Tug of War Over Qaddafi’s Wealth

Did it really take all this time to discover the location of the wealth of Libya, hidden by Qaddafi? Well no, it has taken this long to understand who is part of the wrangling for control.

Muammar Gaddafi was able to build his massive personal wealth thanks to a violent and domineering control over Libya’s natural resources. Specifically their rich supply of oil. Libya has the largest supply of oil in Africa and the tenth largest in the world. Gaddafi used Libya’s oil to print money for 40 years! During that time he spread his money around the globe through family members, Swiss bank accounts, real estate and investments. Estimated at $200 billion, he had enough to give $30,000 to each of Libya’s 6.6 million citizens.

At the beginning of the Lybian conflict, authorities discovered and seized roughly $67 billion of Gaddafi’s wealth hidden in bank accounts around the globe. England, France, Italy and Germany seized another $30 billion and the Obama administration found a staggering $37 billion in the United States. Investigators suspect that Gaddafi hid an additional $30 billion around the world.

Muammar Gaddafi had made over $200 billion from Libya's rich oil supply

As more investigations take place, it looks like Gaddafi had money stashed or invested in almost every major country in the world including the United States, Europe, the Middle East and Asia. In addition to bank accounts, Muammar owned a stake in the Italian soccer club Juventus and the car company Fiat. He also was a minority of London’s Financial Times. Gaddafi had luxury homes around the world including the huge estate pictured below. Surprisingly this house is located in the United States. In Englewood, New Jersey of all places! His house includes a huge swimming pool, tennis court and even a shooting range…

Muammar Gaddafi had a home in Englewood, New Jersey, USA

Investigators from U. N. Security are still waiting on many countries to resolve what Gaddafi might have within their borders. Several neighboring African nations refused to freeze Gaddafi’s accounts because of their fear and loyalty to the ruthless leader. Now that he’s dead, we should see even more money come to light. On top of all this, it’s believed that Gaddafi had billions of dollars worth of gold hidden in Libya, which has yet to be discovered.

Did Mummar Gaddafi’s $200 billion make him the richest person of all time? To find out how he stacks up, click this article:

The 25 Richest People Who Ever Lived – Inflation Adjusted

Gaddafi had a secret fortune of over $200 billion hidden around the world

So, where is the wealth of the failed and rogue leader and country? Ah, SA. But it will likely be embargoed for a long while after all the forensic accounting and criminal activity is matched to a comprehensive investigation. Oh yes, one more thing, our own U.S. Treasury and Secretary of State John Kerry is actively engaged in the process. It is a sure bet many other global leaders and the United Nations will complicate resolutions as their names are also likely attached.

Johannesburg – The South African government and President Jacob Zuma have been caught in the middle of an international wrangle over as much as R2 trillion in US dollars as well as hundreds of tons of gold and at least six million carats of diamonds in assets belonging to the people of Libya.

What could be the world’s largest cash pile is stored in palettes at seven heavily guarded warehouses and bunkers in secret locations between Joburg and Pretoria.

The Libyan billions have led to a Hawks investigation into possible violation of exchange controls as well as international interests from the UN and the US.

It has also led to heightened interest in the local and international intelligence community as well as the criminal underworld.

Those interested in the Libyan loot include several high-ranking ANC politicians, several business leaders, a former high court judge and a number of private companies.

The R2-trillion held in warehouses is separate from several other billions, believed to be in excess of R260 billion, held legally in four banks in South Africa.

Other legal assets include hotels in Joburg and Cape Town.

The Sunday Independent has seen official South African government documents which confirm that at least $179bn in US dollars is kept, illegally, in storage facilities across Gauteng.

Soon after Muammar Gaddafi’s death in October 2011, the new Libyan government embarked on a large-scale mission to recover legal assets in South Africa, the rest of Africa, the US and Europe.

In South Africa, the focus of the Libyans has been on assets brought into the country legally as well as illegally.

Last year, the Libyan government put in place a separate process to identify and repatriate the illegal assets in South Africa.

Investigations by The Sunday Independent on the illegal assets have led to allegations that:

* The US dollar loot was ferried to South Africa in at least 62 flights between Tripoli and South Africa. The crew of the planes were mainly ex-special forces from the apartheid era. The crew are understood to have deposed affidavits clarifying their role in an effort to avoid criminal charges.

* The money, gold and diamonds were moved to South Africa. Most of it was kept here and some was moved to neighbouring southern African countries. Most of the assets were taken out of Libya after Zuma got involved in an AU process to persuade then Libyan President Gaddafi to step down after an Arab-spring-like uprising to force him out of office.

Gaddafi was killed as he tried to flee Tripoli.

The Libyan government has formed a special board, the National Board for the Following Up and Recovery of Libyan Looted and Disguised Funds, to recover the assets. Now two companies have presented themselves to the South African government, claiming they were mandated by the national board to recover the funds.

The two companies are the Texas-based Washington African Consulting Group (WACG), led by its chief executive Erik Goalied, and Maltese-based Sam Serj, led by its chief executive, Tahah Buishi. Both companies claim to be the only legitimate representatives of the Libyan government.

