International Financial Crime Law - Research Paper Example

Abstract Terrorism is a highly organized form of crime that is conducted by individuals who are not satisfied with the policies of the international community an more so the policies of the United States and its allies. The communities in which the criminal organizations come from play a major role in their existence. Terrorists usually compromise with some of the community leaders in order for them to be allowed to live amongst the community members. Some of the leaders may even offer financial support to them. This has been the major cause of proliferation of terrorist activities which have been a major security threat especially for the United States. The supporters of terrorist activities are usually governments as well as wealthy business people. They provide an operation base for the terrorists and also offering technical support. The United Nations, the International Community as well as the United Kingdom have made significant efforts to ensure that terrorist funding is eradicated in order for them to lack finances for their operations. This has been accomplished through policies and legislation to root out terrorism. Introduction The terrorist attacks that occurred in the United States on 11th September 2001 were a reflection of the highly organized and sufficiently funded terrorist groups that have been targeting the United States, its allies as well as other nations that do not support terrorism. It is believed that the attacks were masterminded and conducted by the al-Qaeda terrorist group under the leadership of Osama Bin Laden. It began with the hijacking of four airplanes with passengers on board. The Twin Towers were the first to be attacked as the terrorists deliberately crashed on them. The second crash was on the pentagon while the fourth plane failed to reach the target which was believed to be Washington D.C. These series of crashes caused the death of more than 2900 people. This is an indication of how determined and organized the terrorists were. It was realized that the terrorists had support in terms of finances and operation bases by some countries that dislike the U. S. foreign policies (The 9/11 Commission 2004 pp. 169-173). In order to prevent such attacks in future, the United States had to respond through setting out strategies to suppress the terrorist operations as well as their supporters. The attack was not only a problem of the United States, but also a problem of the international community which was represented by the many citizens of other countries who perished in the attack. The International Community, the United States of America and the United Kingdom were therefore obligated to make legislative responses and policies for prevention of the funding of terrorism since the terrorist attacks of September 11 2001. This was seen as one way of breaking the terrorist networks internationally. This essay is a critical evaluation of these responses, and their effectiveness in preventing terrorist funding. U. S Policy Response The United States responded through developing policies to first ensure that all the operating grounds of terrorists as well as their supporters were suppressed. This led to the beginning of the legal operations of eliminating terrorists dubbed “war on terrorism”. It began with the high potential terrorist base Afghanistan, which was to be ardent about al-Qaeda and other terrorist operations, bringing the Taliban rule to an end. The “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism” (Ryder 2007 pp. 821-850). . Act of 2001 was enacted, in order to enable the state agencies to investigate communications through telephone, electronic mail, records of finances and health. These investigations are significant in identifying cases of terrorist operations. The act reduced the limitations of intelligence from foreign countries for converging within the U.S. Through it, the head of the treasury who is the secretary has control over all the financial deals, especially if there are foreigners involved. This is important in ensuring that money moving in and out of the U.S. can be tracked to establish whether it is meant for terrorist funding. The act is also important in helping the authorities in regard to making judgments on whether to deport foreigners who are suspected to be involved in terrorism activities. This act also is inclusive of local terrorist activities, which is significant in ensuring that terrorists do not take advantage of U. S. nationality to make it easy for them to acquire funding. Monitoring was to be intensified on mainly the groups of radical Muslims who posed a major threat especially for the reason that their involvement in foreign countries in political matters continues to increase. On the other hand, the provisions of the act helped in tracking communications between the terrorist networks which continue to develop strong links connecting various terrorist groups internationally. These connections have been useful for them in acquiring funds to finance their operations. They have also been useful in helping them to share useful martial training, technology as well as guidance in political matters (Ryder 2007 pp. 821-850). Through these investigations as provided in the ‘USA PATRIOT’ act concerning information flow among the terrorists, it was established that funding for the terrorist groups facilitates acceptance of their radical views through funding charity and other activities that make them known to the people who are their main targets, especially the Muslims. This is what has been established to create a safe haven for their operations in Muslim states. It was discovered that they have managed to secure funding through NGOs, as well as other illegal business such as dealing in outlawed drugs, extortion and abduction of people, mainly Americans whom they release in exchange for money. Others include hijacking ships. These investigations also established that the