87 of 295 DOCUMENTS

Content and programming copyright 2002 Cable News Network Transcribed under
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Formatting Copyright 2002 eMediaMillWorks, Inc. (f/k/a Federal Document Clearing
House, Inc.). All rights reserved. No quotes from the materials contained herein may be
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copied or resold in any media.

CNN

SHOW: CNN LIVE EVENT/SPECIAL 10:00

December 3, 2002 Tuesday

Transcript # 120301CN.V54

SECTION: News; International

LENGTH: 8072 words

HEADLINE: Saudi Arabian Press Conference on Terror Investigation

BYLINE: Leon Harris, Andrea Koppel

HIGHLIGHT:
The Saudi Arabian press conference on their terror investigation.

BODY:
LEON HARRIS, CNN ANCHOR: Saudi Arabia talks about its role on the war on terrorism. Now, any minute
now, officials are set to release a report detailing what the kingdom has done, and says will do, to track money from its
citizens. This is in answer to critics who say that Saudi efforts have been ineffective to this point and insincere as well.
This news conference is set to get under way any time this hour — as you see, there's a live picture that we have set
up — and we'll go there once it gets under way.
Now, for more on what we can expect to hear at this news conference, let's bring in our State Department
correspondent, Andrea Koppel. She is following the story for us in Washington.
Good morning ~ Andrea.
ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: Good morning, Leon.
Well, as you know, anybody who has picked up a paper in the last week or turned on the television has seen reports
which allege that the man who is the top diplomat in this building here at the Saudi embassy, Prince Bandar bin Sultan,
and his wife, Princess Haifa, had been accused by unnamed U.S. officials of inadvertently supporting passing donations
to individuals who ended up giving the money - may have given the money, in fact, to two of the 9/11 hijackers.
It is in response to those reports, which the Saudi government adamantly denies, and in addition to a series of
negative reports that have criticized the Saudi government for not doing enough to crack down on terrorism, in
particular to crack down on the giving of money, of tithing of Saudi incomes to charitable organizations linked to
terrorism that the Saudi government today decided to take the PR offensive.
 82 of 295 DOCUMENTS

Copyright 2002 News World Communications, Inc.

The Washington Times

December 4, 2002, Wednesday, Final Edition

SECTION: PAGE ONE; Pg. A01

LENGTH: 940 words

HEADLINE: Saudis seek to cut cash flow to terrorists;

U.S. critics of Riyadh angrily rejected

BYLINE: By David R. Sands, THE WASHINGTON TIMES

BODY:
Saudi Arabia yesterday announced new controls on its Muslim charities to prevent the flow of funds to violent
Islamist groups, as a top government spokesman angrily rejected criticisms that the oil-rich Gulf kingdom had not done
enough in the global war against terrorism.
U.S. critics of Saudi Arabia welcomed the proposed crackdown, but noted that past efforts to secure Saudi
cooperation had foundered when the trail veered too close to supporters of the ruling royal family.
Adel Al-Jubeir, foreign policy adviser to Crown Prince Abdullah, Saudi Arabia's de facto leader, condemned what
he called a "feeding frenzy" of criticism in the United States directed at Saudi Arabia, saying the detractors were
playing into the hands of Saudi-born terrorist mastermind Osama bin Laden in driving a wedge between two longtime
allies.
"We believe very strongly that pointing fingers and assigning blame doesn't get us or you or the rest of the world
anywhere," Mr. Al-Jubeir told a packed news conference at the Saudi Embassy.
"What we need to do, as we have done, is join hands, wrack our brains together, and find ways to fight the scourge
of terrorism."
Mr. Al-Jubeir also told reporters that Saudi Arabia plans to name Prince Turki al-Faisal, the kingdom's former
intelligence chief, as ambassador to Britain.
He denied the appointment had anything to do with giving the prince diplomatic immunity to protect him from
lawsuits stemming from the September 11 attacks.
Relatives of about 900 people killed in the attacks on New York and Washington filed a civil lawsuit in the United
States in August accusing three Saudi princes, including Prince Turki, as well as Saudi and foreign banks, of funding
bin Laden.
Officially, the Bush administration has praised Saudi cooperation in the wake of the September 11 attacks, in which
15 of the 19 hijackers carried Saudi passports.
"Our view has been all along that Saudi Arabia has been very cooperative in terms of the war on terrorism prior to
and certainly since September 11," said State Department deputy spokesman Philip Reeker, who welcomed the news of
tighter controls over Saudi financial flows.
Mr. Al-Jubeir said U.S. and Saudi officials also will "reinvigorate" a joint counterterrorism committee that will
meet in Washington next month to assess the state of financial, intelligence and legal cooperation in the fight against
terrorism.
Saudi Official Says Saudi Arabia is "Mobilized" to Fight Terrorism Page 1 of 3

U.S. D E P A R T M E N T OF SIATE

I N T E R N A T I O N A L INFORMATION P R O G R A M S
International Security | Terrorism

12 June 2003

Saudi Official Says Saudi Arabia is "Mobilized" to Fight

Terrorism
Says religious, financial and education reforms are underway

By Charles Hays Burchfield

Washington File Staff Writer

Washington — The foreign affairs advisor to Crown Prince Abdullah bin Abdulaziz Al-
Saud, Adel Al-Jubeir, said Saudi Arabia is doing "everything possible" to fight
terrorism.

"The attacks in Saudi Arabia represented a major jolt, and they've brought out the
determination by Saudis to ensure that we can do everything possible to prevent such
murders from happening in our country again," Al-Jubeir said at a news conference in
the Saudi Arabian embassy in Washington June 12.

The news conference was held exactly one month after four suicide car bombings by
al-Qaeda terrorists killed 35 people and injured about 200 at housing compounds for
Westerners in Riyadh, Saudi Arabia.

Al-Jubeir said the attacks have "galvanized" and "mobilized" the government of Saudi
Arabia to "go after the terrorists and bring them to justice." He said the Saudi
government has detained over 25 people in connection with the bombing and has
questioned "scores of people."

He also said the Saudi government has sought help from a number of countries
including the United States, has started to root out extremism in Saudi mosques, is
moving to close the door on terrorist financing and money laundering and has taken
steps to improve the Saudi educational system.

Al-Jubeir said Saudi authorities have questioned over 1,000 people since the terrorist
attacks on Sept. 11, 2001 and have detained about 300 Al-Qaeda members,
approximately 100 of whom are awaiting court trials in the country.

In addition to arresting Al-Qaeda members, Saudi Arabian officials have arrested three
clerics who preached hatred and intolerance, according to Al-Jubeir.

"We have looked more intensely in terms of what is being said in our mosques and
trying to curb incitement," Al-Jubeir said.

He said over the last few months Saudi Arabia has dismissed several hundred imams
for "straying out of the bounds of religion and/or engaging in political activity." Al-
Jubeir said the government has referred over 1,000 imams to educational programs in
order to teach them "about their role and what is permissible and what is not
permissible so that we can eliminate extremism, intolerance and radicalism from our

http://usinfo.state.gov/topical/pol/terror/texts/03061209.htm 6/24/03
Saudi Arabia, press releases, 06/12/03: SAMA implements new regulations regarding cha... Page 1 of 2

f
XT
Royal Embassy of Saudi Arabia
Information Office
PRESS Washington, D.C.
RELEASES

CURRENT
NEWS PRESS RELEASE
June 12, 2003
HOME

STATEMENTS
AND SAUDI ARABIAN MONETARY AGENCY IMPLEMENTS NEW
SPEECHES REGULATIONS REGARDING CHARITIES
[Washington, DC] -- The Head Office of the Saudi Arabian Monetary
Agency (SAMA) recently distributed a circular to all banks and financial
institutions in the Kingdom of Saudi Arabia requiring the full and
immediate implementation of nine new policies and procedures that
relate to the accounts of charitable and welfare institutions. SAMA
Governor Hamad Saud Al Sayyari issued the following order in regard to
the updated directives: "These rules and instructions are to be
implemented immediately upon receipt of this circular, and SAMA is to
be informed on the actions taken."
According to Ambassador to the United States Prince Bandar bin
Sultan, "Charitable funds can no longer go outside of Saudi Arabia
without strict government oversight and control."
The new policies and procedures have been implemented to
ensure that funds meant for charitable purposes are not
misappropriated. For example, all bank accounts of a charitable or
welfare society must be identified and consolidated into a single account
for each such society; and deposits in these accounts will be accepted
only after the depositor provides the bank with identification and all
other required information for verification. No charitable or welfare
society can open or operate these bank accounts without first
presenting a valid copy of the required license. Cash withdrawals from
such accounts are strictly prohibited.
Ambassador Prince Bandar bin Sultan declared: "We have closed
the door on the possibility for charitable giving to be misappropriated
for illegal purposes."
In another memo issued by SAMA's Head Office regarding its
Rules Governing Anti-Money Laundering and Combating Terrorist
Financing, the Agency states: "SAMA intends to-verify the
implementation of these rules by Saudi banks through the Agency's on-
site inspections, receipt of regular compliance reports and certification
by external auditors." The rules incorporate the Banking Control Law, all
of SAMA's regulations, the FATF 40 Recommendations, the FATF 8
Special Recommendations on Terrorist Financing, and all relevant UN
Security Council Resolutions.
Saudi Arabia remains determined to combat and bankrupt

http://saudiembassy.net/press_release/releases/03-PR-0612-S AMA.htm 6/24/03

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Subject: article of possible interest..

Financial war on terrorism suffers from agency rivalry

Effort to cut cash flow stymied by lack of cooperation and evidence, turf
battles

LOS ANGELES TIMES

Originally published Sunday, April 7, 2002

WASHINGTON -- The U.S. government's much-touted financial war on terrorism has

been hamstrung by bitter turf battles among federal agencies, questionable
evidence against targeted Middle Eastern groups and a lack of cooperation by
foreign allies, senior government officials said.

In recent months, President Bush and his top Cabinet members have hailed the
U.S. government's effort to "shut down the money pipeline" as a vital
component of United States counterterrorism strategy.

But privately, some administration officials are saying the strategy isn't
working as advertised.

"You read the papers and it seems like everything is going great," said one
senior law enforcement official. "But this is no way to run an investigation.
And the worst part is that this is the biggest case in existence. And so much
is at stake."

Range of woes

Debate over the problems has occurred at the highest levels, according to
interviews with more than dozen law enforcement, intelligence and
counterterrorism officials familiar with the financial crackdown.

Many of them say a number of financial crackdowns on groups with suspected

terrorist ties were launched prematurely or lacked evidence. They add that the
United States is receiving far less cooperation than it needs from many allied
nations, which have pledged to help choke off the terrorist money supply but
lack the political will, technical know-how and legal framework to make that
happen.

Some officials involved in implementing the Patriot Act, which granted

authorities broader powers to track suspected terrorist money, are now saying
it is too unwieldy and unrealistic.

http://kinesis.swishmail.com/webmail/imp/message.php ?index=482 7/3/03

Saudi Arabia, press releases, 06/18/03: money launderers to be severely punished</font>... Page 1 of 1

"X""
Royal Embassy of Saudi Arabia
Information Office
PRESS
Washington, B.C.
RELEASES

CURRENT
NEWS PRESS RELEASE
June 18, 2003
HOME

STATEMENTS MONEY LAUNDERERS TO BE SEVERELY PUNISHED

AND
SPEECHES [Washington, DC] ~ The Consultative Council has approved new
legislation which puts in place harsh penalties for the crime of money
laundering. The law consists of 29 articles and stipulates jail sentences
of up to 15 years and a fine of more than $1.5 million for anyone
laundering money through charities. Other money-laundering offenses
are punishable by up to 10 years in jail and a fine of $1.3 million.
Adel Al-Jubeir, Foreign Affairs Advisor to Crown Prince Abdullah stated:
"The new legislation will serve as a deterrent as well as facilitate our
ability to monitor criminal financial transactions."
The new legislation strengthens law enforcement by including bans on
any commercial or financial transactions in which the parties involved
are unidentified; requiring financial institutions to keep records of all
transactions for a minimum of 10 years; and allowing the exchange of
information between the Kingdom and other countries regarding money
laundering operations.

- end -

http://saudiembassy.net/press_release/releases/03-PR-0618-moneylaundering.htm 6/24/03
washingtonpost.com: Report: Terror Funds Row Through Saudi Arabia Page 1 of 3

washingtonpost.com

Report: Terror Funds Flow Through Saudi Arabia

Fundraising by Al Qaeda Sympathizers Continues Unabated in the Kingdom

By Douglas Farah
Washington Post Staff Writer
Wednesday, October 16, 2002; 7:43 PM

The Bush administration's efforts to cut off funds for international terrorism are destined to fail until it
confronts Saudi Arabia, whose leaders have tolerated some of its wealthy citizens raising millions of
dollars a year for al Qaeda, according to a new report from an influential foreign policy organization.

The report from the New York-based Council on Foreign Relations, scheduled for release today,
contends that the administration must pressure the Saudis-as well as other governments - to crack down
on terror financing, even at the risk of sparking a public backlash that could jeopardize the Saudi
government.

"It is worth stating clearly and unambiguously what official U.S. government spokespersons have not,"
the report notes. "For years, individuals and charities based in Saudi Arabia have been the most
important source of funds for al Qaeda, and for years the Saudi officials have turned a blind eye to this
problem."

Administration criticism of Saudi Arabia, the top oil supplier to the United States and a crucial ally if the
Bush administration takes military action against Iraq, has been largely muted since the Sept. 11 attacks,
despite the belief of many law enforcement and intelligence officials here and abroad that al Qaeda
relies on wealthy Saudis for most of its funding.

Earlier this year, however, relations became strained when a defense consultant told a Penatagon
advisory committee that Saudis were active at all levels of the terror chain..«.a
;ir
The Saudi government had no immediate response to the report. Its embassy in Washington put out a
statement praising U.S.-Saudi cooperation in freezing terrorist assets and cracking down on charities,
saying the support and financing of terrorism "cannot be tolerated."

But the report drew a sharp rebuttal from the Bush administration. Robert Nichols, the Treasury
Department's deputy assistant secretary for public affairs, said the report was "seriously flawed" and that
his department considered it a "Clinton-era snapshot of what al Qaeda looked like in 1999 or 2000"
without taking into account the new resources and strategies to combat terror financing.

"We are not claiming victory, we are not spiking the football, but we are off to a good start," Nichols
said.

Administration officials said they were angry that Treasury and other agencies had not been invited to
brief the panel. But Maurice R. Greenberg, the panel's chairman, said that in late August the council
extended a written invitation to the NSC to address the group and an oral invitation to Treasury. Both
were declined, he said.