Goalied has dismissed Sam Serj as impostors who want to stage the “biggest heist in the world”.

He said they were using fake documents and had used a number of South Africans, with the lure of lucrative commissions, to get the South African government to comply. Goalied has formalised his allegations about Sam Serj in an affidavit that he has submitted to the National Prosecuting Authority, who have passed it on to the Hawks.

He told The Sunday Independent that on September 26 he met with the Libyan Prime Minister Abdullah al-Thani in New York, where both parties reconfirmed that the WACG should work with the South African government. “The assets are important but the bigger goal is to resolve this smoothly so that relations between South Africa and Libya can improve,” he said.

Goalied said the Libyans did not necessarily want the loot to be sent back to Tripoli. They wanted full and legal control of the assets which, he added, could be used for investments and other job-creation projects that would benefit both countries.

Last month, Goalied wrote to Zuma asking for co-operation and assistance in resolving the assets saga. The Presidency wrote to him this week, acknowledging his letter.

The Presidency has referred The Sunday Independent’s queries to the Treasury. The Treasury, in turn, referred The Sunday Independent to a statement issued last June in which the government called on those with knowledge of Libyan assets in South Africa to come forward. Hawks spokesman Paul Ramaloko declined to confirm the probe.

The Sunday Independent has also established that Goalied has also written to UN Secretary-General Ban Ki-moon and US Foreign Secretary John Kerry asking for assistance. The UN adopted Resolution 438 which forces countries that have Libyan assets to return them.

The second company – Sam Serj – has already been in South Africa to discuss the return of the assets.

Sam Serj chief executive Buishi claimed his company was the only legitimate entity with a mandate to find and recover assets that belong to the people of Libya.

Buishi said his company has been contracted by the Libyan government to trace and recover assets looted by Gaddafi and those close to him.

He said the assets had been traced to South Africa, Libya’s neighbour, Tunisia, and several countries in Europe.

“We have been contracted by the Libyan government and are working with the South African government to recover the looted assets.

“We had a good meeting during our last visit with the then-minister of finance, Pravin Gordhan.

“We are working with the South African government. Hopefully, there will be a delegation to South Africa to repatriate the assets or come to some sort of arrangement.

“We want to work with the South African government to not only recover the assets but to find ways of re-investing them in South Africa.

“We want the assets to be identified as belonging to the Libyan people.

“Politically, we are trying to help the new Libya integrate with the rest of the African continent. Libya is a very big and rich country and together with South Africa can play a strategic role in Africa,” Buishi said.

Several sources told The Sunday Independent that the Libyans have complained to the UN and have placed South Africa and Zuma on terms, threatening to lay charges of theft with the International Criminal Court if the assets were not returned promptly.

The Sunday Independent understands that the money was brought in by a company, which has hired former SADF special forces and is keeping the warehouses where the money, gold and diamonds are being kept under 24-hour surveillance.

Other cash assets, running into hundreds of millions of rand, are being kept in accounts in South Africa’s major banks.

Several sources have confirmed that the ex-apartheid era special forces pilots and soldiers have deposed affidavits that are designed to protect them from, among others, money-laundering charges.

 

UPDATE: No Access to 2,500 Documents IRS to WH

Update:  12/3/14 It seems that Treasury Secretary Jack Lew has intervened with the court’s decision forcing release of these documents. The White House is also working over-time to ensure the Judge’s ruling is impeded. This is more law-FARE.

Here is the link for more on this developing matter. Collusion and obstruction are being realized.

http://www.washingtonexaminer.com/feds-balk-at-releasing-docs-showing-irs-sharing-tax-returns-with-white-house/article/2556890#.VH9yMn7mYv0.twitter

 

It begins with a FOIA lawsuit, then comes a ruling, then comes the Inspector General. It should be noted that those guilty is actually per document, per count. Congressional hearings are scheduled.

September 30, 2014                                                Mary Beth Hutchins, 202-400-2721

Cause of Action Defeats Treasury IG Tax Office in FOIA Lawsuit

Court Rules that TIGTA Must Process FOIA Request Regarding Investigations Into

Tax Records Improperly Shared with the President

WASHINGTON –The U.S. District Court for the District of Columbia ruled Monday that the Treasury Inspector General for Tax Administration (TIGTA) must process an October 9, 2012 Cause of Action Freedom of Information Act (FOIA) request seeking documents about investigations into unauthorized disclosures of taxpayer information to the Executive Office of the President.

Cause of Action’s Executive Director Dan Epstein said:

The court has ruled that the federal government cannot hide behind confidentiality laws to prevent Americans from knowing if our President has gained unauthorized access to their tax information. This is a decisive win for all Americans and for government transparency and accountability. The public already knows the President uses FOIA to shield his targeting of the press and this ruling prevents the President from using FOIA to shield his targeting of taxpayers.

Revealed: 2,500 new documents in IRS / W.H. harassment cases

In a shocking revelation, the Treasury Inspector General has identified some 2,500 documents that “potentially” show taxpayer information held by the Internal Revenue Service being shared with President Obama’s White House.

