Testimony of Steven Emerson

Before the

House Committee on Financial Services Subcommittee on Oversight and Investigations

"PATRIOT Act Oversight: Investigating Patterns of Terrorist Fundraising"

Fund-Raising Methods and Procedures for International

Terrorist-Organizations

February 12,2002

Steven Emerson
Executive Director
The Investigative Project
StopTerror@aol.com
Washington, DC
 Testimony of

Steven Emerson

Before the

House Committee on Financial Services Subcommittee on Oversight and

Investigations

"Progress Since 9/11: The Effectiveness of U.S. Anti-Terrorist Financing

Efforts"

Terrorism Financing & U.S. Financial Institutions

March 11, 2003

Steven Emerson
Executive Director
The Investigative Project
5505 Conn. Ave. NW, Suite 341
Washington, DC 20015

Phone 202.363.8602 Fax 202.966.5191

Email: Stopterror@aol.com
 Page 1 of7

Statement of John S. Pistole

Senate Committee on Governmental Affairs
""Terrorism Financing: Origination, Organization, and Prevention.""
July, 312003

Senate Committee on Governmental Affairs

John S. Pistole
Deputy Assistant Director
Counterterrorism Division
Federal Bureau of Investigation

July 31,2003

"Terrorism Financing: Origination, Organization, and Prevention"

Good morning Madam Chair Collins, Senator Lieberman, and other distinguished members of
the committee. It is an honor to testify before this committee regarding the FBI's efforts in
identifying, tracking and dismantling the financial structure supporting terrorist groups.

Prior to the events of September 11, 2001 (9/11), the FBI had no mechanism to provide a
comprehensive, centralized, focused and pro-active approach to terrorist financial matters. While
the FBI examined financial records at the time of previous terrorist attacks, as part of the
investigation into each of the attacks, the events of 9/11 identified a critical need for a more
comprehensive, centralized approach to financial matters. The Terrorist Financing Operations
Section (TFOS) of the FBI's Counterterrorism Division was formed, after 9/11, in response to
this critical need. The mission of the TFOS has since evolved into a broader strategy to identify,
investigate, prosecute, disrupt and dismantle incrementally, all terrorist related financial and
fund-raising activities.

Identifying, tracking and dismantling the financial structure supporting terrorist groups is critical
to successfully dismantling the organizations and preventing future terrorist attacks. As is the
case in most investigations, locating and "following the money" plays a critical role in
identifying those involved in the criminal activity, establishing links among them, and
developing evidence of their involvement in the activity.

Terrorists, their networks and support structures, require funding in some form to exist and
operate. Whether the funding and financial support is minimal or substantial, it usually leaves a
financial trail that can be traced, tracked, and exploited for pro-active and reactive purposes.
Being able to identify and track financial transactions and links after a terrorist act has occurred
or terrorist activity has been identified, represents only a small portion of the mission; the key

http://www.senate.gov/~gov_affairs/index.cfm?Fuseaction;=Hearings.Testimony&HearingID=... 8/4/03
 Page 1 of7

Statement of John S. Pistole

Senate Committee on Governmental Affairs
""Terrorism Financing: Origination, Organization, and Prevention.""
July, 31 2003

Senate Committee on Governmental Affairs

John S. Pistole
Deputy Assistant Director
Counterterrorism Division
Federal Bureau of Investigation

July 31,2003

"Terrorism Financing: Origination, Organization, and Prevention"

Good morning Madam Chair Collins, Senator Lieberman, and other distinguished members of
the committee. It is an honor to testify before this committee regarding the FBI's efforts in
identifying, tracking and dismantling the financial structure supporting terrorist groups.

Prior to the events of September 11, 2001 (9/11), the FBI had no mechanism to provide a
comprehensive, centralized, focused and pro-active approach to terrorist financial matters. While
the FBI examined financial records at the time of previous terrorist attacks, as part of the
investigation into each of the attacks, the events of 9/11 identified a critical need for a more
comprehensive, centralized approach to financial matters. The Terrorist Financing Operations
Section (TFOS) of the FBI's Counterterrorism Division was formed, after 9/11, in response to
this critical need. The mission of the TFOS has since evolved into a broader strategy to identify,
investigate, prosecute, disrupt and dismantle incrementally, all terrorist related financial and
fund-raising activities.

Identifying, tracking and dismantling the financial structure supporting terrorist groups is critical
to successfully dismantling the organizations and preventing future terrorist attacks. As is the
case in most investigations, locating and "following the money" plays a critical role in
identifying those involved in the criminal activity, establishing links among them, and
developing evidence of their involvement in the activity.

Terrorists, their networks and support structures, require funding in some form to exist and
operate. Whether the funding and financial support is minimal or substantial, it usually leaves a
financial trail that can be traced, tracked, and exploited for pro-active and reactive purposes.
Being able to identify and track financial transactions and links after a terrorist act has occurred
or terrorist activity has been identified, represents only a small portion of the mission; the key

http://www.senate.gov/~gov_affairs/index.crm?Fuseaction=Hearings.Testimony«&HearingID=... 8/4/03
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Full Licensed Name: Mark Alan Flessner
Full Former name(s): None
Date of Admission as Lawyer
by Illinois Supreme Court: March 13, 1987
Registered Business Address: Sonnenschein Nath & Rosenthal
8000 Sears Tower 233 S. Wacker Dr.
Chicago, IL 60606-6342
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 ark Flessner Page 1 of2

:Sonnenselitinh

Mark A. Flessner
mflessner@sonnenschein.com
Partner

Practice Area(s):
Litigation and Business Regulation

Professional Profile:
Mr. Flessner, a former federal prosecutor, was at the United State's
Attorneys Office in Chicago for 12 years. He has led major
investigations of highly sophisticated and complex financial fraud. His
8000 Sears Tower prosecutions include public corruption, bank fraud, insurance fraud,
Chicago, IL 60606 white collar crime, gangs and narcotics cases. He has traveled
(312)876-3136 extensively investigating international money laundering, terrorism and
cases involving national security. Mr. Flessner's experience includes
more than 25 complicated federal trials and almost as many briefs and
oral arguments before the Seventh Circuit Court of Appeals. He also
has extensive experience in civil litigation, having defended cases
involving the Federal Tort Claims Act, employment discrimination,
medical malpractice, the False Claims Act and other general civil
litigation.

Mr. Flessner advises companies on corporate risk management, and he

assists clients when faced with government scrutiny, whether criminal
or regulatory. Mr. Flessner is an accomplished trial lawyer with more
than 15 years of trial experience.

Mr. Flessner has served as an instructor at the U.S. Attorney General's

Advocacy Institute. He is admitted to the bar in Illinois; U.S. District
Court, Northern District of Illinois (including the Trial Bar); U.S. Court of
Appeals for the Seventh Circuit.

Admitted to the Bar:

Illinois

Awards:
Federal Bureau of Investigation, United States Drug Enforcement
Administration, Internal Revenue Service, United States Postal
Inspection Service, Chicago Police Department, United States
Department of Justice, Directors Award for Superior Performance from
the United States Attorney General

Organizations:
Chairman, Greater Chicago Food Depository Finance and Legal
Community fundraiser; Chairman of the Transportation Advisory Board,

http://www.sonnenschein.com/website/attorney.nsf/AHByDocID/128C950E9EC7D84F8625... 9/30/03