2005, hereafter INCSR 2005).
5. Author's interviews in Washington DC with: State Department officials in the Office of the Coordinator for Counterterrorism's Counterterrorism Finance Unit (hereafter S/CT) and Bureau of International Organizational Affairs (hereafter IO), 20 and 23 September 2004, respectively; the Bureau of Economic and Business Affairs (hereafter EB) and International Narcotics and Law Enforcement (hereafter INL), 13 October 2004; Joseph M. Myers, former Director of Counter-Terrorist Financing at the National Security Council under the Bush administration, 12 October 2004; Treasury Department Financial Crimes Enforcement Network (hereafter FinCEN) official, 12 October 2004; and OFAC official.
6. Ernst Haas, When Knowledge Is Power (Berkeley: University of California Press, 1990).
7. Author's interviews with S/CT, INL, and OFAC officials, 20 September and 12-13 October 2004.
8. Robert D. Putnam, "Diplomacy and Domestic Politics: The Logic of Two-Level Games," International Organization 42 (Summer 1988): 427-460.
9. Beth A. Simmons, "International Law and State Behavior: Commitment and Compliance in International Monetary Affairs," The American Political Science Review 94 (December 2000): 819-835.
10. Ernst B. Haas, "Words Can Hurt You: Or Who Said What to Whom About International Regimes," International Organization 36 (Spring 1982): 207-244.
11. Mancur Olson, The Logic of Collective Action (Cambridge, MA: Harvard University Press, 1967/1971);
12. and Russell Hardin, Collective Action (Baltimore, MD: Johns Hopkins University Press for Resources for the Future, 1982).
13. Robert Keohane, After Hegemony: Cooperation and Discord in the World Political Economy (Princeton, NJ: Princeton University Press, 1984);
14. and Charles Kindleberger, The World in Depression, 1929-1939 (Berkeley: University of California Press, 1973).
15. For the full list of anti-terrorism conventions, see United Nations Treaty Collection, "Conventions on Terrorism," 5 January 2006, accessed at http://untreaty.un.org/English/Terrorism.asp, 5 January 2006.
16. Chantal de Jonge Oudraat, "The United Nations and the Campaign against Terrorism," Disarmament Forum 1 (2004): 29-37.
17. Ibid., 316.
18. Oudraat, "United Nations," 31.
19. UN August 2004, 5.
20. Author's interview with INL official; and Bantekas, "International Law," 328.
21. INCSR 2004, 49-50, and "NCCT Initiative," Financial Action Task Force, 16 July 2005, accessed at http://www1.oecd.org/fatf/NCCT_en. htm, 16 July 2005.
22. INCSR 2004, 52-57.
23. The Egmont Group, "Financial Intelligence Units of the World," 13 June 2001, accessed at http://www.fatf-gafi.org/pdf/EGFIUlist2001_en.pdf, 5 January 2006; and "Financial Intelligence Units of the World," 29 June 2005, accessed at http://www.fincen.gov/int_egmont.html, 5 September 2006 (hereafter Egmont FIU List 2001 and Egmont FIU List 2005).
24. Author's interviews with S/CT official and FinCEN official.
25. INCSR 2004, 48; and author's interview with INL official.
26. Bantekas, "International Law," 326.
27. UN Office on Drugs and Crime, "Terrorism," accessed at http://www.unodc.org/unodc/en/terrorism.html, 16 July 2005.
28. Author's interview with IO official; and Oudraat, "United Nations," 33.
29. The indicator of assets frozen is problematic, because U.S. government reports are unsystematic. The Government Accountability Office harshly criticized the State Department and especially the Treasury Department for this. See "Terrorist Financing: Better Strategic Planning Needed to Coordinate U.S. Efforts to Deliver Counter-Terrorism Financing Training and Technical Assistance Abroad," United States Government Accountability Office Report to Congressional Requesters, October 2005 (hereafter GAO 2005).
30. "Nuclear Threat Initiative, International Convention for the Suppression of the Financing of Terrorism," accessed at http://www.nti.org/e_research/official_docs/inventory/pdfs/finterr. pdf#search=%22convention%20terrorism%20financing%20nti%22, 4 October 2006; and "International Convention for the Suppression of Terrorist Bombing," accessed at http://www.nti.org/e_research/official_docs/inventory/pdfs/bomb. pdf#search=%22convention%20terrorist%20bombing%20nti%22, 4 October 2006." See Table 2, United Nations, "Report of the Secretary General to the Commission on Crime Prevention and Criminal Justice, UN Economic and Social Council," (17 March 2004) UN doc. E/CN.15/2004/8, 14 (hereafter UN March 2004).