Al-Qaeda terrorist group acquires funding through massive arrangements for raising finances through charities, affluent supporters, authorized businesses, affiliations with banks mainly within the Persian Gulf (Elagab 2006 pp. 38-44), and activities involving fraudulent deals and smuggling. In a bid to strengthen the fight against terrorism, the government responded through the establishment of the “Department of Homeland security under the Homeland Security Act of 2002”. (Patrick and Rush 1997 pp. 31-36). This department is significant in conducting research on threats from terrorists, organizing defense as well as rapid response in cases of attack. This was a new development from the old “National Security Act of 1947”. p. 35. In regard to global terrorism funding and terrorist groups, the policy responses are largely military oriented. After the September 11 attacks, U.S. troops were assigned various regions internationally to carry out operations aimed at uncovering the underground terrorist groups and investigating the sources of funds for these groups. Afghanistan and Iraq were some of the countries where military intervention was made to remove the regimes that were suspected to have their support behind terrorist groups. The U.S. policies regarding terrorist attacks changed from one of prevention of terrorist activities to thorough unearthing and stopping any of these activities through military action. This came after the attacks were associated with the Al-Qaeda. This change was commonly known as the then president ‘Bush Doctrine’, which was made an ‘international customary law’, soon after the attacks. “It was supported by the UN Security Council, as well as the General Assembly”. (Langille 2004 p. 149) Within a short time after it became operational, many countries that were not in favor of terrorism supported the doctrine that became law through an approach of instant custom. The Case Law helped the U.S. to eradicate underground terrorist operations. For the countries that support terrorist groups through funding and provision of a haven for their operations, the United States put sanctions in order to make sure that such nations do not benefit from the assistance from the U.S. government to developing and third world countries. This is a significant policy strategy since U.S. being a major contributor of aid to many less developed countries; it has a significant influence over the other developed countries. Since regimes of the developing and third world countries need this aid to support poverty eradication, they have to adhere to the requirements of the U.S. in regard to terrorism eradication. Apart from financial assistance, the U.S. can not provide military support for the purpose of peace keeping in the countries that support or finance terrorism. More over, the U.S. went further in efforts of incapacitating the terrorist networks through to freeze the assets of known supporters and financers of terrorism. “The secretary of treasury was conferred powers of imposing sanctions in banks world wide”. (Patrick and Rush 1997 pp. 31-36). This was a major draw back for the terrorists who got their finances from the supporters who were denied access to significant amounts of assets. For example more than 20 affluent supporters of Al-Qaeda had their assets frozen by banks world wide through the influence of the United States in 2001. Another important policy response of the United States was cooperation in international interests especially in regard to enforcement of international laws. Other areas in which cooperation was seen to be significant were; international trade whereby it is easy to establish the ongoing transactions across boundaries, participating in activities involving foreign intelligence which helped to a large extent in identifying the terrorist networks in various parts of the world. The U.S. administration sent agents from the FBI to more than 50 countries in order to assist in unearthing terrorist activities internationally. This helped them to understand the framework of terrorist networks, and their manner of recruiting members. Within these countries, there are personnel hired for the purpose of providing information on terrorist activities (Ryder 2007 pp. 821-850). The U.S. administration also enhanced terrorism eradication through supporting extradition of the suspected terrorists. However, this was faced with many challenges since some of the countries failed to allow extradition of their citizens. This led to the continuous negotiations that have been going on between various governments and the U.S. administration regarding this issue. It is mainly hampered by the abolishment of capital punishment in many countries, a practice that is still ongoing in the U.S. The administration has been compelled to relax its stance on crimes punishable by capital sentence, especially due to the fact that most of the offenders are normally politically oriented terrorists which form a basis for failure of other countries to extradite their nationals (Mitsilegas 2007 pp. 119-140). Other policy responses such as employing diplomacy in promoting international anti-terrorism associations have been successful in preventing terrorist funding since the attacks of September 11. A significant situation whereby the diplomatic relations succeeded in eradicating terrorism is the mission of the U.S. in removing the terrorist supportive regime in Taliban. Policies on public diplomacy have been useful in creating a negative attitude towards terrorism within the public domain. The media has played a significant role in promoting the desire for people and governments to help in the fight against terrorism. This policy led to the establishment of the post of “Undersecretary of State for Public Diplomacy and Public Affairs” (Shaw 2007 pp. 469-486), which is significant in providing an avenue for listening to the people’s concerns and contributions in regard to terrorism. International Community The international