The report, prepared by a bipartisan panel of financial and terrorism experts, reveals no new details
about U.S. or Saudi efforts to staunch terror funding. But it plainly asserts what many officials have said

http://www.washingtonpost.com/ac2/wp-dyn/A36948-2002Octl6?language=printer 5/27/03
) Saudi mea culpa
By Arnaud de Borchgrave
THE WASHINGTON TIMES
The 24,000-strong Saudi royal family has finally conceded that the root cause of Islamist terrorism has
been its own Wahhabi ideology. It was Wahhabism that spawned Osama Bin Laden and his al Qaeda.
The 1979 "concordat" between the House of Saud and the kingdom's clergy has now been breached.
Following the al Qaeda suicide bombings of apartment buildings in Riyadh on May 12 that killed 35,
including eight Americans, Saudi security and intelligence organizations reported what the royal family
was loath to hear: Almost 1,000 Saudi clerics are either linked to, or in sympathy with, al Qaeda. They
have been fired or banned from addressing worshippers after Friday prayers. Acting in the name of King
Fahd, who is too ill to rule, Crown Prince Abdullah has issued new regulations prohibiting any reference
to jihad, or holy war, in radio and television broadcasts.
The royals are also drafting new regulations that the Wahhabi clergy will most probably consider
sacrilegious. The new rules would actually remove elements of Wahhabi doctrine — Islam's strictest
interpretation of the Koran — as it is presently taught in mosques and schools around the kingdom.
Security chiefs of the 22 Arab League nations, meeting in Tunis last week, quickly agreed on the
existence of a direct link between al Qaeda terrorist attacks and a clergy that promotes holy war in holy
places.
Mohammed bin Al Kuman, chairman of the Arab League's council of interior (internal security) ministers,
said the most urgent need was for moderate clerics who can see that Islam has been hijacked by
extremists who preach hatred of the United States and Israel in particular, Western values in general.
President Bush has repeated frequently since September 11 that the United States is not at war with
Islam. But radical Islam is very much at war with the United States. And Arab governments have now
decided to face the challenge.
The Saudi clergy has sent Wahhabi clerics as missionaries all over the world to build mosques and set up
madrassas (Koranic schools that teach only religion, to the exclusion of all other disciplines). There are
about 2,000 mosques in the United States, most of them started by Wahhabi clerics.
In 1979, scores of Muslim terrorists seized the Grand Mosque in Mecca and kept Saudi security forces at
bay for two weeks. Non-Muslims are not allowed anywhere near Mecca or Medina, so Saudi authorities
deny to this day that French specialists were called in with sophisticated methods to subdue the Wahhabi
rebellion. The Wahhabi revolutionaries had sought refuge in the catacombs. The French specialists
advised them to flood them and then stick high voltage cables in the water.
The clergy pledged in the "concordat" that followed the near disaster to refrain from criticizing the
extravagant excesses of the royal family. In return, the House of Saud gave free rein to the Wahhabis —
outside the kingdom. In Pakistan, they took advantage of the Saudi-U.S.-Pakistani entente to drive the
Soviets out of Afghanistan to set up a string of madrassas along the Pakistan-Afghanistan border. The
idea, first proposed by Gen. Zia ul-Haq, the late dictator of Pakistan, was to build an ideological barrier
against what was then perceived to be the threat of Soviet expansionism through Baluchistan to the
Arabian Sea.
Following the withdrawal of Soviet forces from Afghanistan in February 1989, the Saudi Wahhabis
lavished some $300 million a year on building a network of several thousand madrassas, from Peshawar
to Islamabad, Lahore, and Karachi and hundreds of towns and villages along the way. From Pakistani
madrassas, young Muslim men from some 30 countries, went on to Afghanistan for training in al Qaeda's
camps. Those who showed more promise for intellectual pursuits stayed on an additional two years to
qualify as imams and mullahs.
The University for the Education of Truth, a leading madrassa in Khattak nearfPeshawar, graduated nine
out of Taliban's top 10 leaders. With a student body of 2,500, the institution is fully funded by the Saudi
clergy and wealthy Saudis. Its president, Sami ul-Haq, is now a prominent member of the MMA — a
coalition of six political-religious parties that governs the Northwest Frontier Province, shares power in
Baluschistan and holds 20 percent of the seats in the National Assembly in Islamabad. Mr. Sami is a
close friend of Osama Bin Laden.
U.S. aid to Pakistan includes some $100 million over five years to reform the madrassas and revise the
curriculum to include other disciplines besides religion. A small number of these schools have gone along
with reform; the overwhelming majority of religious teachers have told the authorities to butt out. Saudi
Wahhabi money is still outspending U.S. aid to education reform by 10 to 1.
- HvIEMRI: Page 1 of 3

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MEitflfcl
TOE M1DDU? BAST MHMA RESEARCH KiSTmjTS
Special Dispatch Series - No. 535
July 9, 2003 No.535

Saudi Editor-in-Chief Fired Following Criticism of Ibn

Taymiyya, Spiritual Father of Wahhabism

On May 27, 2003 , approximately two weeks after the suicide bombings in
Riyadh , the editor-in-chief of the Saudi daily Al-Watan, Jama/ Khashoggi,
was fired by order of the Saudi Information Ministry. At the time, no official reason
was given for his dismissal.

Al-Watan was founded in 2000, in the city ofAbha in the southern Saudi district of
Asir, a district which is a major basis of support for Saudi Islamists. The
cornerstone of the paper's building was laid by Crown Prince Abdallah, and its
board of directors is headed by Prince Bandar bin Khaled AI-Faisal. The paper
takes an independent line and demonstrates a stance considered liberal by Saudi
standards. The newspaper's op-ed page reflects pluralism, and features articles
expressing diverse opinions. The following offers a brief background of Khashoggi
as well as excerpts from an op-ed published in Al-Watan which likely led to his
dismissal:

Editor-in-Chief Khashoggi

Jamal Khashoggi served as the paper's editor-in-chief for only a few weeks; his
previous position was as editor of the Saudi English-language weekly Arab News.
Despite his brief tenure, he managed to arouse the ire of Saudi Islamist elements,
both establishment and opposition, because of a series of articles condemning the
Saudi government's Authority for the Promotion of Virtue and Prevention of Vice
(i.e. the religious police). Following the publication of these articles, attacks were
launched against Al-Watan by several Islamist websites which support bin Laden
and oppose the Saudi regime. These websites also support the Saudi religious
police, even though it is a government body. The websites featured a parody of
the Al-Watan ("The Homeland") logo, that read instead Al-Wathan - "The Pagan
Idol."

The newspaper angered Islamists for other reasons as well. For example, it
discussed women's issues such as identity cards and the right of women to drive
cars. The result was a frequent turnover of editors-in-chief - Khashoggi was the
third, though the paper has been in existence for less than three years. He was
replaced by Tarek Ibrahim.

It recently became known that the last straw that led to Khashoggi's termination
was an op-ed on the Riyadh bombings that appeared in the May 22 edition; the
op-ed criticized Ibn Taymiya (1268-1328), the spiritual father of
Wahhabism, which is the Saudi kingdom's official stream of Islam. XI]

'The Words of Ibn Taymiya are the Real Problem'

The following are excerpts from the article, titled "The Individual and the
Homeland Are More Important than Ibn Taymiya," by Khaled AI-Ghanami: "It is

http://memri.org/bin/opener.cgi?Page=archives&ID=SP53503 8/6/03
3) Immigration Case in Virginia May Complicate Saudi-U.S. Ties

By GLENN SIMPSON and DAVID S. CLOUD

WALL STREET JOURNAL

WASHINGTON -- The Justice Department secretly held for more than a month a man who
managed some U.S. investments of a major Islamic charity sponsored by the Saudi government,
turning up the heat on the charity as the Saudi government sought to help the U.S. interview
terror suspects in Iran.

Soliman Beheiri, who was indicted on immigration charges last week, also founded a real-estate
firm where two U.S.-described supporters of terrorism allegedly made investments. Mr. Beheiri is
being held as a material witness under a sealed U.S. grand-jury inquiry into a group of Saudi-
backed charities in northern Virginia, people familiar with the matter said. Investigators have
evidence that funds from the charities may have flowed to alleged terrorism supporters, according
to a search warrant.

The case could become awkward because the Bush administration is relying on the Saudi
government to help gain access to suspected senior al Qaeda members, including a son of terror
leader Osama bin Laden. Saudi officials recently sought Iran's permission to meet a prisoner
believed to be Saad bin Laden to verify his identity and possibly arrange a handover, according to
two U.S. officials.

The Bush administration also wants to apprehend Saef al Adel, another senior al Qaeda
operative whom U.S. officials believe Iran has detained. But Washington has refused to open
direct negotiations with Tehran. Saudis were reluctant to approach the Iranians about Saad bin
Laden, who has been stripped of his Saudi citizenship. U.S. officials say Riyadh has moved to
demonstrate its desire to cooperate against al Qaeda.

Saudi efforts to arrange a handover of the Iranian al Qaeda prisoners, which include as many as
eight Saudi nationals, haven't been successful. Iranian officials rejected Saudi proposals to
provide DNA to verify the identity of the man believed to be Saad bin Laden, and Tehran said it
would put some al Qaeda figures on trial. But Saudi officials hope to arrange a handover at least
of the younger Mr. bin Laden, according to U.S. officials briefed on the discussions. Saad bin
Laden, one of two sons of Osama bin Laden believed to be active in al Qaeda, has assumed a
larger leadership role in the organization since other operatives have been rounded up or killed, a
senior U.S. intelligence official said.

On Thursday, in a move that could further complicate Washington's relationship with Riyadh,
federal prosecutors in Virginia indicted Mr. Beheiri for unlawful procurement of naturalization,
false statements and making a false oath to win U.S. residency. The charges are denied by Mr.
Beheiri. His lawyer couldn't be reached for comment.

Mr. Beheiri founded BMI Real Estate Development Inc., a small real-estate investment firm that
operated in New Jersey and the Washington, D.C., area. Through BMI, Mr. Beheiri managed
about $2 million in investments for the U.S. branch of the International Islamic Relief
Organization, which is part of the Saudi government's primary vehicle for religious outreach, the
Muslim World League.

An IIRO branch in Pakistan was linked by the government there to al Qaeda operations, court
records show. According to a U.S. government cable, IIRO's Philippine branch served as a front
for al Qaeda operative Jamal Khalifa, Osama bin Laden's brother-in-law. The IIRO funds invested
with Mr. Beheiri disappeared during the late 1990s. The U.S. branch of IIRO, called the Islamic
Relief Organization, won a $2.1 million judgment against BMI. At that time, Mr. Beheiri was no
longer paying his lawyer and had been thought to have left the country.
raEMRI: Page 1 of 5

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Tire MffMJLB EAST MilNA RESEARCH HSSTITVTK

Special Dispatch Series - No. 526

June 20, 2003 No.526

An Egyptian Journalist on the Connection Between

Wahhabism and Terrorism

Following the bombings in Riyadh on May 12, 2003, the deputy editor of the
independent Egyptian weekly Roz AI-Yousef, Wael AI-Abrashi, who Is also
an expert on Sunni terrorist movements, wrote several articles on Saudi
Wahhabism and the development of Islamist terror. The following are excerpts
from AI-Abrashi's article:

A Wahhabi World View

In an article published on May 31, 2003 in Roz AI-Yousef, AI-Abrashi wrote: "A
Wahhabi Saudi sheikh warned young people not to speak English and not to try to
study it. Me swallowed his saliva, wet his lips, and screamed: This is the language
of the infidels, to the point where it has the word 'blease1 ['please'], which is
derived from iblis [Satan]. This is the language of the devil...'"

"Anyone can come and say that this sheikh does not represent all Wahhabis, but I
will reply that most of the Wahhabi sheikhs have in the past forbidden the study of
geography, English, philosophy, and drawing; besides that, what is the difference
between what this Wahhabi sheikh said and the Fatwa of [Sheikh] Bin Baz - the
[late] leader of Wahhabism - which stated that the planet Earth does not rotate?"

AI-Qa'ida - A Saudi Wahhabi Organization

"Wahhabism prohibits the woman from working, forbids her to drive a car, and
bans democracy, treating it as a religion in addition to the religion of Allah.
Wahhabism attributes great importance to the [outward] forms of Islam - growing
a beard, ankle-length garments for men, and the requirement to use toothpicks
instead of the satanic Western toothbrush. One Wahhabi leader. Sheikh bin
'Athimein, prohibited smoking, praying behind a smoker, shaving one's beard,
praying behind a clean-shaven man, and wearing European clothing because it is
polytheists' clothing..."

"I say that this Wahhabism is incapable of establishing a modern state and
incapable of spreading the values of tolerance that Islam has set out. On the
contrary, this Wahhabism leads, as we have seen, to the birth of extremist,
closed, and fanatical streams, that accuse others of heresy, abolish them, and
destroy them. The extremist religious groups have moved from the stage of Takfir
[1] to the stage of 'annihilation and destruction,1 in accordance with the strategy
of AI-Qa'ida - which Saudi authorities must admit is a local Saudi organization that
drew other organizations into it, and not the other way around. All the
organizations emerged from under the robe of Wahhabism."

'Saudi Arabia Helped Perpetrators of Terror Attacks in Egypt, Beginning

with Sadat's Assassination'

http://memri.org/bin/opener.cgi?Page=archives&ID=SP52603 8/6/03
Saudi Arabia, press releases, 08/13/03: statement on Al-Qaeda by Prince Bandar</font></... Page 1 of 1

Royal Embassy of Saudi Arabia

Information Office
PP ESS
RELEASES Washington, B.C.

CURRENT
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August 13, 2003
HOME

STATEMENTS STATEMENT ON AL-QAEDA BY PRINCE BANDAR

SPEECHES
[Washington DC] - Prince Bandar bin Sultan, Saudi Arabia's Ambassador
to the United States, made the following statement today.
"Saudi Arabia has recently broken up Al-Qaeda cells that were planning
further attacks against the Kingdom and other targets. Al-Qaeda
continues to seek to terrorize us, but they will not succeed. Our recent
efforts have been extremely successful in rounding up scores of Al-
Qaeda suspects. But we will not stop until this evil cult is uprooted and
destroyed."

- end -

http://www.saudiembassy.net/press_release/releases/03-PR-0813-Bandar-Alqaeda.htm 8/15/03
Arab News Page 1 of 2

The Middle East's Leading English Language Daily

Friday, 15, August, 2003 (17, Jumada ath-Thani, 1424)

PrintPage |
Sympathizers Are Terrorists Too: Abdullah
P.K. Abdul Ghafour • Arab News Staff —

JEDDAH, 15 August 2003 — Crown Prince Abdullah, deputy premier and commander of the
National Guard, yesterday vowed Saudi Arabia would triumph over evil in its war against terror.

In an address to the nation, Prince Abdullah urged Saudis to give their full cooperation to the
Kingdom-wide crackdown on militants, and warned that sitting on the fence was not an option.

"In the decisive battle between the powers of good and evil, there is no place for neutrality and no
room for stragglers. There is only one path open to honorable believers, which is to stand shoulder to
shoulder against the corrupt aggressors in the holiest places on Earth — Makkah and Madinah," the
crown prince said.

Prince Abdullah warned the public against harboring suspected terrorists. "Those who protect or
even just sympathize with terrorists are themselves terrorists, and they will receive their just
punishment," the Saudi Press Agency quoted him as saying.

"I am calling on every citizen to be a pillar of support to security officers, and to be the eyes, ears and
hands of security officers," he said, and declared the Kingdom would emerge victorious in its war on
terrorism.

Prince Abdullah's comments followed a major gunbattle on Tuesday between Saudi security forces
and suspected militants, the second clash in three days. Three policemen were killed and a militant
and two policemen were injured in the Shootout in Riyadh's Al-Suwaidi district.

Prince Abdullah called the security officers who died in the confrontation with militants "martyrs." He
said the state would take care of their families and children.

"Without your sacrifices, the terrorists would not have been defeated," the crown prince said in his
speech in which he hailed the bravery displayed by Saudi security forces in the battle against
militants.

"This steadfast state will never forget the martyrs who died in defense of their faith and their nation. It
will never forget the heroes injured on duty and the orphans whose fathers died in the battle of right
against falsehood," he said.

The Kingdom has stepped up its campaign against suspected militants following the triple suicide
bombings at housing compounds in Riyadh on May 12 when 35 people, including nine terrorists,
were killed.