The discovery was revealed to the group Cause of Action, which has sued for access to any of the documents. It charges that the IRS and White House have harassed taxpayers.

In an email from the Justice Department’s tax office, an official revealed the high number of documents, suggesting that the White House was hip deep in probes of taxpayers, likely including conservatives and Tea Party groups associated with the IRS scandal.

In requesting a delay in the delivery date of the documents, Justice told Cause of Action, “The agency [Treasury Inspector General for Tax Administration] has located 2,500 potentially responsive documents and anticipates being able to finish processing 2,000 of these pages by the December 1 date. It needs the additional two weeks to deal with the last 500 pages to determine if they are responsive and make any necessary withholdings.”

Cause of Action, which calls itself “Advocates for Government Accountability,” wasn’t surprised by the number of documents. It had filed suit to win access to them and a federal judge shot down Treasury’s earlier bid to hide the documents.

“This disclosure, coming only after Cause of Action sued TIGTA over its refusal to acknowledge whether such investigations took place, and after the court ordered TIGTA to reveal whether or not documents existed, signals that the White House may have made significant efforts to obtain taxpayers’ personal information,” it said in a statement to Secrets.

The disclosure follows the agency’s recovery of 30,000 “lost” emails from former IRS executive Lois Lerner, the central figure in the IRS-Tea Party scandal.

Cause of Action said the latest finding renews their “concerns about the decaying professionalism of, and apparent slip into partisanship by, IRS’s senior leadership.”

Below is the full email from Treasury:

My client wants to know if you would consent to a motion pushing back (in part) TIGTA’s response date by two weeks to December 15, 2014. The agency has located 2,500 potentially responsive documents and anticipates being able to finish processing 2,000 of these pages by the December 1 date. It needs the additional two weeks to deal with the last 500 pages to determine if they are responsive and make any necessary withholdings. We would therefore like to ask the court to permit the agency to issue a response (including production) on December 1 as to any documents it has completed processing by that date, and do the same as to the remaining documents by December 15. I note that the court’s remand was for a “determin[ation],” which the D.C. Circuit has recently explained can precede actual production by “days or a few weeks,” but we would prefer to simply agree on a date for turning over any of the remaining 500 documents that may be responsive.

18 page lawsuit is here in full text.

UN Just Got the Memo on Ansar al Sharia

The United Nations has something call Blue Sheets which are immediate notices of concern as they often reference threats. The UN also has their own list of terror cells, organizations and individual terrorists by name.

The State Department also authors a SETL, Security Environment Threat List and the United Nations is part of the distribution list. Libya has been included on more than one SETL. For reference, this is what action is required by virtue of a SETL.

While the United States was quite slow for unknown reasons to list Ansar al Sharia on the terror list until February of 2014, the United Nations did not add Ansar al Sharia until this month, November 2014. Why you ask? Ah, the short answer is diplomacy.

Alas, it appears that after years, Libya has been officially recognized by the United Nations, so now what is the solution? None on the horizon.

UN Security Council adds Libya Islamists to terror list

United Nations (United States) (AFP) – The UN Security Council on Wednesday added to its terror list a Libyan Islamist group accused of involvement in the 2012 attack on the US mission in Benghazi that killed the ambassador and three other Americans.

The council blacklisted Ansar al-Sharia for its ties to Al-Qaeda, slapping an arms embargo, assets freeze and global travel ban on the extremists at the request of Britain, France and the United States.

The measure targets Ansar al-Sharia Benghazi and its sister group Ansar al-Sharia Derna, which both have links to Al-Qaeda in the Islamic Maghreb (AQIM) and other violent radical outfits.

In October, Ansar al-Sharia Derna pledged allegiance to the Islamic State (IS), the Islamist group that has seized control of territory in Iraq and Syria.

French Ambassador Francois Delattre said the decision would provide a boost to efforts by UN special envoy Bernardino Leon to broker a deal between Libya’s many militias and the government.

“This is an important decision because it draws a clear line between, on the one hand, jihadists with whom there can be no dialogue, and on the other, those Libyan groups — Islamist and others — that must take part in talks launched by special envoy Bernardino Leon,” Delattre told AFP.

Since 2012, the Benghazi wing has operated several training camps mainly to help armed groups in Iraq and Syria and to a lesser extent in Mali, according to the request filed by the three countries.

Twelve of the 24 jihadists who attacked the Algerian In Amenas gas complex in 2013 trained in the camps of Ansar al-Sharia in Benghazi, Libya’s second city, documents said.

More recently, the group has conducted several attacks on Libyan security forces, it added.

Ansar al-Sharia Derna also took part in the September 2012 attack on the US mission and is operating camps in the northeastern Derna and Jebel Akhdar regions to train fighters for Iraq and Syria.

A third sister group, Ansar al-Sharia Tunisia, was added to the UN terror list in September.

French Foreign Minister Laurent Fabius told a meeting on the sidelines of the UN General Assembly in September that the group should face sanctions as part of efforts to prevent Libya from sliding further into violence.

