Senate panel hears evidence on terrorist funding

01 August 2003
The US Treasury Department sought to impose restrictions on certain Saudi charities suspected of links to terrorism, but were blocked by the State Department, according to officials testifying before a Senate hearing on 31 July. The Governmental Affairs Committee is examining whether the State Department protected the institutions in order to maintain good relations with Riyadh. Richard Newcomb, director of the Treasury's office of foreign assets control, was asked specifically about the World Assembly of Muslim Youth, a government-sponsored charity, and its offshoot, the International Islamic Refief Foundation, and about National Commercial Bank (NCB). Newcomb said only that his office had been looking at these groups, but has been ordered to provide a list detailing which charities he sought to impose controls on, and how many times. Sources familiar with the suppressed 'terrorism finance' section of the 900-page report on the lead-up to the 11 September terrorist attacks say that the World Assembly's activities are discussed. Riyadh has demanded that the section be declassified to allow it to rebut the allegations but the White House has turned down the request (MEED 31:7:03). John Pistole, deputy assistant director of the FBI's counter-terrorism division, told the panel that Saudi co-operation in the fight against terrorism was limited prior to 11 September but had since improved significantly. 'I think the royal family in particular feels vulnerable,' he said. 'I think they see themselves in a struggle for survival at this point.'

Republican Senator Arlen Specter, sitting on the committee, called for the dismissal of Saudi ambassador to the US, Prince Bandar bin Sultan, on the grounds that he had failed to staunch the flow of Saudi funding to US-based terrorists.

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