31. 9/11 Staff Monograph, 45;
32. and INCSR 2004, Introduction.
33. UN March 2004, 12;
34. and 9/11 Staff Monograph, 45.
35. Egmont FIU List 2001;
36. and Egmont FIU List 2005.
37. "Twelve-Month Pilot Project of Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Assessments," IMF and the World Bank Joint Report on the Review of the Pilot Project, 10 March 2004 (hereafter IMF-World Bank Joint Report).
38. Author's interviews with State Department officials.
39. See Table 1 in UN March 2004, 7.
40. Author's interview with S/CT official.
41. Author's interview with FinCEN official.
42. Author's interview with OFAC official; and INCSR 2005, Introduction.
43. "NCCT Current List," Financial Action Task Force, 17 February 2006, accessed at http://www.fatf-gafi.org/document/4/0,2340, en_32250379_32236992_33916420_1_1_1_1,00.html, 16 April 2006.
44. Author's interviews with State Department officials.
45. IMF-World Bank Joint Report, 48.
46. Author's interviews with S/CT and EB officials.
47. Author's interviews with FinCEN, S/CT, and IO officials.
48. Author's interview with EB official; INCSR 2004;
49. United States Department of State, Patterns of Global Terrorism 2003, March 2004, accessed at http://www.state.gov/documents/organization/ 31912.pdf, 4 October 2006;
50. Francis T. Miko and Christian Froehlich, "Germany's Role in Fighting Terrorism: Implications for U.S. Policy," CRS Report for Congress, 27 December 2004; and HM Treasury, "Combating the Financing of Terrorism: A Report on UK Action, 24 October 2002," accessed at http://www.hm-treasury. gov.uk/documents/international_issues/terrorist_financing/ int_terrorfinance_combatfinance.cfm, 16 July 2005.
51. "The Fight against Terrorist Financing," Note of the Secretary General/High Representative and the Commission to the Council of the European Union (EU Doc. 16089/04), 14 December 2004, accessed at http://ue.eu.int/uedocs/ cmsUpload/EUplan16090.pdf, 4 October 2006; see also "EU Plan of Action on Combating Terrorism - Update," First Review by the Presidency of the European Council, (EU Doc. 16090/04), 14 December 2004, accessed at http://ue.eu.int/uedocs/cmsUpload/16089fight_against_terrorist_financing.pdf, 4 October 2006.
52. Author's interviews with all State Department officials.
53. The 9/11 Commission Report. Final Report of the National Commission on Terrorist Attacks Upon the United States, authorized ed. (New York: W.W. Norton & Company, 2004), 98-100, 122-123, 185.
54. Ibid., 100-102.
55. 9/11 Staff Monograph, 4-5;
56. and author's interviews with OFAC, FinCEN, and INL officials.
57. 9/11 Commission Report, 101;
58. and Congressional Research Service, "Terrorist Financing: Current Efforts and Policy Issues for Congress," CRS Report for Congress, 20 August 2004, 9-10 (hereafter CRS August 2004),
59. and "Terrorist Financing: U.S. Agency Efforts and Inter-Agency Coordination," CRS Report for Congress, 3 August 2005, 14 (hereafter CRS August 2005).
60. Author's interview with James B. Steinberg, Deputy National Security Advisor to the Clinton administration, Washington DC, 14 October 2004.
61. 9/11 Commission Report, 170-171;
62. and 9/11 Staff Monograph, 34-35.
63. 9/11 Commission Report, 109.
64. 9/11 Staff Monograph, 40-41.
65. 9/11 Commission Report, 122.
66. E.O. 13099, 20 August 1999, cited in Ibid., 126.
67. 9/11 Commission Staff Monograph, 4-6.
68. CRS August 2005, 11-12.
69. 9/11 Commission Report, 100-101.
70. Bantekas, "International Law," 328.
71. Mariano-Florentino Cuellar, "The Tenuous Relationship between the Fight against Money Laundering and the Disruption of Criminal Finance" (Stanford Public Law and Legal Theory Working Paper Series, research paper no. 64, September 2003): 337-338.