The UN effort to broker a deal with various militias and the government on restoring order in Libya led to a 12-hour humanitarian ceasefire in Benghazi earlier on Wednesday.

Libyan authorities have struggled to assert control across a country awash with weapons and powerful militias after the ouster of longtime dictator Moamer Kadhafi in a 2011 revolt.

Libya’s internationally recognized government has been forced to take refuge in the country’s far east to escape a mainly Islamist coalition which seized control of Tripoli at the end of August.

***

Due in part to oil investments in Libya, the West takes extreme measures when it comes to Libya, while it is a failed state with no standing government.

So it takes experts to declare Libya is a rogue state? Just what experts exactly? Logical analysis is fleeting.

Islamic State has toehold in lawless Libya, experts say

TRIPOLI, Libya — With Libya engulfed in chaos, the town of Derna in the east of the largely lawless country is emerging as a new stronghold for the Islamic State jihadist group, experts say.

The North African state has been wracked by instability since the overthrow of autocratic leader Moamer Kadhafi in 2011, providing a fertile ground for Islamic extremists.

IS fighters have already swept across Iraq and Syria, and their leader Abu Bakr al-Baghdadi recently boasted of vows of allegiance from militants in Libya, Egypt, Algeria, Yemen and Saudi Arabia.

Some Western observers consider Derna, a town of 150,000, to be the home of a third IS franchise in North Africa, after Jund al-Khilifa in Algeria and Egypt’s Ansar Bayt al-Maqdis declared their support earlier this year.

“The Islamic State is in Derna. It’s well documented. There’s no doubt,” said Othman Ben Sassi, a former member of the now-disbanded Transitional National Council, the political arm of the rebellion that overthrew Kadhafi.

The jihadist group is exploiting “the absence of state authority and porous borders,” he added.

Statements and images have for several weeks circulated on extremist forums claiming to depict gatherings of “Libyan jihadists” belonging to IS — prompting concern in Washington.

“We have seen reports that violent extremists (in Libya) have pledged allegiance to IS and are looking to associate themselves with it,” said State Department spokesman Jeffrey Rathke.

Libyan authorities have struggled to control militant groups as well as powerful militias which ousted Kadhafi, and the internationally recognized government has been forced to take refuge in the far east of the oil-rich country.

‘Ideological fight’
Derna and large areas of Benghazi, Libya’s second city, have served as strongholds for radical groups including Ansar al-Sharia, which is classified by the UN as a terrorist organization.

In April, an offshoot of the group announced it had implemented Islamic sharia law in Derna.

The self-proclaimed “Shura Council of Islamic Youth” has reportedly opened Islamic courts and established a religious police force in the town.

Dozens of masked members have appeared in military fatigues, regularly parading in pick-up trucks brandishing rocket launchers and heavy machine guns and toting the black and white flag used by jihadists.

In August the Shura Council posted a video online appearing to show the public execution in a Derna football stadium of an Egyptian man accused of murder.

But the group has yet to formally pledge allegiance to IS, and analysts say there are divisions within its ranks.

“Several extremists in Derna are attracted to IS. But the majority of senior jihadists in Libya are former al-Qaeda members and there is an ideological fight between IS and al-Qaeda partisans,” said a Libyan expert on jihadists who did not want to be named.

The UN this month branded Ansar al-Sharia a terrorist organization owing to its affiliation with al-Qaeda’s North African franchise.

“The decision was based on reliable intelligence,” the Libyan expert said. “Ansar al-Sharia has closer ties to al-Qaeda than to any other group.”

‘Islamic emirate’
According to Claudia Gazzini, Libya analyst at International Crisis Group, some Derna factions have pledged allegiance to IS, but it is unclear which ones and how much support they enjoy.

“There is a misguided tendency to automatically associate the establishment of Islamic courts and the killings of soldiers with an IS agenda,” she said.

Derna was already considered by many analysts to be a de-facto “Islamic emirate”, entirely free from state control, before the reported claims of allegiance to IS.

The town has long been suspected of harboring and training foreign fighters who then go on to fight in Iraq and Syria, where IS has declared a “caliphate” and imposed its harsh interpretation of Islamic law.

“There are factions in Derna who reportedly swore allegiance to IS in the search for a group that could unify the Muslim community,” said a former Libyan official who also asked not to be named for security reasons.

“But ideological differences between jihadist groups and the international coalition offensive against IS means these factions have so far opted for discretion, or have gone to fight in Iraq and Syria,” the former official added.

According to one resident of Derna, life in the town goes on largely as normal — for most people.

“You go out, you do your chores, you visit friends. No one bothers you,” the resident said.

“But if you are a policeman, a soldier or a lawyer, you’re dead.

 

Money, People, Bribes, Politicians and Islamic State

The U.S. Treasury maintains a sophisticated global banking network that tracks money for laundering, destinations, use, recipients and interim banks. But why is the top person in charge of tracking dark money not using the tools when it comes to the increasing wealth of Islamic State? The answer is chilling.