On Wednesday, Washington issued a new travel warning for Saudi Arabia, saying it had credible
information of threats against American and Western interests, including civil aviation. Britain also
said it had intelligence on security threats to British aviation interests in the Kingdom.

The UK said it believed the gunmen in Sunday's battle might have been planning attacks on British
interests. But Interior Minister Prince Naif denied the British report.

http://www.arabnews.com/services/print/print.asp?artid=30345&d=l 5&m=8&y=2003&hl=S... 8/15/03

August 13, 2003

Professor Richard Betts

Leo A. Shifrin Professor of War and Peace Studies
Political Science Department
Columbia University
420 West 118th Street
New York, NY 10027

Dear Professor Betts:

The National Commission on Terrorist Attacks Upon the United States is

directed by statute to investigate the facts and circumstances surrounding the
September 11, 2001 terrorist attacks. This includes the nation's preparedness
for, and immediate response to, those attacks, as well as to evaluate the
lessons learned and to make recommendations for preventing future attacks.
As part of its investigation, the Commission hereby requests to interview you
on issues relating to the following general topics: (1) the concept of surprise
attack, and the conduct of warning within the U.S. Government; (2) the
mission, organizational structure, and management of the U.S. Intelligence
Community; and (3) analysis and collection of intelligence information for
counterterrorism purposes. The Commission does not anticipate that
classified information will be discussed at this interview.

Mr. Gordon Lederman, a member of the Commission's professional staff, will

conduct the interview. The Commission would like to conduct your interview
on August 19,2003 at 9:00 a.m. at your office in New York City. At least two
members of the Commission's staff will attend your interview. Please call
Mr. Lederman's assistant, Ms. Melissa Coffey, at (202) 331-4080 as soon as
possible to raise any other questions you may have.

Thank you very much in advance for your time and for your cooperation with
the Commission in this important matter.

Sincerely,

Philip Zelikow
Executive Director
Council on Foreign Relations - www.cfr.org Page 1 of2

COUNCIL ON FOREIGN RELATIONS

i CLICK TO PRINT

Op-Ed

U.S. Faces Dilemma on Saudi Policy

By Michael Mandelbaum

Newsday, July 30, 2003

The 28 pages the White House deleted from the 850-page report Congress released
last week on the terrorist attacks of Sept. 11, 2001, illustrate the most acute
dilemma confronting American foreign policy: what to do about Saudi Arabia. None of
the choices is entirely satisfactory.

According to press accounts, the report's missing pages describe support provided by
officials of the Saudi Arabian government to several of the hijackers of the airplanes
that crashed into the World Trade Center and the Pentagon. Critics have charged that
the Bush administration has suppressed this section of the report out of fear that, in
view of its close ties with the Saudi royal family, the administration would suffer
embarrassment and political damage from revealing it.

President George W. Bush met yesterday with Saudi Foreign Minister Saud al-Faisal,
but he refused to declassify the 28-page section - citing the need to protect
intelligence sources.

In truth, every American administration since that of Franklin D. Roosevelt has

maintained close ties with the Saudi rulers, and for a single, simple reason: oil. The
Saudi kingdom contains an estimated 25 percent of the world's easily accessible
reserves of the petroleum that the American economy - and the economies of all
industrialized countries - need to function. For six decades, the United States has
maintained a bargain with the Saudi rulers: support for their regime in exchange for
access to the oil they control.

But the rule of the Saudi royal family rests on another, internal bargain. The regime
has embraced as its official ideology a radical form of Islam known as Wahhabism,
which preaches intolerance for, indeed hatred of, all others - Muslim and non-Muslim
alike - who do not subscribe to its precepts. It is as if, says the eminent historian of
the Mideast Bernard Lewis, the U.S. government were promoting the ideas of the Ku
Klux Klan.

The Wahhabi ideology pervades Saudi society. Both Saudi officials and private
citizens have used the kingdom's oil wealth to promote Wahhabism all over the world.
They sponsored the schools that taught the leaders of the Taliban regime in
Afghanistan, which welcomed the al-Qaida terrorist network on Afghan territory
before being ousted by the United States in 2001, and funded mosques in Western
Europe where al-Qaida operatives were recruited. Osama bin Laden and the 19
hijackers of Sept. 11 professed to be inspired by Wahhabi teachings.

So the regime that the United States has faithfully supported presides over a society
and sponsors organizations that produce anti-American terrorists, which creates a

http://www.cfr.org/publication_print.php?id=6178.xml&content= 8/22/03
Council on Foreign Relations - www.cfr.org Page 2 of 2

dilemma for American policy makers.

Opposing the Saudi regime might lead to its replacement by one even more
unfriendly to the United States. But continuing support for the rulers in Riyadh while
ignoring their official ideology, as in the past, risks allowing global terrorism to
flourish. In response to this dilemma, three distinct courses of action are available.

One involves reform in the Saudi kingdom. Some Saudi officials have expressed a
commitment to reducing the power of the Wahhabi clerics, changing the educational
curriculum and opening the political system to wider participation. American officials
hope that if democracy is established in neighboring Iraq this will, by example, move
other Arab countries in the direction of greater social tolerance and political
openness.

But the benign effects of a new Iraq will be felt slowly and gradually, if at all. And
Saudi rulers have powerful incentives to oppose serious change because it could
dilute their power and call into question their practice of diverting much of the
revenue from the kingdom's oil to their personal use.

A second option is to muddle through, hoping that an unreformed Saudi Arabia can
nonetheless keep under control the bin Ladens that its society and school system
produce. This is the administration's preferred option, and its decision to remove
American troops from Saudi territory is designed to eliminate a major source of
Wahhabi-inspired anger at the United States. If this approach fails, a third possibility
is likely to receive serious consideration.

If the world cannot live without Saudi oil but concludes that it also cannot live with
the current Saudi regime, it may decide to separate the two, putting the Saudi oil
fields under some sort of international control. They might be administered by the
United Nations, with the proceeds going to the world's poorest countries rather than
to the Saudi ruling family. This would cut off the funding for terrorism that, until now,
has emanated from Saudi Arabia. It would represent a sharp departure from existing
international rules and procedures. But if Saudi-funded terror continues, proposals of
this kind will rise to the top of the international agenda.

Michael Mandelbaum, author of "The Ideas That Conquered the World," is a senior
fellow at the Council on Foreign Relations and a professor of American foreign policy
at the Johns Hopkins School of Advanced International Studies.

http://www.cfr.org/publication_print.php?id=6178.xml&content= 8/22/03
WSJ.com - Saudis Monitor Key Bank Accounts For Terror Funding at U.S. Request Page 1 of 2

THE WALL STREET JOIMAL. O N L I N £'

February 6,2002

AFTERMATH OF TERROR

FROM THE ARCHIVES: February 6, 2002 CRACKDOWN

• Saudis Finally Move to Crack
Monitor KeV Bank ACCOUntS Down on Alleged Terror Funds3
02/04/02
For Terror Funding at U.S. Request
By JAMES M. DORSEY
Staff Reporter of THE WALL STREET JOURNAL

RIYADH, Saudi Arabia -- The Saudi Arabian Monetary Authority, the kingdom's central bank, is monitoring at the request of U.S. law-enforcement
agencies bank accounts associated with some of the country's most prominent businessmen in a bid to prevent them from being used wittingly or
unwittingly for the funneling of funds to terrorist organizations, according to U.S. officials and Saudis familiar with the issue.

The accounts ~ belonging to Al Raj hi Banking & Investment Corp., headed by Saleh Abdulaziz al Rajhi; Al Rajhi Commercial Foreign
Exchange, which isn't connected to Al Rajhi Banking; Islamic banking conglomerate Dalian Al Baraka Group, with $7 billion in assets chaired by
Sheik Saleh Kamel; the Bin Mahfouz family, separate members of which own National Commercial Bank, Saudi Arabia's largest bank, and the Saudi
Economic Development Co.; and the Abdullatif Jamil Group of companies — are among 150 accounts being monitored by SAM A, the Saudis and
Riyadh-based U.S. officials said.

,-, t „ ... ., , ,— 1 The U.S. officials said the names of the accounts were presented by the U.S. to Saudi Arabia
See full coverage
a
of the Aftermath of Terror 1 . • the
since ., cSept.
, ,,11 .terrorist
• . attacks
,,. , .in .,theTU.S.
I C , T-, .Yf four„Saudi
They said ,. chanties
, ... and, eight
• , . , businesses
•
were also among 140 world-wide names given to Saudi Arabia last month.

The U.S. officials said the U.S. had agreed not to publish the names of Saudi institutions and individuals provided Saudi authorities took appropriate
action. Many of the Saudi accounts on the U.S. list belong to legitimate entities and businessmen who may in the past have had an association with
institutions suspected of links to terrorism, the officials said. The officials said similar agreements had been reached with authorities in Kuwait and the
United Arab Emirates. "This arrangement sends out a warning to people," one U.S. official said.

Since Sept. 11 the U.S. government and several multinational bodies including the United Nations have published a series of lists of groups and
individuals accused of involvement in terrorism. In many cases, those on the list have had their assets frozen. The latest Saudi accounts aren't on any
official lists.

SAMA couldn't be reached for comment. In a recent report to the U.N. about combating terrorism, however, the Saudi government said, "SAMA sent
a circular to all Saudi banks to uncover whether those listed in suspect lists have any real connection with terrorism."

Saudi Arabia has frozen the accounts of several businessmen suspected by the U.S. of having funded terrorist organizations, including those of Jidda-
based Yassin al Qadi. Among the Bin Mahfouz family, Abdulrahman bin Mahfouz was a board member of Muwafaq, a defunct Jersey-registered
I charity headed by Mr. Qadi. Mr. Qadi is accused by the U.S. as being associated with terrorism.
L_—
^—
Mr. Qadi has challenged the freezing of his assets in a British court as well as at the European Court of Justice.

Speaking in a telephone interview, Mr. Mahfouz denied that SAMA was monitoring accounts related to his family or business. "I don't believe that our
names are among the 150. None of our accounts are under SAMA's supervision."

He said authorities in Britain had, however, recently frozen accounts of the International Development Fund, a British-based charity operated by
several of his uncles. A lawyer for Mr. Mahfouz said that he and his father, Khaled bin Mahfouz, had no financial interest in IDF or Saudi Economic
Development, known as SEDCO, the company owned by Khaled bin Mahfouz's four brothers.

In a statement, the four Bin Mahfouz brothers said, "SEDCO, like the IDF, condemns utterly any terrorist activity. It has never funded terrorist
organizations or terrorists, either through managers or employees."

http://online.wsj.com/article_print/0,,SB1012954646952558840,OO.html 9/19/03
17) The Saudi-Al Qaeda Connection
By Michael Isikoff and Mark Hosenball
Newsweek

A cache of documents purportedly recovered from the files of ex-Taliban chief Mullah Omar in
Afghanistan provides potentially damning new evidence of a secretive money trail through which
millions of dollar in funds from Saudi Arabia allegedly flowed to Al Qaeda terrorists in the late
1990s.

ONE OF the documents, obtained by NEWSWEEK, appears to be a direct order from Mullah
Omar to the Afghan ambassador in Pakistan to turn over $2 million "in Saudi Arabia aids" to Jon
Juma Namangani, a charismatic former Soviet paratrooper who became one of the most feared
terrorists in Central Asia.
Namangani--who headed the Islamic Movement of Uzbekistan, which the U.S. State Department
designated a terrorist group-was once a close associate of Osama bin Laden until he was killed
in a U.S. bombing raid nearly two years ago.

"Pay $2 million from Saudi Arabia aids to respected brother Jon Juma Namagani," reads the
directive signed "M.M. Omar" on the stationary of the Islamic Emirate of Afghanistan. The order,
written in Pashto, is addressed to the Afghan Embassy in Islamabad and is dated Nov. 21, 1999.
(The letter bears the Islamic equivalent date of 12/8/1420.)

The letter is among hundreds of pages of documents that was purportedly recovered from Mullah
Omar's official files after the U.S. invasion of Afghanistan in the fall of 2001. Some 39 pages of
these documents were recently turned over by sympathetic Afghan sources to agents of Ron
Motley, the lead U.S. lawyer in a massive $1 trillion lawsuit against top Saudi government
officials, charities and leading businessmen filed on behalf of the families of victims of the
September 11 terror attacks.

The key phrase in the document--"Saudi Arabia aids"-is cryptic, and Motley concedes he doesn't
know whether it refers to funds that came from the Saudi government, Islamic charities based in
Saudi Arabia or some other Saudi-based source. Still, he called the documents among the most
significant yet that have turned up in a nearly yearlong effort by his legal team to establish Saudi
complicity in the financing of Al Qaeda.

"This shows direct payments made to Al Qaeda from Saudi funds," said Motley. "Everybody talks
about the smoking gun. Well, we've found the pistol on the side of the road. Now all we have to
do is find the smoking bullet."

English versions of other documents, prepared by translators working for Motley, appear to show
the Taliban leader ordering similar releases of millions of dollars in funds "from the aids of Saudi
Arabia, brotherly country," as well as the "the brotherly nation" of the United Arab Emirates. Other
orders refer to "Wafa aids" and "the aids of AI-Rasheed"~two apparent references to Islamic
charities that have been linked by U.S. officials to the financing of terrorism. The other documents
direct that the payments go to more obscure figures with Arabic names who could not be
immediately identified. But Motley contends that he was able to identify one of the recipients,
Jaladin Haqani, as a former Taliban commander assigned to protect Al Qaeda forces, and that he
believes the other recipients were aligned with either the Taliban or Al Qaeda.

William Wechsler, a former National Security Council official who specialized in terror financing
during the Clinton administration, said the 1999 Mullah Omar directive to release funds to
 Saudi-Owned Wahhabi Mosques in America;
An Entrenched Support Network of Terror

Overview
"Before September 11, al-Mihdhar, al-Hazmi, Hanjour, Atta, alShehhi, and possibly other hijackers
attended at least seven mosques in California, Florida, Virginia, Arizona, and Maryland, some of which
were also attended by persons of interest to the FBI."
- Report of the Joint Inquiry into the Terrorist Attacks of September 11, 2001

To follow is an analysis of a number of Saudi-owned and financed mosques in America that have significant
links to the 9/11 hijackers, other known al Qaeda terrorist operatives and financiers, and Burnett defendant
Islamic charities. This memo illustrates a deeply-rooted web of Wahhabi activities at a number of mosques
nationwide that are supported by the Saudi government financed Islamic Society of North America (ISNA),
and its subsidiary, the North American Islamic Trust (NAIT).

Of particular interest for our purposes is the revelation that ISNA and NAIT are directly connected to Yaqub
Mirza and a number of Islamic mutual investment funds based in the United States worth more than $60
million in assets. NAIT is also connected to the Quranic Literacy Institute, Global Relief Foundation,
and Benevolence International.

hi addition, I believe this information illustrates a strong pattern of hub-and-spoke relationships between
NAIT and increasingly extremist Wahhabist mosques that have supported al-Qaeda related fundraising,
recruiting, and logistical activities since at least the early 1990s.

At this point in time, there has not been a publicly acknowledged Government investigation of NAIT's
activities, nor has there been a public report completed of the organization's contributions and receipts.

The information included has been derived from various open news and web-based sources. A subsequent
search of our internal collections will be conducted to learn of other international al Qaeda connections with
these mosques and organizations.

ISNA & NAIT: A "Clearinghouse for Wahhabism"

Background
According to the St. Petersburg Times, "The main clearinghouse for Wahhabism in the United States is a
group not known to be under investigation, the Islamic Society of North America. ISNA is subsidized by
the Saudi government."
(SOURCE: Mary Jacoby, "Saudi form of Islam Wars with Moderates, " St. Petersburg Times, March 11,
2003.)

