^Financial Aspects of the International Coalition's War on Terrorism: Steps Toward Leade...

Page 1 of 4

Home I Contact Us I Emailifiista I FOiA I iRwacy Nobce • I .Arcnwe

U.S. DEPARTMENT of STATE

About the Press and Travel and Countries lntenB{iorai Histor¥', Eclucation Business
State Dept. Public Affairs LivingAtaad hssiKS and Cutture Center

[Print Friendly Version]

Financial Aspects of the International Coalition's War on Terrorism: Steps

Toward Leadership for the OSCE
Earl Anthony Wayne, Assistant Secretary for Economic and Business Affairs
Remarks to the Organization for Security and Cooperation in Europe Economic Forum
Prague, Czech Republic
May 31, 2002

(As Delivered)

Thank you, Mr. Lopes-Aleixo for this opportunity to speak. First, I would like to express my special thanks and
gratitude to Secretary General Kubis and to the Office of the Economic Coordinator for their initiative in
envisioning and hosting today's special session, and in advance to the Portuguese Chair for organizing the
meeting on June 12.1 very much regret I was not able to be here in Prague for the opening of this Forum.

I know discussions here over the past few days have centered on cooperation and confidence building as a
means of enhancing security. With respect to cooperation on water, we learned that cooperation on technical
issues of mutual interest is often possible when dialogue on other issues is difficult. As Ambassador Minikes
noted at the beginning of the plenary session, the United States places great importance on the Economic and
Environmental Dimension of the OSCE, and we believe this serves to promote the proper functioning of
economies, prudent use of environmental resources and transparency in government. Engagement on
environmental issues can promote cooperation and build confidence more broadly. Again, I would like to
congratulate the Portuguese Chairmanship and the Office of the Economic Coordinator for their work on water
issues over the past year. Such work is a reflection of the OSCE's comprehensive approach to security, in its
economic and human aspects as well as its political-military ones.

Openness and transparency are also a very important theme in today's special session: the OSCE role in
combatting terrorist financing. I hope to express briefly how, as part of the international coalition's assault on
the financial dimensions of terrorism, the OSCE can contribute to, and help lead, that multilateral effort. I then
look forward to hearing from panelists and other members during the course of today's session what you and
your governments have to say about the role of the OSCE in the financial aspects of our joint struggle against
terrorism.

First, I am struck that so many of the same anti-terrorist themes we will be addressing here today recur in
virtually every meeting, conference or encounter between governments today. In its broad outlines and
common goals, the dialogue we are having in Prague and within the OSCE is also being conducted in capitals,
chanceries, legislatures, newsrooms, cafes and living rooms in our home countries. Since the events of last
September in the United States, nations and peoples everywhere are engaged with a remarkable sense of
unity in a struggle to understand and to overcome the common threat which global terrorism represents.

I'd like to review with you some of the financial and economic aspects of our collective campaign, with specific
reference to the actions and goals of the United States and the United Nations, and then address current roles
and potential leadership of the OSCE in this effort.

Our collective effort must place high priority on the combatting and suppression of terrorist financing - choking
off the resources that make the horrific events like those of September 11 possible. My own Government,
based on the work of our policy coordinating committee which brings together the Department of State, the

http://www.state.gov/e/eb/rls/rrn/2002/10605.htm 1/12/2004
 TESTIMONY BY E. ANTHONY WAYNE
ASSISTANT SECRETARY FOR ECONOMIC AND BUSINESS AFFAIRS
DEPARTMENT OF STATE
TO THE
SENATE BANKING COMMITTEE

September 25, 2003

U.S. INTERAGENCY EFFORTS TO COMBAT TERRORIST FINANCING

Mr. Chairman and distinguished members of the Committee: thank you for the
opportunity to testify on U.S. efforts to combat terrorist financing.

The United States remains engaged in a long-term war against terrorism. I thank you for
your support and for providing the necessary tools for waging this war. This fight
requires actions on several fronts. A critical front is the effort to defeat, disrupt, and
destroy the financial networks that sustain terrorists and finance their operations.