Corruption Currents: Islamic State Receives Millions in Ransom Payments

Bribery:

Brazil’s bribery probe of Petrobras SA is threatening the firm’s debt financing. A suspect in the scandal turned himself in. (Bloomberg, AP)

The former chief executive of a Virginia defense contractor pleaded guilty to providing gratuities to a federal contracting official, and the company agreed to pay a $300,000 fine. (Washington Post)

Fewer Filipinos are giving bribes, according to a survey, but opposition politicians doubted the findings. (Philippine Star, Philippine Daily Inquirer, ABS-CBN News, Manila Standard-Today)

Tom Fox navigates resource reductions, spots the Chamber of Commerce defending the FCPA and discusses doing business in India. The FCPA Blog notes a purge of ad men in China and reports on recent remarks from the SFO director. The FCPAProfessor runs a guest post about challenges in pursuing bribe-takers.

Fraud:

A grand jury found that fraud persists in programs meant to bring New York contracts to businesses owned by women and minorities. (NY Times)

Money Laundering:

An Indian regulator tightened regulations targeting money laundering. (Economic Times)

The founder and former president of a community bank was sentenced to two years in federal prison for bank fraud and money laundering. (AP)

A senior executive FIFA’s ticketing and hospitality partner could be jailed if he returns to Brazil to await trial for charges including money laundering, racketeering and illegally selling World Cup tickets. The executive denies the charges. (Bloomberg)

Iran and China agreed to fight money laundering together, Iranian media reported. (FARS)

A Thai court extended detention for family members accused of helping their “big brother,” a former top police official, launder bribes. The two denied the allegations. Thai police say the “big brother” confessed to the charges, including soliciting bribes for job appointments and allowing illegal gambling and oil smuggling. (Bangkok Post, AP)

Sanctions:

Republicans are fuming about the Iran nuclear talks extension. Both sides are racing to sign a deal before the new, Republican-controlled Congress takes office. Oman has played a low-key but important role in the negotiations. (National Journal, NY Times, Guardian, ABC News, BuzzFeed)

The extension in talks leaves a U.N. atomic agency probe in limbo; it needs more money to continue the investigation. (Reuters, Reuters)

A European court awarded damages, for the first time, in a sanctions case. (European Sanctions)

Terrorism Finance:

The Islamic State has received between $35 million and $45 million in ransom payments in the past year, a U.N. report said. (AP)

How can a bank know if it’s holding money for a terrorist? (Top Broker)

General Anti-Corruption:

China’s corruption watchdog launched a series of inspections of state-owned enterprises and government bodies, state media reported. (Reuters)

FIFA’s general secretary said the body will need years to repair its reputation. (NY Daily News, AP, Reuters)

The first tennis official to be banned for life from the sport for corruption said he’s innocent and is being used as a scapegoat. (Bloomberg)

What do you do when corruption is treated as part of the business process? (HR Reporter)

Corrupt politicians only suffer when there are local media organizations to report on it. (Nieman Lab)

***

No Blacklist Yet for Islamic State Banks

Why the United States isn’t using its biggest financial weapon against banks in the Islamist militant group’s territory.

In June, the Islamic State of Iraq and al-Sham (ISIS) militants inspired fear and awe when they swept into Iraq’s second-biggest city, Mosul, and reports spread that they looted the city’s banks and walked away with more than $400 million.

Those claims were later contested, but the group’s reputation for being not only savagely violent, but also incredibly wealthy, was already set. In July, the Financial Times reported that armed guards from the Islamic State, as the group later renamed itself, were stationed outside the banks, but that the banks’ coffers had not been pillaged.

Over the summer, the United States continued blacklisting members of the group and its supporters, but not the financial institutions in territory under Islamic State control. The Treasury Department traces its efforts against the group and its predecessor, al Qaeda in Iraq, back to 2004. In August, the United States froze the assets of three key terrorist financiers, one of whom allegedly helped funnel money through Kuwait to ISIL, as the U.S. government calls the group.

In September, 11 more names of individuals were added to the list for allegedly helping move funds and fighters to facilitate terrorist organizations from Iraq to Indonesia. Still, the banks that were so brazenly overrun in Mosul and those in the rest of Islamic State-controlled territory were never named. The reasoning behind that decision illustrates how fraught the U.S. fight to disrupt the Islamic State’s funding has been, as even the best U.S. tools for fighting terrorist financing are ill-suited to the task.

The Islamic State evolved out of earlier extremist groups in the region and improved upon their financial models as it grew. Instead of relying mostly on outside donations, the Islamic State earns most of its money through criminal activity — from oil smuggling to kidnapping — within the territory it controls, which makes it less reliant on the formal financial system. The group’s ability to make money in the illegal financial sector using cash for dealings in stolen oil and antiquities means it is less vulnerable to the biggest weapon the United States uses to go after its enemies’ finances: shutting down the banks, accountants, and middlemen that keep the money flowing.

On Thursday the Obama administration will face questions from Republican lawmakers about U.S. attempts to undercut the Islamic State’s funding. Treasury Department anti-terrorism finance chief David Cohen is set to testify before the House Financial Services Committee.