In 1981, the Islamic Society of North America was established by affiliates of the Muslim Student
Association as an umbrella organization to coordinate and promote Muslim civic activities nationwide.
(SOURCE: Jane Lampman, "Islam on Campus, " Christian Science Monitor, November 8, 2001)

The North American Trust, an ISNA subsidiary, owns about 27 percent of the estimated 1,200 mosques in
the United States, or at least 250 out of some 1,200 nationwide, states a report by the Council on American-
Islamic Relations, entitled "The Mosque in America." Significantly, NAIT holds title to a number of
mosques and Islamic centers with direct links to the hijackers and other key al Qaeda operatives. These
WSTEom - Terror Investigators Followed Funds to a Saudi Businessman Page 1 of 5

WALL STREET JOURNAL.

ONLINE'

November 26, 2002

FROM THE ARCHIVES: November 26, 2002 SAUDI FINANCING

• Saudi Princess's Gift Strains U.S.
Terror Investigators Followed Ties to Persian Gulf Ally4
11/25/02
Funds to a Saudi Businessman • Sept. 11 Suit to Add Defendants,
Including Saudi Minister. Bank5
Mr. Qadi's Deals Are Under U.S. Scrutiny; 11/22/02
He Denies Charges, but Case Is Illuminating • O'Neill Promises U.S. Caution in
Citing Saudi, Terror Links6
03/07/02
By GLENN R. SIMPSON
Staff Reporter of THE WALL STREET JOURNAL • Saudis Monitor Key Bank Accounts
for Terror Funding7
02/06/02
Yassin Qadi is a tall, bearded businessman whose financial interests in the 1990s spanned the globe from
Jeddah to Malaysia to the suburbs of Washington. In Saudi Arabia, he is known as pious, wealthy and mild- • Saudi Businessman Qadi Petitions
mannered. In the U.S., he is seen by government investigators as a leading member of a global network that Court to Release Assets8
finances both Islamic good works and terrorism. 12/21/01
• Bush's Financial War on Terror
One month after the Sept. 11 attacks, the U.S. Treasury labeled Mr. Qadi, who is 47 years old, a "specially Includes Strikes at Islamic Charities9
designated global terrorist" and froze his assets in the U.S. and Europe. The government says that Mr. Qadi 09/25/01
and organizations he controls move money from Saudi sources through numerous businesses and charities
world-wide. Some of the money ends up in the hands of terrorists, the U.S. says. Mr. Qadi declines to
comment, but through his lawyers, he denies ever knowingly doing business with terrorists or financing
them. He hasn't been prosecuted, and his attorneys are trying to persuade the Treasury of his innocence.

Three Cases

Pieced together from U.S. court filings and interviews, some of Mr. Qadi's financial activities and relationships offer tentative answers to two key
questions: How does money get from wealthy Saudis and Saudi charities to extremist groups around the world? And why does some of it move
through the U.S.?

In one case, Mr. Qadi gave $820,000 to a Chicago charity that subsequently gave funds to a man
MORE COVERAGE convicted in Israel of helping buy weapons for Hamas, the Palestinian group known for
Muslim FBI Agent Is Accused of Not Taping sponsoring terror attacks against Israel. In a second instance, a Saudi-backed charity in Virginia
Terror Suspects1 invested $2.1 million in a real-estate company that shared offices with a New Jersey firm owned
by Mr. Qadi — and the money disappeared. U.S. investigators say they have evidence suggesting
For continuing coverage, see War on that the real-estate company, in which Mr. Qadi formerly was an investor, may later have
provided funds for terrorism abroad.
Terror2.

In a third case, the U.S. arm of a Malaysian company of which Mr. Qadi was a director — along
with that same Saudi-backed charity in Virginia - invested in a Chicago company that was stockpiling dangerous chemicals. The Chicago company
was headed by a man whom U.S. officials suspect of being a Hamas associate.

Preserving Appearances

Some U.S. officials say all of this complexity is designed to shield wealthy Saudis from direct association with extremist groups. "It looked bad for
people in Saudi Arabia to be writing checks from a bank in Riyadh to Hamas," says Mark Flessner, a former federal prosecutor. He spent years
tracking Mr. Qadi and suspected terrorist cells in Chicago as part of a Justice Department probe in the late 1990s known as Operation Vulgar Betrayal.
Sponsors of extremist groups "were able to hide their Saudi financial sources by bringing funds into and through the U.S.," Mr. Flessner says.JThe
investigation ended without indictments in 1999 but recently has been restarted.

The Saudi money moves through the U.S. for the same reasons that attract other global investors, Mr. Flessner says: American financial institutions

http://online.wsj.com/article_print/0,,SB1038261957100299628,OO.html 9/19/03
List of Early al Qaeda Donors Points to Saudi Elite Page 1 of 3

List of Early al Qaeda Donors Points to Saudi Elite, Charities

By GLENN R. SIMPSON
Staff Reporter of THE WALL STREET JOURNAL

(See Corrections & Amplifications item below.)

WASHINGTON - A cache of al Qaeda documents seized last year by U.S. agents in Bosnia
identifies some of Saudi Arabia's richest and most influential families as among the first
financial supporters of Osama bin Laden, and shows how al Qaeda used charitable arms of
the Saudi government.

An account of the roots of al Qaeda found on a computer used by a suspected al Qaeda front
group contains a 1988 memorandum listing 20 Saudi financial backers of Mr. bin Laden - "the
Golden Chain," as the bin Laden organization called it. The list includes the families of three
billionaire Saudi banking magnates, several top industrialists and at least one former
government minister.

The Golden Chain list, which doesn't indicate the size of the donations, was drawn up at a time
when supporting the Afghan revolt against Soviet invaders -- Mr. bin Laden's cause at the time
- was a top U.S. foreign-policy objective, as well as a Saudi national cause with deep patriotic
and religious overtones. The list doesn't show any continuing support for al Qaeda after the
organization began targeting Americans, but a number of the Saudis on it have been under
scrutiny by U.S. officials as to whether they have supported terrorism in recent years.

U.S.-Saudi Ties

Disclosure of the documents ~ hundreds of pages of internal correspondence over more than
a decade between al Qaeda leaders, as well as the list -- comes at atfawkward moment for
the Bush administration. As the U.S. approaches war with Iraq, it is relying on Saudi Arabian
support, particularly use of Prince Sultan Air Base, near the Saudi capital of Riyadh.

THE GOLDEN CHAIN

See the list of donors originally filed under seal in U.S. District Court for the Northern District of Illinois (United S
Enaam Arnout.) The list was seized from the Benevolence International Foundation, an alleged al Qaeda front. Ac
filing, "BIF possessed a handwritten draft list of people referred to within Al Qaeda as the 'Golden Chain,' wealthy
mujahedeen efforts. At the top of the list is a Koranic verse stating 'And spend for God's cause.' The list contains 1
after each name is a parenthetical, likely indicating the person who received the money from the specified donor."

the Justice Department. It names billionaire bankers Saleh Kamel and Khalid bin Mahfouz, as
well as the AI-Rajhi family, another banking family, and Mr. bin Laden's own brothers. A
number of the Saudis on the list, including the bin Mahfouz, AI-Rajhhand Kamel families, are
among those under U.S. scrutiny. r¥v

http://decorpnet.com/papa_6224/list_of_early_al_qaeda_donors_po.htm 6/30/03
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Before Sept. 11, he says, the case most likely would have been worked as a false-ID case and
ended there. Instead, dozens of law-enforcement agencies were involved and hundreds of
subpoenas were served. "This case was very high priority," says Featherston.

Still, investigators have been unable to answer questions such as: Where was the sodium-
cyanide bomb destined? And were the weapons being prepared for a group or sold individually?
Featherston says the investigation is ongoing and won't end until these questions are answered.

Experts say the case is important not only because of what it says about increased government
cooperation, but also because it shows how serious a threat the, country faces from within. "The
lesson in the Krar case is that we have to always be concerned about domestic terrorism. It would
be a terrible mistake to believe that terrorism always come«/from outside," says Mark Potok at the
Southern Poverty Law Center in Montgomery, Ala.

The fact is, the number of domestic terrorist acts in/fhe past five years far outweighs the number
of international acts, says Mark Pitcavage of the/act-finding department at the Anti-Defamation
League. "We do have home-grown hate in the/United States, people who are just as ill-disposed
to the American government as any international terrorist group," he says.

Levitas estimates that there are approxh/nately 25,000 right-wing extremist members and activists
and some 250,000 sympathizers. The/Southern Poverty Law Center counted 708 hate groups in
2002.

While Mr. Pitcavage was surprise^ the Krar case did not receive more attention, "It is a fact that a
lot of stories involving domesti^extremists get undercovered," he says. He points to a case he
calls one of "the major terrorist plots of the 1990s" in which militia from around the country
converged in central Texas/allegedly to attack a military base. They were arrested at a
campground near Fort Hood on the morning of July 4, 1997, with a large collection of weapons
and explosives. "There was virtually no media coverage of that incident either," says Pitcavage.

Featherston speculates that the Krar case got little attention because the arrests were made just
after the war began in Iraq. "Excuse me, a chemical weapon was found in the home state of
George Bush," says Levitas. "I'm not saying the Justice Department deliberately decided to
downplay the story because they thought it might be embarrassing to the US government if
weapons of mass destruction were found in America before they were found in Iraq. But I am
saying it was a mistake not to give this higher profile."

For his part, Krar has remained silent. He will most likely be sentenced sometime in February,
and could receive up to life in prison. His attorney, Tonda Curry, says the US government has no
reason to be afraid of him. "It looks a whole lot worse than it is. He had a lot of things that most
people would never have any desire to have, but much of what he had was perfectly legal."

10. Saudi Funds Tied To Extremism in Europe

DAVID CRAWFORD and IAN JOHNSON
Wall Street Journal

For years, Saudi Arabian support for Europe's burgeoning Muslim population was seen as little
more than benign help for sometimes beleaguered immigrants. In a remarkable change, Europe's
police and intelligence forces have revised their view, identifying Saudi money and theology as a
cause for growing radicalism and support for terrorism.

In recent months, countries across the continent have launched inquiries into Saudi influence on
their Muslim communities, which in some countries account for more than 10% of the population
and are growing rapidly due to immigration. The investigations focus especially on Saudi-backed

PRESS CLIPS FOR DECEMBER 30, 2003 13

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ftnwite Stiff "...Are you among those who are called to spend in the Cause of Allah,
yet among you are some who are niggardly.
GwstBoak And whoever is niggardly, it is only at the expense of his own self.
But Allah is Rich (free of all needs), and you (mankind) are poor.
And if you turn away (from Islam and the obedience to Allah),
Contact us He will exchange you for some other people and they will not be your likes "
[Surah 47 Muhammad: 38]
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AL HARAMAIN
and sadaqah to the poor. Doctor's Commiti
FOUNDATION 88001/6
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(General Account)
expiatory gifts, oaths, food provision.

General charity, zakaat, 'aqeeqah, oath ex

Asian Commitee 88002/4
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Allah The Mighty and Majestic says in Soorah AI-Baqarah:

If you disclose your sadaqaat (alms-giving) it is well, but if you conceal it and give
it to the poor that is better for you. Allah will forgive you some of your sins. And
ftwBodb Allah is knows all that you do. Not upon you (Muhammad) is their guidance, but
Allah guides whom He wills. And whatever you spend in good, it is for yourselves,
fimrite Sit€f when you spend in good, it will be repaid to you in full and you shall not be
wronged.
Guesl Book AI-Baqarah 271 - 272

Contact m Abu Hurairah (radiallahu v anhu) reported that the Prophet (sallallahu 'alaihi wa sallam) said:
Every day two angels come down and one of them says,
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All praise and thanks is due to Allah and may salaat and salaam be upon our Prophe
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Indeed eemaan (faith) increases and becomes stronger with obedience and righteous deec
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(sadaqah) and getting close to Allah by the best of deeds. Islamic society has qualities an
peculiarities which raise it above all other human societies and these outstanding qualitie
stem from the divine shariah through which Allah has ennobled this ummah by making it th
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who possess the above mentioned characteristics and adhere to those attributes.

Among the most outstanding of the characteristics of Muslim society is mutual responsibilit
and human understanding as well as continuity, goodness, cohesion, connectedness an
where equality prevails along with kindness. Individuals are tightly connected throug
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piety".

The Most Important Aims of the Foundation

To establish the correct beliefs (al'aqeedah as-saheehah) in the hearts of the Muslims as
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AL haramain site
1 1
Africa Committee
Europe Committee
Da'wah and Sponsorships
Committee
Americas Committee
Zakaat Committee
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Masjids Committee
Seasonal Projects
Committee
Profitable Business
Domestic Zakaat
Doctors' Committee
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Single Body Project
Palestine
Zakaatul-Fitr Project
"Inform of me even if one
verse..."
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Endowment
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1 orphans and callers
1 General charity, zakaat, 'aqeeqah, book pr
88003/2
da'wah, sponsorship of institutions, da'wa
projects, clinics, sponsorships of orphans ;
callers, famine relief, women's hijab
General charity, zakaat, book printing, da'i
88004/0 sponsorship^ of callers, Islamic hijaab, orpt
sponsorship
Orphan sponsorships/ Islamic callers,
handicapped, clothing for poor families, Eii
for orphans, book printing, da'wah pample
88005/7 gifts, Qur'aans, da'wah, spread of Islamic
knowledge, sponsorship of imams and mu;
sponsorship of memorizers of Qur'aan, dis
of saheeh AI-Bukhaari
North and South American book printing, I
88006/5
education and introducing non-Muslims to
88007/3 Zakaat outside the Kingdom of Saudi Arabi
88009/9 Continous endowment going to all charitat
88014/9 Building of masjids and Islamic centers
Feeding fast breakers, sacrifices, winter bl
88011/5 Islamic courses, da'wah outings, winter pr
etc. ,{fe,
1) MasaajiW 2) Orphans and Poor 3)Contin
Charity 4}Oa'ee sponsorship 5)Qur'aanic c
88008/1
Da'wah messages in two languages 7) Inb
Daw'ah in the West 8) Relief work, medicii
providing water 9) Summer programs 10)
Charitable projects of all types
88012/3 General charity inside KSA
88013/1
Medial assistance, equipment, supplies,
instruments, health education
88010/7
Charity to foundation projects made on bel
fathers who have died leaving families beh
88015/6
For productiion and distribution of Islamic
tapes
Single Body Project in Indonesia includes
88017/2
residences for orphans and the indigent, la
masjid, educational classes, clinic, vocatioi
training
88016/4 For needy Palestinians
88018/0
For purchasing Zakaatul-Fitr and feeding t
fasters ^
Printing /pnd translation of the meaning of
88019/8 Noble Qur'aan and Islamic books for West
readers
88020/7
Building project from which income is use<
support charity projects
7/11/03
 Saudis
Spread Hate
Speech
in U.S.
A Study
Executive Summary
by
A dosereadingof Saudi-funded textbooks and other publications
AliAI-Ahmed
that no nation should be promoting, least of all a nation that calls
& itself Americas ally in the war against terrorism.
Stephen Schwartz The materials examinedfcffthe purposes of this study include anti-

(non-Vfahhabi) Muslims, The materials include also the following

incitement: **Ilie unbelievers, idolaters and others like them must
be hated and despised."
TJiesepnxlucts ate distributed by Saudi officials — including senior
diplomats at the Saudi Embassy - as well as by Saudi-funded
orgariizauonssuchasthe\)(<brkLAssernbfyo
and the Institute for Islamk and AiabkStu^
groups that take full advantage of Americans Hrst Amendment
freedoms.