72. Ibid., 358. The Federal Reserve and Office of the Comptroller of the Currency had been requiring SARs since 1985.
73. 9/11 Staff Monograph, 38.
74. Cuellar, "Tenuous Relationship," 359-360.
75. 9/11 Staff Monograph, 38-39.
76. Cuellar, "Tenuous Relationship," 360-361.
77. 9/11 Staff Monograph, 37.
78. Ibid., 37-38.
79. Ibid., 4-6.
80. 9/11 Commission Report, 102-107.
81. Ibid., 107, 118-119.
82. Ibid., 100-102; author's interviews with Steinberg and Myers.
83. 9/11 Commission Report, 73.
84. Author's interview with Steinberg.
85. 9/11 Staff Monograph, 41-42.
86. This became the Terrorism Financing Unit under the Department of Justice Counterterrorism Section. Ibid, 42.
87. Ibid., 47.
88. Ibid.; author's interviews with Myers and INL and FinCEN officials.
89. "Terrorist Financing," report of an independent task force sponsored by the Council on Foreign Relations, November 2002, 23 (hereafter 2002 CFR Report), and "Update on the Global Campaign Against Terrorist Financing," report of an independent task force sponsored by the Council on Foreign Relations, 15 June 2004, 31 (hereafter 2004 CFR Report).
90. 9/11 Staff Monograph, 47;
91. and 2004 CFR Reports.
92. GAO 2005, 31.
93. Author's interviews with Myers and FinCEN, OFAC, INL, and EB officials.
94. CRS August 2004, 10-12; and letter from Joshua Bolten, Director of the Office of Management and Budget, to the President, 8 June 2005.
95. 9/11 Staff Monograph, 44;
96. and CRS August 2004, 27, 37.
97. Author's interviews with FinCEN, S/CT, EB, INL, and OFAC officials. This battle has subsequently become public. See GAO 2005, 14-15;
98. and Terrorist Financing: Agencies Can Improve Efforts to Deliver Counter-Terrorism-Financing Training and Technical Assistance Abroad, Committee on Financial Services, Subcommittee on Oversight Investigations, U.S. House of Representatives (testimony of David M. Walker, 6 April 2006), United States Government Accountability Office, GAO-06-632T, 1-30.
99. Author's interview with EB official.
100. David Welch, "The Organizational Process and Bureaucratic Politics Paradigms: Retrospect and Prospect," International Security (Fall 1992): 112-146.
101. 9/11 Commission Report, ch. 3;
102. and 9/11 Staff Monograph, 4-6.
103. Ibid.
104. 9/11 Staff Monograph, 79;
105. and author's interviews with Myers, and IO, and EB officials.
106. Author's interview with EB official.
107. Cuellar, "Tenuous Relationship," 361-362; and 2002 CFR Report, 13, 26.
108. 9/11 Staff Monograph, 99.
109. Author's interview with FinCEN official.
110. 9/11 Staff Monograph, 79.
111. Ibid., 80-81, 85-86 and Illinois charities case study.
112. Eric Lichtblau and James Risen, "Bank Data is Sifted by U.S. in Secret to Block Terror," The New York Times, 23 June 2006.
113. Author's interview with EB official.
114. Author's interview with FinCEN, OFAC, and INL officials.
115. 9/11 Staff Monograph, 37.
116. Ibid., 48-49.
117. Lichtblau and Risen, "Bank Data."
118. Author's interview with EB, INL, IO, and OFAC officials.
119. GAO 2005, 19;
120. and author's interview with Steinberg.
121. 9/11 Staff Monograph, 48-49.
122. Author's interviews with all State Department, OFAC, and FinCEN officials; quotations are from FinCEN official.
123. Author's interviews with EB, INL, IO, and FinCEN officials.
124. See 2002 and 2004 CRF Reports and 9/11 Public Discourse Project Final Report.
125. Author's interviews with all those interviewed. See also GAO 2005, 19-20; and Walker, Terrorist Financing, 1-30.
126. Author's interview with INL official.
127. 9/11 Staff Monograph, 46-47.
128. Author's interviews with S/CT official;
129. GAO 2005, 12;
130. and INCSR 2005, Introduction.
131. Author's interviews with all State Department officials.