Texas Republican Jeb Hensarling, the committee chairman, said the hearing would “examine the adequacy of international banking policies to combat the new challenges that the Islamic State and groups like it present.”

In remarks prepared for Thursday’s hearing, Cohen states that the United States is working with “Iraqi authorities, Iraqi bank headquarters, and the international financial community to prevent ISIL from using the scores of bank branches located in territories where it operates.

“The results of this work have begun to show,” Cohen’s remarks state. “We’ve seen a decline in financial activity in areas where ISIL operates, and banks under ISIL influence are losing their access to the international financial system.”

Cohen is also expected to say that U.S.-led airstrikes are taking a toll on the Islamic State’s oil smuggling operations. Since mid-June, the group reportedly has been taking in $1 million a day in illicit oil revenue, but Cohen says that the bombing has lessened the haul to “several million dollars a week” — an imprecise figure, to be sure.

According to Cohen, the United States is also trying to improve its ability to track the extremist group’s money: “We are working with our counterparts in the intelligence community to ramp up collection on ISIL’s finances.”

In addition, the United States is combing through financial data for potential connections to the Islamic State. The Financial Crimes Enforcement Network is assisting in the effort by looking at the data the agency collects in the United States and through the agency’s connections with international financial intelligence-gathering institutions, a spokesman for the agency said Tuesday.

The risk of the Islamic State using the banks to move money internationally has to be weighed against the possible effect on the local population if Treasury tries to cut off those institutions. In a speech last month, Cohen acknowledged that the United States was not using its biggest weapon — shutting banks out of the financial system — against the institutions that had fallen into the hands of the extremists for exactly that reason.

“Our interest is not in shutting down all the economic activity in the areas where ISIL normally operates,” Cohen said. “They are subjugating huge swaths of the population, millions of people, who are still trying to live their lives. And banks, as everybody knows, are important lubricants for the economy.”

Vanda Felbab-Brown, an expert on illicit money at the Brookings Institution, said there are more than humanitarian factors to consider; the United States also doesn’t want to anger locals and push them closer to the extremists.

“At the end of the day what will make a difference in debilitating ISIL will be how much the local population turns against the group,” Felbab-Brown said. “This very tempting desire to shut down the financial system will tremendously worsen the lives of people that are already living in desperation.”

Felbab-Brown said that Somalia taught the United States that lesson. The United States sanctioned al-Shabab in 2010 as a terrorist group, but the move also scared humanitarian organizations out of the country just as a devastating famine was bearing down. Although many blamed the resulting suffering and starvation on al-Shabab, concerns grew that the anger and frustration would push more people toward the militant group.

Felbab-Brown praised the Treasury Department’s careful approach.

“The good thing about Shabab and ISIL is that they’re very heavy-handed and tend to really overplay their hand in terms of violence to the local population,” Felbab-Brown said. Without interference, that violence often becomes intolerable and eats away at the group’s local political support.

“One has to judge very carefully the likelihood of making a difference,” Felbab-Brown said. “And what are the political effects of any policy.”

Dennis Lormel, who led the FBI’s terrorism-financing investigations after the Sept. 11, 2001, terrorist attacks, said the United States doesn’t want to give the extremists an opening to demonstrate leadership.

“If they come out because they have the money to fund social programs that help the local economy and help the people, then they’re going to tout that and they’re going to demonstrate that they care and that the West doesn’t care,” Lormel said. “And they’ll use that as a recruitment tool.”

Perhaps acknowledging the importance of keeping the local economy going, if only so the group can continue extorting money from it, the Islamic State reportedly reopened the banks in Mosul in September, three months after it took control of them. Local reports said the Sunni militants allowed certain account holders to take out money, subject to the approval of an Islamic State committee and a hefty fee off the top.

Some analysts speculate that Treasury could also be keeping the banks open in order to glean intelligence that could help paint a clearer financial picture of the group.

“It’s considered to be more useful to try to watch what’s going on rather than to take some hard, punitive action right away and disrupt the process before you understand how it works and leverage your understanding,” said Patrick Johnston, a counterterrorism expert with the Rand Corp.

Even if the banks were blacklisted, though, it’s not clear that would keep the group from using them.

“They actually could be quite useful for ISIL without even having any real ability to transact with any foreign entity,” Johnston said.

Johnston said the conundrum for the United States is that even if they were to be cut off from the international financial system, the banks could be used to store and transfer money within the group’s territory for much the same reasons of efficiency and security that make banks a preferable way to move money in other countries.

“It really shows the challenge ahead of Treasury as much as anything else,” Johnston said.

 

Islamic State No Threat to the West? Think Again

In America, we cannot know just in fact how many are under the influence is Islam or where they are across the country. We may never know how many travel to the Middle East to join Boko Harem, al Shabaab, al Qaeda, al Nusra or Daesh. We also cannot be confident that these self proclaimed jihadist have not traveled back to their home base in the United States. Relying on media, the State Department, the FBI or DHS to warn us is a fool’s errand.

In the event you are still not convinced, to examine this particular person in Great Britain who was a banker in the City of London, which is no different than New York City.