* **
Saudi officials disseminate hate literature openly in the United States,
through such entities as the Institute for Islamic and Arabic Sciences in
America (IIASA), in Fairfax, Va. and the World Assembly of Muslim Youth
(WAMY), in Alexandria, Va. Publications they distribute show that official
Saudi representatives in the United States promote the belief that Jews are
the source of all conflicts in the world, that Shi'a Muslims are part of a
Jewish conspiracy, and that Muslims, Jews, and Christians cannot live
together.
Examples:
The book Deen al-Haqq (The True Religion) , authored in Arabic
by Abdul-Rahman Ben Hamad Al-Omer. Printed by the Ministry
of Islamic Affairs and Endowments, Riyadh, and paid for by the
foundation of Ibrahim ibn Abdul-Aziz Al-Brahim, King
The Foundation for Fahd's father-in-law. Distributed by in the U.S. by IIASA
the Defense of Democracies
and WAMY:
 79 of 295 DOCUMENTS

Copyright 2002 National Review

National Review

December 5, 2002, Thursday

SECTION: National Review Online; Guest Comment

LENGTH: 546 words

HEADLINE: The Roots of Terror

BYLINE: By Jonathan Levin; Jonathan Levin is a terrorism analyst with the Investigative Project, a Washington, D.C.-
based think tank tracking terrorists and their supporters around the world.

BODY:
The well-oiled Saudi PR machine chugged into action this week with foreign-policy adviser Adel al-Jubeir at the
helm. "For too long Saudi Arabia has been wrongly accused of being uncooperative or ineffective in combating
terrorism," al-Jubeir proclaimed to an audience of newsmen at the Saudi embassy, "the unfounded charges against Saudi
Arabia have gotten out of control."
Al-Jubeir went on to list the Saudis' successful strikes against terrorism: arresting the mastermind of 2000's USS
Cole bombing, Abd al-Rahim al-Nashiri; freezing nearly $5.6 million in terrorist assets; freezing Wael Hamza
Julaidan's assets. The finishing touch, Al-Jubeir said, is the enactment of stringent measures by which the Saudi
government can track the finances of charities that have in the past funded al Qaeda. Al-Jubeir then pointed out that the
new accounting measures are merely precautionary, telling reporters, "We have not found a direct link between charity
groups and terrorism."
Of course, Saudi-based charities have raised millions (if not billions) of dollars for terrorism. One Saudi charity, Al
Haramain Charitable Trust, has had it offices in Bosnia and Somalia declared Specially Designated Global Terrorist
(SDGT) entities. Another charity, the Rabita Trust, has been marked SPOT outright.
The World Assembly of Muslim Youth (WAMY) and International Islamic Relief Organization (IIRO) are two-of
Rabita Trust's sister organizations. The Wall Street Journal recently published an in-depth account of the tiesbetwegn
IIKD, Saudi al Qaeda financier YassitTapQadi andlhe 1998 African-embassy bombings. liRTJhas been lmkedlo~^
planned attacks in Pakistan, India, the PTulIppinesT-and-A-frtea:——
WAMY was founded in the United States by Osama bin Laden's brother, Abdullah. The short WAMY book
Islamic Views, printed by the Saudi government's Armed Forces Printing Press, contains passages such as, "[TJeach our
children to love taking revenge on the Jews and the oppressors, and teach them that our youngsters will liberate
Palestine and al-Quds when they go back to Islam and make Jihad for the sake of Allah."
The Saudi promise to cut offal Qaeda funding is a welcome development. What is troubling is, just as Al Jubeir is
announcing his government's new accounting practices, Saudi royals are donating to some of the worst offenders. The
weekly political magazine Ain al Yaqeen ("Heart of the Matter"), reppiteilonJSfovember 29 that Prince Abdul Maieed
ibn AbdujAziz recently headlined a joint WAMX/aLHaramain fundraiser mid gave a $4U,UOO donation. A couple
weeks later, Prince Mohammed ibn Fahd ibn Abdul Aziz spoke at a fundraiser for WAMY1, al-Haramain, and IIRO.
American public opinion is against the Saudis because of precisely these sorts of deceptions. Saudi minister of the
interior Prince Nayef Ibn Abd Al-Azizs told the Kuwaiti paper al-Siyaasa, "we [the Saudis] put big question marks and
ask who committed the events of September 11 and who benefited from the. Who benefited from events of 9/11? I think
 78 of 295 DOCUMENTS

Copyright 2002 Federal Information and News Dispatch, Inc.

Voice of America News

December 14, 2002

SECTION: ON THE LINE 1-01244

LENGTH: 3540 words

HEADLINE: WHO BANKROLLS TERROR?

TEXT:
THEME: UP, HOLD UNDER AND FADE
Host: Who bankrolls terror? Next, On the Line,
[music]
Host: Investigators in the United States are looking into whether money from the wife of the Saudi Ambassador to
the U-S ended up in the pockets of two of the terrorists who crashed a plane into the Pentagon on September 11 th,
2001. As first reported in Newsweek magazine, Princess Haifa Bint Faisal sent thousands of dollars in cashiers checks
to a Saudi woman who had asked for help paying medical bills. Instead, the woman gave the money to a friend whose
husband in turn gave some money, and other help, to two men who were part of the September 11th al-Qaida terrorist
attacks. The Saudi Embassy insists that the princess had no idea that the money she gave out of charity was put to other
uses. But the controversy has prompted new questions in Washington about whether money given to Saudi charities has
been diverted to finance terror. Joining me to talk about this issue, are Michael Isikoff, investigative correspondent at
Newsweek magazine; Matt Levitt, senior fellow at the Washington Institute for Near East Policy and Eleana Gordon,
policy director at the Foundation for the Defense of Democracies. Welcome, thanks for joining us today.
Michael Isikoff, you broke the story in Newsweek about these donations and where the money went, so why don't
you walk us through the story you reported.
Isikoff: Well, this really begins with investigations into the September 11th attack and, in particular, two of the
hijackers. Khalid Almihdhar and Nawaf Alhazmi were in San Diego — came into the country in January 2000 -- and it
turned out had a lot of help in San Diego from members of the Islamic community. In particular, one guy, named Omar
al-Bayoumi, a Saudi student in the United States who happened to have met them at the airport when they landed in L-
A, happened to have offered to assist them moving down to San Diego, drove them there, set them up in an apartment
next door to his, helped them pay the rent and then smoothed their way for entree into the Islamic community, including
getting some of his friends to help them get into flight school, get social security cards, drivers licenses. It turned out
that al-Bayoumi in turn was receiving, had an associate, Mr. [Osama] Basnan, another Saudi student in the United
States, who was receiving a fairly substantial assistance from the Saudi Embassy in Washington. In particular, Princess
Haifa, the wife of the Saudi ambassador, Prince Bandar, in the form of cashiers checks, totaling about a hundred-and-
thirty-thousand dollars over a four year period. Some of those cashiers checks that were sent to the wife of Basnan, were
given to the wife of Bayoumi and Bayoumi appeared to have gotten some of that money. The question investigators
wanted to know was, was Bayoumi and perhaps Basnan being subsidized for some purpose to either assist the hijackers
or keep an eye on them.
Host: And what do investigators think?
 the Media Page 1 of4

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Portrait of a Wahhabi
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By Stephen Schwartz
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June 30, 2003
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On Thursday, June 26,1 testified before the U.S. Senate Subcommittee on
Terrorism, Technology and Homeland Security, chaired by Sen. Jon Kyi (R-Ariz).
Iraq My topic was 'Wahhabism and Islam in the U.S." I outlined the outrageous
degree to which Saudi-funded Wahhabi extremists, who are supporters of
Jihadism
terrorism, have come to dominate Islam in the U.S. My testimony was not
Saudi Arabia & greeted with enthusiasm by James Zogby, the phony civil rights leader who
Wahhabism heads the "Arab American Institute." Zogby, a Lebanese Christian once known
Syria for his moderate camouflage on Israel, but now a shameless apologist for the
Saudis, immediately fired off a press release. He described me and my fellow
War on Terrorism witness, Alex Alexiev of the Center for Security Policy, with mangled syntax, as
more > >
"virulent anti-American Arab and Muslim critics whose writings and statements
display a consistently misinformed and hurtful tone. Schwartz denigrates
Search by Person American Muslims by describing Wahhabism as an 'extremist, puritanical and
May, Clifford D. violent movement,'" he alleged. In reality, it is Zogby who may be described with
perfect accuracy as a "virulent anti-American Arab." He demanded that his
Schwartz, Stephen supporters send e-mails to Sens. Kyi and Dianne Feinstein (D-Calif), protesting
Wpolsey, James against the very fact that the hearing was held. While this was taking place,
federal agents were poised to arrest six Muslim men in the Washington area and
more > > in Pennsylvania. Two of their codefendants were already in custody. Three of
them have fled to Saudi Arabia. They total 11, and are charged with conspiring
with a Wahhabi group based in Pakistan - Lashkar-i-Taiba or "Army of the
Subscribe Righteous" - to commit terrorism in Kashmir, Chechnya, and elsewhere.
to our ema il updates
Enter email address
The lead indictee, arrested early Friday, is a man named Randall Royer, who
I ~o calls himself by the Islamic name "Ismail." He's someone I know pretty well. But I
know some of his playmates even better. Royer used to operate a "blog," which
Donate to FDD O remains accessible on the net: ismailroyer.blogspot.com. Go to the page and
look in the right column and you will find me described as "Washington Bureau
Chief, The Forward," a position I have not held for almost two years. This, of
course, is his way of identifying me as Jewish. And if you hit the link at my name,
you go straight to the Nazi swill of Bill White, the compulsive liar from Silver
Spring, Md., writing in the depraved Pravda, organ of the red-brown Communazi
alliance. I first heard of Royer in January 2002, when I was working at the Voice
of America. He had called my successor at the Forward, and, identifying himself
as Randall, not Ismail, asked if he could talk to me about religion in Bosnia. The
Forward reporter passed the message on, and being the kind of free-speaking
person I am, I responded. But as soon as I e-mailed Randall Royer, what did I
get back? From an e-mail address in Bosnia, he falsely identified himself as
writing for beliefnet, a religious news website. He sent me a defamatory quote
from the notorious Saddamizer and admirer of Axis seditionists, Dennis "Justin"
Raimondo, proprietor of the antiwar.com website. Royer added a false

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Ill ihe Media Page 1 of3

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Saudi Dupes
By Stephen Schwartz
Search The New York Post
July 11, 2003
I o Website: http://www.nypost.com/postopinion/opedcolumnists/274.htm
Advanced Search
Adherents of the violently uncompromising Wahhabi sect, the state religion of
Search Topics
Saudi Arabia, are killing other Muslims overseas, and attacking coalition troops in
Iraq Iraq. On our side of the globe, bloodshed is blessedly limited, but a battle
continues, for the education and mobilization of the public.
Jihadism
Saudi Arabia &
On July 4, three Wahhabi terrorists killed 48 people and injured 50 more at a
Wahhabism
Shia mosque in Quetta, Pakistan. Pakistani President Pervez Musharraf and
Syria other high officials cautiously admitted they detected a foreign hand in the
atrocity.
War on Terrorism

more >_>. Pakistani Muslims living in America filled in the blanks. Agha Shaukat Jafri,
Search by Person spokesman for the Universal Muslim Association of America (the top U.S. Shia
community organization), said: "Every Pakistani Muslim knows the blame for
May, Clifford D. these dreadful crimes belongs in one place — the doorstep of the Saudi princes
Schwartz, Stephen and the Wahhabi bigots in Riyadh."
Woolsey, James
Top U.S. officials know it, too. Treasury Department General Counsel David
more > > Aufhauser recently described Saudi Arabia as "in many ways, the epicenter" for
funding of al Qaeda and other terrorists. And he pointed to the Wahhabi sect as
"a very important factor to be taken into account when discussing terrorist
Subscribe financing."
to our errai updates
Enter email address
Saudi spending to impose Wahhabism on global Islam, he noted, "is a
I ~o combustible compound when mixed with religious teachings in thousands of
madrasahs [Islamic schools] that condemn pluralism and mark nonbelievers as
Donate to FDD O enemies . . . It needs to be dealt with."

Pakistan's rulers are timid about directly confronting the Wahhabism menace, but
some of our own leaders are worse.

Aufhauser's comments came late last month, at Senate Judiciary Subcommittee

on Terrorism hearings on Wahhabi influence in American Islam. I was among
three others who testified.

Some senators clearly perceive the threat: Jon Kyi (R-Ariz.) called the hearings,
and Chuck Schumer (D-N.Y.) delivered a stirring challenge to indifference about
Wahhabi infiltration of our prisons, military and other institutions.

But two others, Ted Kennedy (D-Mass.) and Dick Durbin (D-lll.), found our

http://www.defenddemocracy.org//in_the_media/in_the_media_show.htm?doc_id= 182607 7/29/03

BW Online I March 17, 2003 I The Cash Squeeze on Terror Inc. Page 1 of 3

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MARCH 17, 2003

NEWS: ANALYSIS & COMMENTARY

The Cash Squeeze on Terror Inc.

Key arrests could help choke off al Qaeda financing

Intelligence officials rejoiced over news that al Qaeda operations chief Khalid Sheik Mohammed had
been nabbed in Pakistan on Mar. 1 and spirited out of the country by U.S. agents. Suspected of being the
key organizer of the September 11 attacks, Mohammed is allegedly one of the biggest fish snared to date
in the U.S.-led crackdown on Osama bin Laden's terror network. Almost as encouraging — though less
high-profile — is the slow but steady progress being made in cracking al Qaeda's fund-raising network.

In the drive to dry up bin Laden's money taps, an operative captured alongside Mohammed may turn out
to be equally crucial. Mustafa Ahmed ai-Hawsawi, a 34-year-old Saudi, set up the bank accounts used
by the September 11 hijackers and received $25,000 in cash that the 19 operatives returned in the days
before the attack, FBI Director Robert Mueller told Congress. Al-Hawsawi is "a big cog in the
machinery that moves al Qaeda money around the Middle East," says terrorism expert Neil C.
Livingstone, chairman of security consultants GlobalOptions Inc. On Mar. 4, U.S. prosecutors unsealed
charges against Sheik Mohammed Ali Hasan Al-Moayad, a Yemeni cleric tied to Brooklyn's al Farouq
mosque. The FBI alleges his associates regularly solicited funds at al Farouq and that he boasted to an
informant of raising $20 million and delivering it personally to bin Laden. Al-Moayad denies the
charges. A spokesman for the mosque said it is "just a place of worship."

Coming on the heels of a spate of U.S. and European moves to shut down charitable fronts used to fund
terrorism, these skirmishes in the money war are beginning to give harried anti-terror officials a glimmer
of hope. "The disruption in [al Qaeda's] funding flow is substantial and real," concludes a senior U.S.
official involved in the campaign. :,(.

awe'-
But disruption isn't destruction — and the financial warriors still have a long* battle ahead. The
wellsprings of terror cash ~ donations raised in mosques and by Islamic charities ~ have hardly been
touched. And the man U.S. intelligence officials suspected of being al Qaeda's financial mastermind,
Sheik Said al-Masri, remains at large.