I would like to begin by recognizing how far we have come in terms of USG interagency
coordination when it comes to dealing with terrorist financing. We have made enormous
strides in improving the degree to which all U.S. agencies with equities related to the
pursuit of terrorist financing cooperate and coordinate their efforts. This strong
interagency teamwork involves the intelligence and law enforcement communities, as
well as State, Treasury, Homeland Security and Justice collectively pursuing an
understanding of the system of financial backers, facilitators and intermediaries that play
a role in this shadowy financial world. It involves the Treasury Department, coordinating
the policy process by which we examine actions to disrupt these financial networks. It
involves the Department of Justice leading the investigation and prosecution in a
seamless, coordinated campaign against terrorist sources of financing. And, it involves
the State Department leading the interagency process through which we develop and
sustain the bilateral and multilateral relationships, strategies and activities, including, in
coordination with Justice, Treasury and Homeland Security, the provision of training and
technical assistance, to win vital international support for and cooperation with our
efforts.

A Policy Coordination Committee established under the framework of the National

Security Council and chaired by the Department of the Treasury ensures that our
activities are well-coordinated. The Department of State, the Department of the
Treasury, the Department of Justice, the Department of Homeland Security, intelligence
agencies, and law enforcement agencies all work very closely together in this effort. The
Department of Homeland Security is a recent addition to the framework and we look
forward to involving them in the disruption of networks bearing also on homeland
security. Our task has been to identify, track and pursue terrorist financing targets and to
work with the international community to take measures to thwart the ability of terrorists
to raise and channel the funds they need to survive and carry out their heinous acts.
International Dimension of Combating the Financing of Terrorism Page 1 of 5

W U.S. DEPARTMENT of STATE

International Dimension of Combating the Financing of Terrorism

E. Anthony Wayne. Assistant Secretary for Economic and Business Affairs

Testimony to House Committee on International Relations, Subcommittee on International
Terrorism, Nonproliferation and Human Rights
Washington, DC
March 26, 2003

Mr. Chairman and distinguished members of the Committee: Thank you for the opportunity to testify
on the international dimensions of the fight against terrorist finance. The United States remains
engaged in a long-term war against terrorists and terrorist organizations with global reach. I thank
you for your support and for providing the necessary tools for waging this war. This fight requires
actions on several fronts. A critical front is the effort to disrupt the financial networks that sustain
these organizations and finance their operations.

Since our enemy has global reach and is supported by a global network, we need a global strategy. The State
Department has been a close partner with the Department of the Treasury, the Departments of Justice and
Homeland Security, law enforcement agencies, and intelligence agencies, as the Administration has
formulated and implemented a comprehensive strategy to disrupt, dismantle and shut down the financial
networks that support terrorism.

I would like to take this opportunity to highlight two major developments over the past year and a half affecting
our fight against international terrorist financing. The first involves the nature of the USG's [U.S. Government's]
own approach to tackling international terrorist financing and the second, on which I will elaborate, involves the
nature of the international community's efforts.

USG Efforts

Regarding the USG's own efforts, I believe it is important to recognize how far we have come in terms of
interagenfjy pr.nrHinati/-.n vVe have made enormous strides in improving the degree to which all^u.b. agencies
with equities related to the pursuit of terrorist financing cooperate and coordinate their efforts. This strong
interagency teamwork involves the intelligence agencies, with support from other agencies including the State
Department, all leading the Administration's efforts to understand the system of financial backers, facilitators
and intermediaries that play a role in this shadowy financial world. It involves the Treasury Department,
working with other agencies, leading the process by which we examine the actions by which we can disrupt
these networks. The Department of Homeland Security will also be assuming an important place in this
interagency process. And it involves the State Department leading the interagency process through which we
develop and sustain the bilateral and multilateral relationships, strategies and activities to win international
support for and cooperation with our efforts.

A Policy Coordination Committe^ established under the framework of the National Security Council and
chaired by the Department of the Treasury ensures that these activities are well-coordinated. The Department
oTbtate, the Department ot the Treasury, the Department of Justice, increasingly now the Department of
Homeland Security, intelligence agencies, and law enforcement agencies have all worked very closely
together. Their task has been to identify, track and pursue terrorist financing targets and to get the international
community to take measures and adopt rules and regulations designed to undermine the ability of terrorists to
raise and channel the funds they need to survive and carry out their heinous acts.

A key weapon in this effort has been the President's Executive Order 13224, which was signed on September
23, 2001, just 12 days after September 11. That Order initiated an unprecedented effort in history to identify
and to freeze the assets of individuals and entities associated with terrorism across the board. Under that

http://www.state.gOV/e/eb/rls/rm/2003/l 9113pf.htm 5/6/2003