RT exclusive: From London banker to ISIS militant – one man’s terror trail

“I look forward to death with a smile.”

These words come from a British militant in western Iraq who is fighting for the Islamic State (ISIS) under the nom de guerre Abu A’ntaar.

But one thing separates him from the majority of his comrades; Before his life as a jihadist, A’ntaar claims to have been a business analyst working in the City of London.

For the past month, RT UK has been speaking exclusively to A’ntaar via an encrypted instant messenger popular amongst the social media savvy Western fighters in the region. A’ntaar’s penchant for propaganda made him no different than most western fighters ostentatiously trumpeting their messages via social media. But behind the standard ISIS rhetoric, he does provide glimpses into his daily life, what was expected of him as a fighter, and whether he would consider returning home in the future.

RT did request a video or audio interview with A’ntaar. He refused after the ISIS media department and his higher ranking Emirs (regional leaders) nixed the idea outright.

Reuters/Stringer

A’ntaar is among approximately 500-1000 other Britons currently fighting in the region, according to the British governments’ official estimates. Most Britons enter through the Turkish border into Syria and Iraq, where border guards are willing to ‘turn a blind eye’ for a small fee. In June this year, British intelligence service MI5 said that tracking British jihadis waging war in Syria was now its ‘top priority’ following a recruitment video released by ISIS in which British fighters urged Muslims to come join the fight.

More recently, British foreign fighters made headlines after slickly produced videos were published online, showing the beheading of US journalists James Foley and Steven Sotloff. In both videos, a man dubbed ‘Jihadi John’ by the British media threatens Britain and the United States in what analysts believe is a distinctive London accent. The idea of relatively privileged American and European Muslims leaving home to fight and die under the ISIS flag in a foreign land has captivated the media and public alike. The question is always the same: what makes them do it?

Democracy, Palestine & tyranny

A’ntaar does not reveal too much about his personal life, cagily avoiding any revelatory comments which could have pointed towards his true identity. Answering to why he chose to join the Islamic State, he says he hated “being ruled by laws other than Allah’s” and that the territories currently controlled by ISIS are “the only place where the shari’a of Allah is applied fully.”

“I hate democracy and the self- indulgence of the rich….I hate inequality…I hate the corporations who are trying to destroy this world because of tyranny,” he tells us.

A’ntaar is derisive towards the notion of using the British democratic process to protest against injustices in the Muslim world. For him, peaceful protest is not an option. “I hate that Palestine was never freed for 70+ years whilst we ‘peacefully’ held placards on the street”. But now, according to A’ntaar’s sacred belief, “IS are leading the way as how we should have acted from the beginning.”

Reuters/Thaier Al-Sudani

A’ntaar refused to say whether he had been on any operations, but he did say that as well as being a “soldier,” he is a “suicide bomber” and could ‘destroy’ enemies “at will”.

“I am a walking device,” he told us.

As far as his experiences with combat, few details were forthcoming, apart from the fact that he was constantly armed, “even when in sleep.”

‘They’re not disposable’

Earlier this year, British born Abdul Waheed Majeed made headlines for apparently blowing himself up in an Aleppo Prison, allowing hundreds of detainees- many of whom were high ranking Al-Qaeda operatives, to flee. And while no Britons have been linked to further suicide bombings as of yet, the social media accounts of other suspected Britons such as ‘Usama-al-Britani’ indicate that more are willing to sacrifice their lives if ordered to do so.

The designation “suicide bomber,” however, could in fact be a means of establishing the pecking order of fighters.

“Britons don’t tend to be used on frontlines as suicide bombers” Mark Stephens, deputy director of the Royal United Services Institute (RUSI) in Qatar told RT.

“They’re not disposable. They are mainly being used to do menial tasks [as] most of them don’t speak Arabic,” he said.

Stephens adds that foreign fighters may also be used to provide intelligence and infrastructure to ISIS, which has been as adamant about logistical structures and providing public services as it has been about conducting military operations.

“If one is educated for example and has an engineering degree, then he is not being used as a suicide bomber. You need educated people to run your organization. ISIS isn’t just a terrorist group, it runs cities in the area it controls.”

As more Brits heading to Syria, politicians are currently discussing how to deal with the fighters and the risks they pose to their home countries. In June, Prime Minister David Cameron said that foreign fighters posed ‘the biggest threat’ to Britain’s’ national security, warning that ISIS militants could conduct terror operations on home soil.

Other politicians are calling for jihadis to be offered amnesty like that offered in Denmark, or be subject to ‘deradicalization programs’. The British Home Office, however, has opted instead to take the most hard line approaches in all of Europe. It includes stripping suspected ISIS recruits of their passports, an all out travel ban, and freezing their assets and bank accounts if necessary.

“People seeking to travel to engage in terrorist activity in Syria or Iraq should be in no doubt we will take the strongest possible action to protect our national security, including prosecuting those who break the law,” a Home Office spokesperson told RT.

To A’ntaar, however, the warnings are meaningless. “I do not care for a passport of citizenship or living in the UK. I do not want it at all and the only way I’ll return to the UK is when they get into fight with us, and my leader sends me on a mission to cause destruction from within the enemy,” he says, adding that he would attack Britain only if commanded to do so.