And while the U.S. Treasury has put American banks on high alert to catch dirty money, other
governments don't feel the same urgency. Even as they publicly praise the international community for
cooperating in the war on terrorist financing, U.S. officials complain privately that foreign government
support has been "spotty at best." Part of the problem comes from Washington. Pleas by Treasury
Secretary John W. Snow for allies to curb money flows are drowned out by other messages, including
the Bush Administration's calls to shore up support for war in Iraq. Indeed, that's why U.S. officials are
thought to be going easy now on countries, most notably Saudi Arabia, where terror funders thrive.

So the fund-raising machine that turns legitimate contributions and profits into blood money is still

http://www.businessweek.com:/print/magazine/content/03_ll/b3824050.htm?mz 6/30/03
 FOXNews.com Page 1 of 4

™°™Wffi5cript: Sen. Jon Kyi (R-AZ) on Fox News Sunday

Lee H. I&mi&ay, June 29, 2003
VICE CHAIR

Max CleTfi§l'io//ovv'n9l 's a transcribed excerpt from Fox News Sunday, June 29, 2003.

, FOX NEWS: The Senate Judiciary Committee held a meeting last Thursday on the influence within
the United States of Wahhabi Islam. The core question is whether Wahhabi radicals, some supported and financed
Jamie Sj$<ttfliifjovernment of Saudi Arabia are spreading anti-American hatred under the guise of religious instruction. The
government of Saudi Arabia hotly denies the claim.
Slade Gorton

lohn F. tMn!aS us now> tne man wfl° ca^e(* tne hearing, Senator Jon Kyi of Arizona. Also here, Brit Hume, Washington
' managing editor of Fox News.
Timothy J. Roemer
Senator Kyi, first I want to get you to give us a thumbnail sketch of what you think the dangers posed by Wahhabi
James RMQsfatiSivuithin the United States are.

LLSf. SEN. JON KYL (R-AZ): The primary danger is their ability to recruit Americans into the war on terror and their
EXEcuTWn5iK^r8ia 'ar9e num^er °f mosques and infiltration of American institutions - prisons, for example, even the
military clergy - in a way that is, I think, very, very dangerous here, because American Muslims are not used to that
kind of Wahhabi influence, the radical influence, as are Muslims in other parts of the world.

SNOW: I don't know if you've seen today's Washington Post. It's 6:00 a.m. out there, they probably haven't thrown it
on your doorstep yet. But Susan Schmidt has a piece that indicates that the United States Navy, and I think the
Pentagon also at some point, on their site, referring to the chaplaincy, actually had a direct link to a site here in the
United States that directed people to sites that included the writings of people who had inspired Osama bin Laden.

Does that surprise you? And does it trouble you?

KYL: It does not surprise me in a way, although I am not aware of it, and it troubles me greatly. But it's very
consistent with the testimony that we had. In fact, Senator Chuck Schumer from New York, in his opening statement
at our hearing on this influence of the Wahhabi radical Muslims, made the point that the military had allowed the
Wahhabi imams to dominate the chaplaincy for Muslims. That same thing he said is occurring in our prisons.

And we're going to be having a series of hearings that will investigate those claims, as well as others relating to the
Wahhabi influence and its support of terror here in the United States.

SNOW: The government of Saudi Arabia argues that, A, it is not directly responsible for any of this. It funds only six
mosques within the United States. B, it has taken aggressive action against radical clerics, firing as many as 1 ,000 in
recent weeks. C, all of the key leaders, including Crown Prince Abdullah, have issued public statements condemning
the kind of violence that has been linked to Osama bin Laden and other Wahhabists.

I want to get your sense of what role, if any, the government, the official government of Saudi Arabia plays in this.

KYL: Our government is very careful to not directly blame the Saudi government for the funding of terrorism around
the world, including in the United States.

But two government witnesses - Larry Aufhauser, who is the general counsel to the Department of Treasury, and, R c j 25
Washington, DC 20407
T 202.33 1.4060 F 202.296.5545
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National Review Online (http://www.nationalreview.com) Page 1 of 3

Guest Comment
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Print Version

April 16, 2003, 7: 15a.m.

Drawing a Line in the Saudi Sand
Time for Riyadh to prove it is an ally in the war on terror.

By Matthew Levitt

w ith the Iraqi regime defeated and military victory near at hand, the United
States and it allies are positioned to leverage greater cooperation in the
war on terror from key Arab states, chief among them Saudi Arabia.

For all its rhetoric, and its limited actions, Saudi Arabia remains part of the
problem of international terrorism, not the answer.

To be sure, Saudi Arabia has made several contributions to the war on terror —
albeit limited and intermittent. In one instance, Saudi agents reportedly
infiltrated two domestic al Qaeda cells, leading to the arrest last June of over
75 al Qaeda members of several nationalities, including Saudis. Saudi security
services have thwarted terror attacks targeting Western interests in the
Kingdom.

Still, even those counterterror efforts in which the Saudis do engage are
inconsistent. While limited operations have been conducted in the tactical
realm of preventing near term attacks on Saudi soil, the Saudis have proved far
less cooperative in critical strategic areas such as combating terror financing or
assisting international terrorism investigations. The actions the Saudis claim to
have already implemented amount to little more than window dressing, when
what is needed is concrete and concerted action.

If the Saudis acted on the four following issues, they would make a significant
contribution to the reinvigorated counterterror offensive to follow the removal
of Saddam and liberation of Iraq. Critically, the only question is whetherthe
Saudis are willing to take such action; they are certainly capable. These are
actions the Saudi regime is capable of taking, and should therefore be expected
and held accountable to implement.

Action in these areas is the yardstick by which the West should measure Saudi
cooperation in the war on terror:

1. Assist International Terror Investigations. Saudi officials are not only

insufficiently cooperative in terrorism investigations, they have obstructed
several recent investigations into key terrorism suspects.

Violating a U.S. Grand Jury subpoena order and State Department regulations,
Saudi diplomats in Washington secreted Maha Hafeez Marri out of the U.S. to
Saudi Arabia in November 2002. Marri's husband, Ali Marri, is charged with

http://www.nationalreview.com/script/printpage.asp?ref=/comment/cornment-levitt041603.asp 6/30/03
GOLDEN CHAIN LIST ANALYSIS & PROFILES Page 1 of 15

GOLDEN CHAIN LIST ANALYSIS &

PROFILES
CONTEXT

The Golden Chain list (or list of wealthy Saudi sponsors) was presented by the US government
as Exhibit 5 in the Department of Justice "Government's Evidentiary Proffer Supporting the
Admissibility of Coconspirator Statements" in the case of USA v. Arnaout (USDC, Northern
District of Illinois, Eastern Division) filed on January 29, 2003. The list was also mentioned in
the Indictment of Enaam Arnaout on October 9, 2002 (02 CR 892). According to the US
government, the document is "a list of people referred to within Al Qaida as the "Golden
Chain", wealthy donors to mujahideen efforts".

Originally, the document was seized by the Bosnian police during searches in the offices of
Benevolence International Foundation in Sarajevo on March 2002. The list was part of a
computer file labeled "Tareekh Osama", or "Osama History", containing scanned images of
several documents. The computer files seized in Bosnia were delivered to the US Embassy
soon after the raids. Our team was granted access to these documents following an order of
the Supreme Court of Bosnia Herzegovina issued on March 6, 2003.

EXECUTIVE SUMMARY

AI-Qaida list of top 20 Saudi financial sponsors include 6 bankers and 12 businessmen, among
which 2 former ministers. Only two on the list have not been yet identified with certainty.

According to our estimates, their cumulative corporate net worth totals more than $85 billion
US, or 42% of the Saudi annual GNP and equivalent to the annual GNP of Venezuela.

These prominent businessmen and bankers own or control 16 companies ranking among the
top 100 Saudi companies.

The complete list of Saudi donors and AI-Qaida recipients (25 names) include 8 individuals
already named in the complaint. We should note that the most virulent Saudi statements
against the lawsuit were issued by those listed in the "Golden Chain", especially Saleh
Abdullah Kamel.

Among the most notable findings, we should highlight the following

-Confirmation that the Bin Laden family has been a major contributor to Usama, despite its
statements denying such support
-Involvement of bankers representing the three largest Saudi banks (National Commercial
Bank, Riyad Bank, Al Rajhi Banking and Investment Corp)
-Involvement of former oil ministers Sheikh Yamani and Taher '' "'
-Involvement of most of them in charity organizations as founders or board members

AL QAIDA DONORS

http://investi.virtualave.net/Golden%20Chain%20Analyses.htm 6/30/03
FOXNews.com Page 1 of 2

Dore Gold, Former Israeli Ambassador to U.N.

Tuesday, April 15, 2003

FOX NEWS

This is a partial transcript from Your World with Neil Cavuto, April 12, 2003, that was edited for clarity. Click here
for complete access to all of Neil Cavuto's CEO interviews.

Watch Your World w/Cavuto weekdays at 4 p.m. and 1 a.m. ET.

NEIL CAVUTO, HOST: Our next guest is begging the U.S. to focus on Saudi Arabia. He says that the country
continues to subsidize suicide attacks, and that if we don't do something about it we won't win this war on terror.
Joining us now from Jerusalem is Dore Gold, former Israeli ambassador to the United Nations and author of Hatred's
Kingdom: How Saudi Arabia Supports the New Global Terrorism.

Ambassador, thank you for coming.

DORE GOLD, FMR. ISRAELI AMBASSADOR TO U.N.: My pleasure.

CAVUTO: I want to get your take on Saudi Arabia, because if you are right, we are focusing on all the wrong
countries. Are we?

GOLD: Well, when I started writing Hatred's Kingdom over a year ago, I had in mind 9/11. We weren't involved in this
Iraq conflict. Syria wasn't being spoken about. But frankly, what happened is I revealed, in doing this research reads,
and it reads like an intelligence document, this book, I revealed how the Saudis actually have been paying for
terrorism. I have canceled checks, payment schedules. It is all there for the reader to see. Now, I understand
President Bush's prioritization of Iraq, because Iraq is the future threat - or was the future threat. It was the potential
combination of weapons of mass destruction, of a rogue state, with terrorist groups. And that has been neutralized.
But you still haven't addressed the country that generated, that spawned the terrorism that led to 9/11, and that's
Saudi Arabia. It may be the past threat but it's still a threat that is out there.

CAVUTO: All right. But then how do you deal with it? I mean, essentially Saudi Arabia is our friend, you are saying
they do a lot of sneaky things which proves they are not our friend, but it is the government we know, how do we deal
with it?

GOLD: Well, I'm not suggesting that you overthrow Saudi Arabia. I'm not suggesting regime change. I wrote a piece
in Monday's Wall Street Journal and I'm very specific on that point. But I think that Saudi Arabia has played a double
game. For their own reasons, some of them identify with bin Laden, some of them are trying to pay protection money
to bin Laden, they have been supporting Al Qaeda.

CAVUTO: Then what do you do, what do you do, what do you do?

GOLD: ...supporting terror - so for the first time, you've got to bang your fist on the table and put pressure on them.
First and foremost, get them to stop financing terrorism, but there is a second issue of incitement as well.

CAVUTO: All right. When you incite, though, you also invite a lot of criticism from other Arab countries. Do you think
the United States is up for that, after now battling Iraq and all the controversy that ensued from that?

GOLD: Well, when I said incitement, I meant the problem is that Saudi Arabia has been brainwashing its young and

http://www.foxnews.com/printer_friendly_story/0,3566,84230,00.html , 7/7/03
 6 of 318 DOCUMENTS

Copyright 2003 The New York Times Company

The New York Times

July 5, 2003, Saturday, Late Edition - Final

SECTION: Section A; Page 3; Column 1; Foreign Desk

LENGTH: 1256 words

HEADLINE: Saudis Quietly Promote Strict Islam in Indonesia

BYLINE: By JANE PERLEZ

DATELINE: JAKARTA, Indonesia, July 4

BODY:
In high school, Atep Arofiq was fascinated by Islamic studies, and with meager means for higher education, a free
institution financed by Saudi Arabia in this bustling capital seemed like a natural choice. There was an added attraction:
the best students could graduate to further study in Saudi Arabia, all expenses paid.
Mr. Arofiq, 25, entered the Educational Institution of Indonesia-Saudi Arabia, housed in a gleaming building on a
main thoroughfare. He lasted in the austere environment for two years.
"There were too many forbidden things," he said of the school where the Arabic language, taught by teachers from
Saudi Arabia, is the focus of die curriculum. "You were not allowed to join any other student organization. Jeans were
out, and they preferred that you wear a beard and long Arabic clothes."
Mr. Arofiq did not feel at home at the Saudi-run school, where he said the strict Wahhabi form of Islam was the
basis of the teaching. But he was the exception. Most students persevered for the full five years, he said. From the
financing of educational institutions to giving money for militant Islamic groups, the influence of Saudi Arabia, and
Saudi charities, has been growing steadily here in the world's most populous Muslim country.
Until recently, Indonesia has been famously relaxed about its religion. But slowly Indonesians are becoming more
devout and in the battle for the soul of Islam here the Saudis are playing an important though stealthy role, Indonesian
scholars say.
The Saudi money has come in two forms, Indonesian and Western officials said: above-board funds for religious
and educational purposes, and quietly disbursed funds for militant Islamic groups. The Saudi money has had a profound
effect on extremist groups, allowing some to keep going and inspiring others to start recruiting, the officials said.
A Saudi charity, Al Haramain, provides a good example of this dual role. Three years ago it signed a formal
memorandum of understanding with the Indonesian Ministry of Religion that allowed it to finance educational
institutions.
But Al Haramain also appears to have served as a conduit for money to Jemaah Islamiyah, a Southeast Asian
terrorist organization that aims to build Islamic states in the region. A senior member of Jemaah Islamiyah, Umar Faruq,
who was arrested last year and is now in American custody, told the Central Intelligence Agency that Al Haramain
provided money to his jroup.
Earlier this year, under pressure from Washington, Saudi government officials announced that Al Haramain had
been asked to close down in all the Muslim countries where it was operating.
 7 of 318 DOCUMENTS

Copyright 2003 The Washington Post

The Washington Post

June 27, 2003, Friday, Final Edition

SECTION: A SECTION; Pg. Al 1

LENGTH: 759 words

HEADLINE: Wahhabi Strain of Islam Faulted; Saudis'Funding Helps Foster Terror Groups, Experts Say

BYLINE: John Mintz, Washington Post Staff Writer

BODY:

In a rare congressional hearing on Saudi funding of extremism, two U.S. senators and a panel of terrorism experts
said yesterday that top Saudi officials and institutions spend huge sums from the kingdom's oil wealth to promote an
intolerant school of Islam embraced by al Qaeda and other terrorist groups.
"The problem we are looking at today is the state-sponsored doctrine and funding of an extremist ideology that
provides the recruiting grounds, support infrastructure and monetary lifeblood to today's international terrorists," said
Sen. Jon Kyi (R-Ariz.), who chaired the hearing of the Senate Judiciary Committee's terrorism panel.
Although administration officials have avoided suggesting that Saudi Arabia, an important U.S. ally, is the world's
leading source of terrorist funding, Treasury Department general counsel David Aufhauser testified yesterday that "in
many ways, [Saudi Arabia] is the epicenter" for the financing of Osama bin Laden's al Qaeda network and other terrorist
movements.
"We are not at war with a faith, nor with any particular sect," Aufhauser said. But he added that Islam's "severe and
uncompromising" Wahhabi movement "is a very important factor to be taken into account when discussing terrorist
financing."
Aufhauser added that the Saudis' largely unmonitored spending to disseminate the Wahhabi viewpoint worldwide
"is a combustible compound when mixed with religious teachings in thousands of madrasahs [Islamic schools] that
condemn pluralism and mark nonbelievers as enemies . . . It needs to be dealt with."
Wahhabism was founded in the 18th century by the cleric Muhammad ibn Abd al-Wahhab, who preached an
austere brand of Islam that barkens to the prophet Mohammed. Historians say the modern Saudi state is led by an
alliance of his followers, who handle the kingdom's religious affairs, and the royal Saud family.
Saudi Embassy officials did not respond to requests for comment yesterday evening. But in the past they and their
defenders have said critics of Wahhabism exhibit an anti-Islamic bias and want to disrupt the U.S.-Saudi alliance. Saudi
officials discourage the use of the term Wahhabism to describe their religious view, preferring the term Salafism.
Witnesses at the hearing did not provide many details about the Saudi religious establishment's spending practices
around the world ~ a problem confronted by Wahhabism's critics for years, in part because of the Saudis' traditional
secrecy about their affairs.
Alex Alexiev, an expert on extremist movements and a fellow at the conservative Center for Security Policy, cited
figures in Saudi government reports showing that between 1975 and 2002, the government had spent $ 70 billion on aid
projects around the world. He said it was unclear whether this included the large sums in private donations doled out by
Saudi-regulated foundations. ..
FOXNews.com Page 1 of 3

channel;

The Two Faces of Saudi Arabia

Monday, December 02, 2002

FOX NEWS

This is a partial transcript from The Beltway Boys, November 30, that has been edited for clarity. Click here to order
the complete transcript.

