U.S. Senate Holds Hearing on Counterterror Financial Enforcement Initiatives

On September 25, 2003, the U.S. Senate Committee on Banking, Housing and Urban Affairs heard from officials in various departments coordinating on ?Counterterror Initiatives in the Terror Finance Program.? Testifiers included: Senator Paul S. Sarbanes, Ranking Committee Member; David D. Aufhauser, Chairman, Policy Coordinating Committee on Terrorist Financing of the National Security Council; E. Anthony Wayne, Assistant Secretary for Economic and Business Affairs, U.S. Department of State; John S. Pistol, Assistant Director, Counterterrorism Division, Federal Bureau of Investigation. Senator Sarbanes emphasized that the Committee needed to investigate the details of money transfers between terrorists? funders and the terrorists themselves. Mr. Aufhauser cited Saudi Arabia as the ?epicenter? of terrorist financing. He urged the U.S. to reexamine its financial system, especially regarding charities since many terrorist groups have raised funds in that manner. He went on to discuss achievements in that area through the present. Mr. Wayne lauded current efforts to counter terrorist financing. He detailed a recent diplomatic victory, by which the EU designated the whole of HAMAS as a terrorist organization, not just its military wing. Mr. Pistol described how the FBI created a new branch in its counterterrorism division after the events of September 11th, the Terrorist Financing Operations Section (TFOS). TFOS has been charged with coordinating investigative efforts in terrorist financing within the FBI and with the Bureau?s contacts.