“I want to fight for the khilafah (caliphate) and want to die protecting it so long as it is ruling by Allahs laws. Britain right now is the enemy but its not up to me when to strike them.

“It is up to our leaders how to decide when and how. But we are ready,” he warned.

A’ntaars attitude is similar to that of other ISIS fighters, who, despite pleas from their parents and relatives, express no desire to return home.

“Most fighters don’t want to go back,” Stephens says.

“Family pressure doesn’t do anything to change that. Foreign fighters will never be sent back. The moment he comes back into the country, he [A’ntaar] will be spotted in a second.”

Stephens also tells us that even if there are fighters who want to return home, they would find problems in doing so; “It is difficult to get out of Syria, to get across the border, so it’s unlikely that foreign fighters would go back,” he says.

‘More ruthless than Al-Qaeda’

ISIS is so hardline that it was expelled by al Qaeda’s leader Ayman al-Zawahiri in February this year. Led by an Iraqi called Abu Bakr al-Baghdadi, ISIS was originally an al-Qaeda group in Iraq. Within just a few months, ISIS launched an aggressive expansion campaign, seized key territory, gained thousands of followers and spread fear and terror across Iraq and Syria, so that now experts argue that ISIS eclipsed al Qaeda and made it seem virtually irrelevant.

A’ntaar for his part believes that ISIS is now the global leader in Jihad and that “nothing, absolutely nothing can get rid of it.” He argues that ISIS is stronger than Al Qaeda, because it managed to achieve something the latter never could – establishing a ‘caliphate’.

Reuters/Stringer

“The Islamic State is more advanced, more sufficient in self-finance and more ruthless on enemies than AQ,” he says. While praising the group formerly led by Osama bin Laden, he argues that the group have ‘run out of ideas’ without their leader.

While the skill in which ISIS disseminate their propaganda through videos and social networks is well documented, foreign fighters also assist in spreading it, especially to potential new recruits. Most of the English speaking fighters tend to be active on social media sites including Twitter and ask.fm, where they praise the ‘just actions’ taken by militants, whom they refer to as ‘mujahideen’.

Fighters, both men and women, praise ISIS, citing examples in which it has allegedly rebuilt bridges and schools, and stopped activities including drinking and gambling, that they see as ‘Haraam’ or impermissible.

A’ntaar assures us that he has support from local Iraqis and Syrians, saying that “They hate the Americans, and have long been afraid of the Shi’a government” under former Prime Minister Nouri al-Maliki. He also rejects reports of forced conversions of Yazidis and other minorities, dismissing them as ‘lies’. According to A’ntaar, Yazidis converted out of “their own will,” despite claims made by the United Nations and a number of human rights NGOs.

“It is unquestionably the case that English speakers have a great amount of propaganda potential,” says Tom Keatinge, an associate fellow at RUSI.

Keatinge emphasises how effective English speaking is to Islamist ideology, citing the example of radical preacher Anwar al-Awlaki, who was killed by US drone strikes in 2011. By using familiar terminology and phrases, the English language “can be manipulated to make Jihad appear more appealing than it in reality is,” Keatinge suggests.

This tendency was clear throughout our interview with A’ntaar.

In our attempts to garner insight into his actual life as an ISIS fighter, much of what he imparted concealed in the all too familiar veil of propaganda.

Indeed, the extent to which ISIS is obsessively on point regarding its media message may also be evident in the videos depicting the murder of western hostages, such as James Foley and most recently, David Haines, by suspected British ISIS militant ‘Jihadi John’.

Stephens told us that despite claims that the individual killed the hostages, “Jihadi John was just put out for propaganda purposes, as a direct message to Obama”

“Islam breeds lions…..the West breeds rabbits”

As President Obama announces a new bombing campaign against ISIS fighters in Syria, A’ntaar seemed unfazed when asked whether such action could eliminate the organization. “No problem,” he said. “They can kill 95 percent of us if they are capable but this movement will breed new leaders every time and our enemy will never be [as] relentless as us in pursuing our goals.”

Reuters/Jason Reed

A’ntaar provided no answer when asked how ISIS would go about fighting American-led forces in the event of a strike.

Although few details were forthcoming regarding the groups ability to counter aerial assaults, he implied the militants were undergoing training to manage airstrikes.

Our conversation with A’antaar ended soon thereafter, following “orders” that he was no longer allowed to talk to journalists. Whether he was taking orders from the IS media department or in fact an integral part of it is a matter of pure speculation.

One thing, however, remains certain. Authorized to speak to us or not, he did not miss a beat in communicating a well formulated message- a message, incidentally, which foreign fighters like him have proved indispensable in providing.

In one of the last messages A’antaar sent to us, he says: “Islam breeds lions who can never be defeated in the fields, while the West breeds rabbits.”

“We want American and west to come to Syria and fight us. We want to strike the jugular vein of the kuffar (infidel) and the jugular vien [sic] of the kuffar is America.”