Watch The Beltway Boys Saturday at 6 p.m. ET and Sunday at 1 and 6 a.m. ET

FRED BARNES, CO-HOST: Welcome back to The Beltway Boys.

Our next guest says the most dangerous and oppressive brand of Islamic extremism isn't found in Iran or Iraq but in
America's closest Arab ally, Saudi Arabia. And he says it's about time the Bush administration wises up.

He's journalist Stephen Schwartz, author of the new book The Two Faces of Islam: The House ofSaud, From
Tradition to Terror.

Welcome, Steve.

STEPHEN SCHWARTZ, AUTHOR, THE TWO FACES OF ISLAM: Great to be here.

BARNES: Well, I've read your book. It's a terrific book. I highly...

SCHWARTZ: Thank you.

BARNES:... recommend it. But here's my first question, and that is, as you know, the wife of the Saudi Arabian
ambassador to the United States gave some money to a man who turned out to be a close friend and supporter of
two of the September 11 hijackers.

SCHWARTZ: That's right.

BARNES: Now, is this a scandal? What do you make of this?

SCHWARTZ: Well, I think this shows the situation inside the House of Saud, inside the Saudi government, and inside
all of its institutions, including its embassies and other diplomatic institutions.

The connection of the House of Saud with Wahhabism, this extremist form of Islam, is so close that it's almost - it
would be hard to imagine the president - the princess not realize, not realizing that, that this would be a problem to
hand this money around.

It's very hard for me to accept that idea, because she knows that the whole of Saudi society is saturated with this
extremism. She knows that they supported the Taliban, did all these other things. It just doesn't make any sense to
me to suggest that this was done in some unknowing way.

JUAN WILLIAMS, GUEST CO-HOST: Now, Steve, how many of the 9/11 hijackers subscribed to this radical brand
of Islam called Wahhabism?

http://www.foxnews.com/printer_friendly_story/0,3566,71890,00.html 7/14/03
iQ2CNews.com Page 1 of 4

channel

Saudi Arabia: Where Does It Stand?

Friday, May 16, 2003

FOX NEWS

This is a partial transcript of Special Report with Brit Hume, May 9, that has been edited for clarity. Click here
to order the complete transcript.

Watch Special Report With Brit Hume weeknights at 6 p.m. ET

(BEGIN VIDEO CLIP)

JOHN ASHCROFT, ATTORNEY GENERAL: We believe that we have had good cooperation with the Saudis. We
believe we that want to continue to improve our cooperation and upgrade our performance, not only with the Saudis,
but with people around the world, and our own capacity to deal with terror.

(END VIDEO CLIP)

BRIT HUME, HOST: The U.S. government seems caught these days between warning its old ally Saudi Arabia
(search) that it needs to face up to terrorism in its country. And at the same time, as ypu heard there, praising the
Saudis for their cooperation. And that reflects a real debate about Saudi Arabia - is/ita U.S. friend and ally on the
war on terror? Or is it a medieval dictatorship that has tried to cope with terrorism by both supporting and exporting it?

One who holds the latter view is Steven Schwartz, of the Foundation of Defense of the Democracies and author of
the book, The Two Faces of Islam.

Welcome to you, sir.

STEPHEN SCHWARTZ, AUTHOR, THE TWO FACES OF ISLAM: Good to be here.

HUME: So, what is it that this recent terrorist attack in Saudi Arabia tells us that we should have known or at least
didn't know before?

SCHWARTZ: Well, it seems to me we have to recognize the fact that this is a society suffused with the terrorist
ideology. The Saudi state is based on a terrorist ideology, Wahhabism (search), which is the most extreme sect of
Islam, and is the state sect, inside Saudi Arabia.

HUME: Now, stop. Let me stop you right there for a moment.

SCHWARTZ: Yes, sir.

HUME: Wahhabism, cast as you cast it, certainly threatens the Saudi royal family, doesn't it?
<;!V*' v
SCHWARTZ: No. There's a division in the Saudi royal family. Wahhabism supports the Saudi royal family. The \n that's threat

between the Saudi royal family and the Wahhabis goes back 250 years. ^

The thing is, that the royal family has managed Wahhabism until now. But now, on the one side, there are forces in

http://www.foxnews.com/printer_friendly_story/0,3566,87061,00.html 7/14/03
 38 of 338 DOCUMENTS

Copyright 2003 The McGraw-Hill Companies, Inc. www.mcgraw-hill.com

All rights reserved
Business Week

March 17, 2003

SECTION: NEWS; Analysis & Commentary: THE MONEY TRAIL; Number 3824; Pg. 38

LENGTH: 1606 words

HEADLINE: THE CASH SQUEEZE ON TERROR INC.

BYLINE: By Mike McNamee and Lorraine Woellert in Washington, with Carol Matlack in Paris, and bureau reports

HIGHLIGHT:
Key arrests could help choke off al Qaeda financing

BODY:
Intelligence officials rejoiced over news that al Qaeda operations chief Khalid Sheik Mohammed had been nabbed
in Pakistan on Mar. 1 and spirited out of the country by U.S. agents. Suspected of being the key organizer of the
September 11 attacks, Mohammed is allegedly one of the biggest fish snared to date in the U.S.-led crackdown on
Osama bin Laden's terror network. Almost as encouraging — though less high-profile -- is the slow but steady progress
being made in cracking al Qaeda's fund-raising network.
In the drive to dry up bin Laden's money taps, an operative captured alongside Mohammed may turn out to be
equally crucial. Mustafa Ahmed al-Hawsawi, a 34-year-old Saudi, set up the bank accounts used by the September 11
hijackers and received $ 25,000 in cash that the 19 operatives returned in the days before the attack, FBI Director
Robert Mueller told Congress. Al-Hawsawi is "a big cog in the machinery that moves al Qaeda money around the
Middle East," says terrorism expert Neil C. Livingstone, chairman of security consultants GlobalOptions Inc. On Mar.
4, U.S. prosecutors unsealed charges against Sheik Mohammed Ali Hasan Al-Moayad, a Yemeni cleric tied to
Brooklyn's al Farouq mosque. The FBI alleges his associates regularly solicited funds at al Farouq and that he boasted
to an informant of raising $ 20 million and delivering it personally to bin Laden. Al-Moayad denies the charges. A
spokesman for the mosque said it is "just a place of worship."
Coming on the heels of a spate of U.S. and European moves to shut down charitable fronts used to fund terrorism,
these skirmishes in the money war are beginning to give harried anti-terror officials a glimmer of hope. The disruption
in [al Qaeda's] funding flow is substantial and real," concludes a senior U.S. official involved in the campaign.
But disruption isn't destruction ~ and the financial warriors still have a long battle ahead. The wellsprings of terror
cash — donations raised in mosques and by Islamic charities — have hardly been touched. And the man U.S. intelligence
officials suspected of being al Qaeda's financial mastermind, Sheik Said al-Masri, remains at large.
And while the U.S. Treasury has put American banks on high alert to catch dirty money, other governments don't
feel the same urgency. Even as they publicly praise the international community for cooperating in the war on terrorist
financing, U.S. officials complain privately that foreign government support has been "spotty at best." Part of the
problem comes from Washington. Pleas by Treasury Secretary John W. Snow for allies, to curb money flows are
drowned out by other messages, including the Bush Administration's calls to shore up support for war in Iraq. Indeed,
that's why U.S. officials are thought to be going easy now on countries, most notably Saudi Arabia, where terror flinders
thrive.
Saudi Arabia, press releases, 12/03/02: Saudi Arabia announces counter terrorism measures Page 1 of 3

Royal Embassy of Saudi Arabia

Information Office
PRESS
Washington, B.C.
RELEASES

CURRENT
.NEWS PRESS RELEASE
December 3, 2002
HOME

STATEMENTS
Saudi Arabia Announces Counter-Terrorism Measures
AND
SPEECHES The Government of Saudi Arabia today revealed a number of
substantial legal and regulatory changes enacted over the past year to
counter terrorism. Important steps have recently been taken to control
charitable funds, prevent money laundering, and improve multi-lateral
cooperation. In cooperation with the United States and other countries,
the Kingdom of Saudi Arabia has been on the forefront of the war on
terrorism. Today's announcement was made to correct misperceptions
about the Kingdom in this area.
"For too long, Saudi Arabia has been wrongly accused of being
uncooperative or ineffective in combating terrorism," stated Adel Al-
Jubeir, the Foreign Policy Advisor to Crown Prince Abdullah. "The
unfounded charges against Saudi Arabia have gotten out of control. We
recognize that it is now incumbent on us to more openly articulate our
anti-terrorism policies and actions."
One of the most noteworthy developments is in the area of charitable
organizations. Charitable giving is an important part of Islam and there
are hundreds of legitimate charities throughout the Kingdom. Saudi
Arabia has recently completed a thorough review of its charitable
organizations and has made a number of specific changes. For example,
all charities are now subject to extensive audits to ensure that the
funds provided by donors are used for their intended purposes. In
addition, charities whose activities extend beyond'Saudi Arabia's
borders must now report and coordinate their activities with the Foreign
Ministry. Saudi Arabia has also established a High Commission for
oversight of all charities, and is in the final stage of setting up detailed
Operational Procedures to track all donations to and from the charities.
The Government of Saudi Arabia believes these combined changes will
substantially decrease its charitable sector's vulnerability to abuse by
evil-doers.
According to Al-Jubeir: "Probably the most significant new action we
have taken has been in the area of charitable giving. In the past, we
may have been naive in our giving and did not have adequate controls
over all of our donations. As a consequence, some may have taken
advantage of our charity and generosity. With the new steps we are
taking, this is now changing."
Saudi Arabia also announced plans to re-invigorate the joint Counter-
Terrorism Committee with the United States to include, in addition to
intelligence and law enforcement personnel, personnel with financial

http://saudiembassy.net/press_release/releases/02-PR-1203-terror.htm 5/27/03
FOXNews.com Page 1 of 3

channel!

U.S. Stepping Up Pressure on Saudis

Wednesday, November 27,2002

FOX NEWS

WASHINGTON — The Bush administration is stepping up pressure on Saudi Arabia to block contributions to
charitable organizations that end up funding terrorist activities.

"Those funds could get misused and where we have this information we make it available to the Saudis," Secretary of
State Colin Powell said Tuesday from Mexico City.

But Bush administration officials say ad hoc government groups are probing ways to tighten financial controls
worldwide and dry up support for terrorists. No specific recommendations have been made.

"It's appropriate to have a broad group look at a number of options, so it's helpful to have ideas kicked around," said
White House spokesman Ari Fleischer. "The president believes that Saudi Arabia has been a good partner in the war
against terrorism ... but even a good partner like Saudi Arabia can do more in the war."

The Washington Post on Tuesday reported that a National Security Council task force is recommending a plan to
force the Saudis to crack down on terrorist financiers and threatens unilateral U.S. action against suspects. The
report also said that Bush's top national security advisers approved the idea but wanted to review it more thoroughly
before sending it to Bush.

But Powell dismissed the story. "There is no substance to those reports. I have no kno"-.-!odge of any such study
developing the conclusions we should issue ultimatums or take unilateral action."

Meanwhile, a Saudi man denied reports that he forwarded money from Saudi Princess Haifa al-Faisal, wife of the
Saudi ambassador to Washington, Prince Bandar bin Sultan, to two of the Sept. 11 hijackers who crashed a plane
into the Pentagon.

Osama Basnan told the London-based, Saudi-owned newspaper Asharq al-AwsatVha\e used the money for
medical care for his wife, Palestinian Majeda Dweikat -- a mother of six who needed surgery - and that he hadn't met
the terrorists.

Bandar told The New York Times that he regretted that the donations were unfairly putting a strain on U.S.-Saudi
relations, but that the link between the two countries remains strong.

"This is a war and we are in it together," Bandar said from his northern Virginia home.

His wife told the newspaper she was "outraged when people think I can be connected to terrorists when all I wanted
to do was to give some help to someone in need."

"My mother taught us never to judge anyone by what you hear without any proof, and it seems that people are
judging us without any proof," she said.

Princess Haifa, 51, told the Times she felt as if a bomb was dropped on her head last weekend when reporters began
calling her, asking about the contributions. She has been catapulted into such a political storm that prominent
members of the GOP have been calling her offering their support.

http://www.foxnews.com/printer_friendly_story/0,3566,71575,00.html 5/27/03
Saudi Arabia, press releases, 11/24/02: Princess Haifa refutes charge of terrorist financing Page 1 of 1

Royal Embassy of Saudi Arabia

Information Office
RELEASES Washington, D.C.

CURRENT
NEWS PRESS RELEASE
November 24, 2002
HOME

STATEMENTS STATEMENT ISSUED BY

AND PRINCESS HAIFA AL-FAISAL
SPEECHES
HRH Princess Haifa AI-Faisal, wife of HRH Prince Bandar bin
Sultan, Ambassador of the Kingdom of Saudi Arabia to the United
States, today said:

"I heard U.S. lawmakers in the American media today say that money
that I have donated to a needy Saudi family living in the United States
was transferred to two Saudi 9-11 terrorists.

"My father, King Faisal, was killed in a terrorist act in 1975. I find that
accusations that I contributed funds to terrorists outrageous and
completely irresponsible.

"This is the time for people to come together to combat the scourge of
terrorism so that others will not suffer the loss of loved ones."

- end -

http://saudiembassy .net/press_release/releases/02-PR-1124-Haifa.htm 5/27/03

TME.tui'ii. A Saudi In The Hot Seat -- May. 12,2003 wysiwyg://60/http://www.time.com/time/ma...article/0,9171,1101030512-449463,00.hti

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A Saudi In The Hot Seat

Prince Sultan faces a legal battle over an alleged connection
to the Sept. 11 attacks
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Sultan made large donations to Islamic charities that supported the Sept.
11 hijackers. Sultan's attorneys at the law firm Baker Bolts, where former
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contributions came from government coffers and were disbursed by the
Prince in his role as a Saudi official. If the latter is proved, say his
attorneys, the Prince would be shielded from legal action under U.S. law.

