Posted on 02/19/2004 2:13:40 PM PST by nuconvert
Treasury Blocks Assets of U.S. Arm of Saudi Charity Suspected of Funding Al-Qaida
Feb. 19, 2004
By Jeannine Aversa / Associated Press Writer
WASHINGTON (AP) - The government has ordered banks to freeze the assets of the U.S. arm of a large Saudi charity that is accused of funneling contributions to help finance al-Qaida's terrorist activities. The action announced Thursday affects the Al-Haramain Islamic Foundation's operations in Ashland, Ore., and Springfield, Mo., said Richard Newcomb, director of the Treasury Department's Office of Foreign Assets Control.
OFAC said the financial assets and property belonging to those branches "are blocked pending investigation" under the 2001 USA Patriot Act. Newcomb said it was too early to say whether any bank accounts or other assets have been found and their value.
Treasury's action is part of a larger probe into Al-Harmain's operations worldwide and will help the government determine "if there are those al-Qaida ties" at the U.S. branches as alleged in some other foreign branches, said Juan Zarate, Treasury's deputy assistant secretary for terrorist financing and financial crimes.
Working with the Saudis, the United States has moved to freeze the assets of six foreign branches of Al-Haramain that it contends diverted money to support al-Qaida's terrorist activities. Al-Haramain has denied any link to terrorist activities and said it was only involved in charity work for the poor. The United States has not taken action against the charity's main office in Saudi Arabia.
Federal authorities conducted a search Wednesday of the charity's property in Ashland, Ore., as part of a "criminal investigation into possible violations of the Internal Revenue Code, the Money Laundering Control Act and the Bank Secrecy Act, " Treasury said.
"The suspected crimes relate to possible violations of the currency reporting and tax return laws by two officers of the Ashland, Ore., office of Al-Haramain," the department said.
Authorities are looking into the movement of an estimated $131,000 in February 200 and March of that year, said Richard Speier, IRS deputy chief of criminal investigations. The money flowed in from London to the Oregon charity and then out to Saudi Arabia, and it isn't believed to have been properly reported, he said.
Speier also said it is looking into several "false statements" on the Oregon charity's tax return that involved understating income from contributions and grants and overstating the value of property.
Separately, Treasury moved to block the assets of 37 people and three companies - all outside the United States - believed to be linked to either the Revolutionary Armed Forces of Colombia or the United Self-Defense Forces of Colombia, two groups which the United States previously designated as drug traffickers and global terrorist organizations.
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