But the situation is not so clear cut. The al Sauds are often accused of
running their country like a family business, controlling virtually every
official post. Separating private contributions from official ones may
prove difficult. A review of Saudi official declarations by TIME revealed
half a dozen references to Sultan's donations as being "personal." The
Saudi Press Agency, a wing of the Ministry of Information, lists
$266,000 donated by Sultan to the International Islamic Relief
Organization as a "personal" contribution. U.S. and Canadian authorities
**

Iof2 5/7/03 9:20 AN

audi Envoy in L.A. Is Deported http://www.latimes.convnewsaocauia-nre-ucyuii.iuuiajiv,1,

Saudi Envoy in L.A. Is Deported

• Prayer leader at King Fahd Mosque is suspected of having links to terrorists, officials say.

By Patrick J. McDonnell, Times Staff Writer

A Saudi consular official and Muslim prayer leader based in Los Angeles
was denied entry to the United States this weekend expelled from the Fill 'er Up -
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country because of suspected terrorist links, according to law j Restaurant
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enforcement officials and documents. \o Decadt
| Revealed
California Fahad al Thumairy, 31, part of the Saudi Consulate here since 1996, was Mr. Unpopui
detained at Los Angeles International Airport on Tuesday after arriving Persist
on a Lufthansa flight from Frankfurt. He carried a Saudi passport and an Ontario's Aii
A-2 visa normally issued to diplomats or government dignitaries. Willing, to G
Leaves Cos
U.S. authorities, acting on undisclosed intelligence information, revoked Over 5 Year
the visa in March — a fact apparently unknown to al Thumairy.

After two days in custody, al Thumairy was expelled from the country SUBSCRIBE 1
Los Angeles
Thursday and put aboard a Frankfurt-bound flight with connections to click here
Saudi Arabia, officials said. The terms of his expulsion ban him from
returning to the United States for five years.

"He was placed on an international flight, destined for Riyadh," said

Virginia Kice, a spokeswoman for the Department of Homeland Security.

At the consulate, al Thumairy held a diplomatic post in the Islamic and cultural affai
He also served as a prayer leader at the King Fahd Mosque in Culver City, one of So
California's largest Muslim houses of worship.

A many as 1,000 worshipers gather at the blue and white mosque on Fridays, the Mi
day. The worshipers include many immigrants from Asia, Africa, the Middle East ar
along with U.S.-born Muslims.

The Saudi government helped finance construction of the King Fahd Mosque, part o
government's practice of promoting Islam abroad.

The Arab kingdom also funds construction of other mosques, prints and distributes i
provides prayer leaders and religious speakers worldwide. Members of the Saudi roy
including the ailing King Fahd, view themselves as the caretakers of Islam and its he
shrines.

Since Sept. 11, 2001, U.S. officials have stepped up scrutiny of visa applicants from
Arabia and other Muslim nations, while launching a program to register and questioi

Iof3 5/12/03 8:52 A

;audi£ovgrrmjent: Bin Laden Loyalists: How High Do They Go? Wysiwyg://! l/http://www.msnbc.com/news/905880.as

A Saudi diplomat
met an al-Qaeda
ring leader at this
mosque

Saudi Government: Bin Laden

online yettowpaje*
Find a Local Business Loyalists: How High Do They Go?
How far will the Saudi government go to root out Qaeda
loyalists within its own ranks
By Michael Isikoff
NEWSWEEK
May 5 issue — Moving to quell an embarrassing
scandal, Saudi Arabian authorities recently
detained for questioning one of their own
diplomats amid suspicions that he may have
funneled hundreds of thousands of dollars out of
official Saudi accounts to Al Qaeda operatives in
Europe, NEWSWEEK has learned. Newsweek
Periscope
• Saudi
E-MAIL THIS • COMPLETE STORY Govemmei
Bin
Laden
Loyalists:
How High
Do Thev

4/29/03 3:30 P
Iof3
: News INEWSNIGHT I Greg Palest report transcript - 6/11/01 http://news.bbc.co.Uk/l/hi/events/newsnight/1645527.sti

Front Page
World
UK
UK Politics This transcript is produced from the teletext subtitles
Business that are generated live for Newsnight. It has been
Sci/Tech checked against the programme as broadcast,
Health however Newsnight can accept no responsibility for
Education any factual inaccuracies. We will be happy to correct
Entertainment serious errors.
Talking Point
In Depth Has someone been sitting on the FBI? 6/1 1/01
AudioVideo
n e w B n
GREG PALAST:
D0H SPORT I The CIA and Saudi Arabia, the Bushes and the Bin
Ladens. Did their connections cause America to turn
CH3H Weather
a blind eye to terrorism?

UNNAMED MAN:
Daily E-mail Tnere is a nidden agenda at the very highest levels of
News Ticker our government.
Mobiles/PDAs
War on
Terror
Feedback JOE TRENTO, (AUTHOR, "SECRET HISTORY OF
He.pTHECIA11):
The sad thing is that thousands of Americans had to
LOW Graphics die needlessly. Attack on
America
PETER ELSNER:
How can it be that the former President of the US
and the current President of the US have business latest
dealings with characters that need to be H programme.
investigated?

PALAST: Gaming up
In the eight weeks since the attacks, over 1,000 on newsnig
suspects and potential witnesses have been
detained. Yet, just days after the hijackers took off
from Boston aiming for the Twin Towers, a special ears of
charter flight out of the same airport whisked 11
members of Osama Bin Laden's family off to Saudi ewsnight
Arabia. That did not concern the White House.

Their official line is that the Bin Ladens are above

suspicion - apart from Osama, the black sheep, who the team!
they say hijacked the family name. That's fortunate
for the Bush family and the Saudi royal household,
whose links with the Bin Ladens could otherwise
prove embarrassing. But Newsnight has obtained Newsnight
evidence that the FBI was on the trail of other Scotland
members of the] Bin Laden family for links to terrorist
 Hotmail - Message http://by5fd.bay5.hotmail.msn.com/cgi-bi...4092.51&start=1528930&len=8376&msgread:

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By Matthew Levitt, senior fellow in terrorism studies
Upgrade yoi
The Washington Institute for Near East Policy
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National Review Online, April 16, 2003
More...
With the Iraqi regime defeated and military victory near at hand, the
United States and it allies are positioned to leverage greater
cooperation in the war on terror from key Arab states, chief among them
Saudi Arabia.

For all its rhetoric, and its limited actions, Saudi Arabia remains
part of the problem of international terrorism, not the answer.

To be sure, Saudi Arabia has made several contributions to the war on

terror - albeit limited and intermittent. In one instance, Saudi agents
reportedly infiltrated two domestic al Qaeda cells, leading to the
arrest last June of over 75 al Qaeda members of several nationalities,
including Saudis. Saudi security services have thwarted terror attacks
targeting Western interests in the Kingdom.

Still, even those counterterror efforts in which the Saudis do engage

are inconsistent. While limited operations have been conducted in the
tactical realm of preventing near term attacks on Saudi soil, the Saudis
have proved far less cooperative in critical strategic areas such as
combating terror financing or assisting international terrorism
investigations. The actions the Saudis daim to have already implemented
amount to little more than window dressing, when what is needed is
concrete and concerted action.

If the Saudis acted on the four following issues, they would make a
significant contribution to the reinvigorated counterterror offensive to
follow the removal of Saddam and liberation of Iraq. Critically, the
only question is whether the Saudis are willing to take such action;
they are certainly capable. These are actions the Saudi regime is
capable of taking, and should therefore be expected and held accountable
to implement.

Action in these areas is the yardstick by which the West should measure
Saudi cooperation in the war on terror:

1. Assist International Terror Investigations. Saudi officials are not

only insufficiently cooperative in terrorism investigations, they have
obstructed several recent investigations into key terrorism suspects.

Violating a U.S. Grand Jury subpoena order and State Department

regulations, Saudi diplomats in Washington secreted Maha Hafeez Marri

lof.3 4/21/03 3:19PM

^ Legal Counterattack Wysiwyg://! l/http://www.msnbc.com/news/901320.as

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QweuOex.™
online yellow pases i A Legal Counterattack
Find a Local Business! Saudis hire some of the toniest U.S. law firms to defend them
j
against the landmark $1 trillion lawsuit on behalf of the
victims of 9-11. So why is the plaintiff's counsel ecstatic?
Plus, new heat on radical imam

NEWSWEEK WEB EXCLUSIVE

April 16 — After months of working below the

radar, a huge U.S. legal team hired by the
Kingdom of Saudi Arabia has sprung into action
and begun a major counteroffensive against a
landmark lawsuit seeking $1 trillion in damages
on behalf of the victims of the September 11 Newsweek
Opinion
terror attacks. • Perspectr
•The
Politics of
• E-MAIL THIS"* 5 • COMPLETE STORY Vengeance
•My
Turn:

Iof9 4/21/03 3:29 PN

UFE/RL Crime and Corruption Watch http://www.rterl.0rg/corruptionwatcn/zuuz/i 1/4U-Z11 luz.as

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'Reporting on Organised Crime and Corruption Sn the former USSR, East Europe, and the Middle Eas

Previous Issues I Contact Us I Reprints I Subscribe I Current Issue I

; Email this report to a friend

21 November 2002, Volume 2, Number 40

END NOTE

Bankrolling Terror: A Special RFE/RL Report On Terrorist Financing

By Roman Kupchinsky
THE STRUCTURE EMERGES: In the late 1980s and early 1990s a series of discussions took place among
Islamic activists throughout the world. The topic was the primacy of the ummah, the great faith, over nation states
and the need for some type of loose international network which would help create a nonterritorial Islamic state.
An emerging view was succinctly stated by Hafiz Muhammad Saeed, head of the Marka-ul-Dawa-il Irshad and its
armed wing the Lashkar-e-Toiba (both suspected of having strong ties to the Al-Qaeda network) operating in
Kashmir: "There is a need to raise a pure Islamic movement in the sub-continent. The Muslims can be steered to
the right path by giving them the right ideology, calling them to Jihad and forging integrity among their ranks
(Jama'at-ud-Da'awa website, http://www.jamatdawa.org/english/articles/)

An even more lucid description of this line of thinking can be found in the October-November 1996 issue of "Nida"
ul Islam" (The Call of Islam), a militant-Islamic magazine published in Australia, in which Al-Qaeda leader Osama
bin Laden said this about the collective responsibility of the Muslim community against Westernism: "What bears
no doubt in this fierce Judeo-Christian campaign against the Muslim world, the likes of which has never been seen
before, is that the Muslims must prepare all possible might to repel the enemy, militarily, economically, through
missionary activity, and all other areas."

As these discussions were taking place, the internationalization of Islamic militancy was growing. The number of
faithful making the pilgrimage to Mecca was vastly growing as people came from all corners of the globe. Students
from Indonesia, Malaysia, and the Philippines were studying in the Middle East where they were able to exchange
ideas and create close friendships. The network was being created.

The Soviet Union had ceased to exist for all practical purposes and its war in Afghanistan was over. The war,
however, had produced unexpected results for the Islamic world in the form of a loosely knit group of veterans.
Some 5,000 Saudis, 3,000 Yemenis, 2,800 Algerians, 2,000 Egyptians, and other non-Afghans had fought in
Afghanistan. They were returning home victorious. These were men trained to fight, build bombs, and train others
to do the same.

Soon these men were involved in creating such terrorist organizations as the Jemaah Islamiyah and the Vanguards
of Conquest in Egypt. "Jane's Intelligence Digest" from 28 September 2001 describes how the Afghan vets went
about setting up the network. In Algeria, the Algerian Armed Islamic Group (GIA) began the reign of terror which
thus far has taken over 100,000 lives; others headed for the Philippines and joined the newly formed Abu Sayyaf
guerillas. Some went to Chechnya. In Indonesia, a former Afghan veteran, Ridyan Isamuddin, better known as
Hambali, became the main go-between between Al-Qaeda and the Jemaah Islamiyah, the Islamic group fighting for
a pan-Islamic Southeast Asia. Jemaah Islamiyah had its origins in a small Islamic school - the Al Mukmin Quranic
Studies Boarding School - founded in the Ngruki village of Solo, Indonesia, by Abu Bakar and Emir Sheikh
Abdullah Sungkar, another Indonesian cleric also of Hadrami descent.

Abu Bakar and Sheikh Abdullah are reported to have traveled to Afghanistan during the 1980s, where they fought
alongside Osama bin Laden in the war against the former Soviet Union. Jemaah Islamiyah was allegedly brought
into the Al-Qaeda network in the 1980s.

Some 200 veterans of the Afghan war settled in the New York/New Jersey region where some of them congregated
around the New Jersey mosque where Omar Abdel Rahman preached. By 1993 Rahman was plotting the bombing
of the World Trade Center.

Iof7 4/9/03 9:58 AN

Washington Asks, How Firm Are Saudis on Extremists? Page 1 of4

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W ASHINGTON, May 13 — The suicide bombing on Monday night in

Riyadh that killed at least seven Americans has revived a sharp debate
here over whether Saudi Arabia has moved firmly enough to fight Islamic
I

militancy within its borders and to stanch the flow of money to terrorist groups
overseas, lawmakers and Middle East experts say. Targetin
THREATS AN!
Since the Sept. 11 attacks, in Advertisement
which 15 of the 19 hijackers
were Saudi citizens, the
Saudi government has tried TIMES NEWS TRA
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counter extremists and to
cooperate in the American-
led fight against terrorism.

The Bush administration has

applauded these moves,
which have included a
crackdown on charitable
foundations suspected of
financing terrorism and
greater intelligence sharing and coordination on counterterrorism. Today, a State
Department spokesman, Philip T. Reeker, said the United States had had "good
cooperation" from the Saudis on counterterrorism initiatives.

But critics, who include both conservative Republicans and liberal Democrats,
contend that the latest bombings show that those steps have been inadequate. The
Saudi royal family, the critics argue, remains ambivalent about cracking down on
the militant clerics and their sympathizers who have provided religious guidance
and financial sustenance to Al Qaeda.

http://www.nytimes.com/2003/05/14/internationaymiddleeast/14DIPL.html?ex=10534896... 5/14/2003
Country: Afghanistan, Germany, Saudi Arabia, Tunisia
Topic: INTERNATIONAL POLITICAL, TERRORISM
/ource-Date: 03/31/2003

German Report Details Saudi Links To Arrested Berlin Terror Suspects, Al-Qa'ida
EUP20030331000328 Hamburg Der Spiegel in German 31 Mar 03 pp 70-72

Reference:
Germany: Saudi Diplomat's Alleged Contact With Suspected Terrorists Reported <iavascript:open_doc
('/doc lib/2003/003/26/EUP20030326Q00359N.html")> EUP20030326000359 Hamburg Spiegel Online
WWW-Text German 26 Mar 03
Germany Examining Al-Qa'ida Link After Arrest of Six Islamists <iavascript:open doc
('/doc lib/2003/003/24/EUP20030324000323N.htmn> EUP20030324000323 Hamburg Der Spiegel
German 24 Mar 03
[Report by Georg Mascolo and Holger Stark: "The Saudi Connection"]
[FBIS Translated Text]
The arrested Tunisian terrorist suspects obviously had a prominent supporter — an attache from the Saudi
Embassy in Berlin apparently provided financial and logistical support.

The special operation command to arrest Tunisian terrorist suspect Ben S. was already on the way when on
Thursday of the week before last [20 March], all of a sudden and completely unexpectedly, big politics came
into play. Excitedly, his pursuers from the Federal Office for Criminal Investigations (BKA) reported that the
man had just disappeared into an official-looking building. It might even be the Embassy of the Kingdom of
Saudi Arabia, they said.