community has been dedicated in prevention of the proliferation of terrorist activities. This is mainly because even if the attacks are directed against U.S. citizens, they are also devastating to the international community since citizens from other countries suffer losses similar to the U.S. nationals. For example the September 11 attacks caused the deaths of citizens from other countries, although majority was U.S. citizens. After these attacks, the UN Security Council made a resolution requiring terrorist activities and terrorist funding to be regarded as criminal offences. This policy aimed at mobilizing states to suppress the funding or allowing terrorists to establish or base their operations within them. It was also meant to encourage states to provide information regarding any suspicious groups of terrorists or people engaging in activities that indicate their actions. Terrorism was classified as a crime against humanity in the “International Criminal Court and Terrorism”. (Casey, 2000 p.81). The September 11 attacks were largely criticized across the international community. The quick response led to the resolution that could pave way for military intervention. This was supported by the UN Security Council and many other members of the UN. It was agreed that all member states were to enhance their national laws and policies to ensure that terrorism does not thrive in any of them. “The 1368 and the 1373 UN resolutions legalized military action against terrorism”. (Katrina and Steve 2008 p 96). According to the UN resolutions, member states were to adhere to the resolution 1373, whereby they were to ensure that criminal acts of terrorism as well as funding and support were suppressed. This would be done through reviewing the existing legislations to cover terrorism in a wider perspective, such as inclusion of the funding aspect, as well as allowing terrorism operations to take place within the state. They were to make sure that terrorists are prevented from acquiring arms, and also they were supposed to cooperate with other states in order to help them accomplish these policies. The Counter Terrorism Committee was established as a tool for monitoring the adherence of states in regard to these policy objectives. This committee was to be in charge of assessing the implementation of the agreements resolution 1373, analyze and present findings to the UN Security Council for deliberation (Mark 1999 pp. 31-33). This was meant to contain terrorist activities mainly through cooperation amongst states through which important information can be shared in regard to terrorist establishments, and improving the capacity of states to ensure that terrorists do not acquire the necessary factors needed for them to thrive. Members of the UN were supposed to follow a program that consisted of many stages designed by the Counter Terrorism Committee. (Giddens 2000 p. 71) observes that in the first 90 days, they had to submit their present legislations and other measures that lie within the executive meant for combating terrorism. Secondly, the UN the member states were to be assisted in strengthening their institutions for the purpose of combating terrorism through provision of assistance. They responded rapidly to the resolutions of the UN, making it possible for measures to curb terrorism to be put in place in an appropriate time. The developed countries in the G-8 responded through developing plans which were to be implemented in through the creation of a “Counter Terrorism Action Group” which was significant in helping other countries to strengthen their capacity to fight terrorism. This was done through engaging other nations and helping them to understand the measures for combating terrorism. This also involved offering assistance for the poor nations that are unable to fight terrorism. This was meant to build their capacity in developing and implementing strategies for the fight against terrorism (Binning 2002 pp. 737-749). The member states were also to participate in then international efforts for incapacitating terrorists through hindering their funding by means of freezing the accounts of suspected terrorists and terrorist supporters. This was a significance way of preventing terrorist groups to access massive funds for use in their activities. The Al-Qaeda that is led by Osama Bin Laden as well as the Taliban in Afghanistan were the major targets of this policy since their actions were related to receiving support from wealthy groups as well as the Taliban providing a haven for terrorist operations. This policy led to a successful freezing of more than $200 million worth of terrorist’s assets globally (Mark G. 2005 p.67). The UN spearheaded the development of significant conventions involving the international community for the purpose of promoting the antiterrorism agenda. These conventions are useful in enhancing the commitment of member states in prosecution of terrorist suspects as well as extraditing them for prosecution. These crimes included airplane and ship hijacking, kidnapping people for ransom, and the attacking of people on diplomatic missions (Galeottie 2005 p. 66) United Kingdom Being one of the closest allies of the United States, the United Kingdom’s response towards the fight against terrorism was wide ranging. It plays a significant role in the implementation of strategies to suppress terrorist funding. The response after the September 11 attacks were legislative, politically oriented and economic efforts to combat terrorism. Under the policy of eradicating terrorist support and funding, the British government contributed significantly to the enforcement of “the resolution 1441 of the UN Security Council in Iraq”, whereby troops were sent to aid in the Iraqi conflict which was seen as a major supporter of terrorism. More over, the nation continues to play a significant role in the construction efforts and ensuring that terrorists no longer find Iraq and other countries such as Afghanistan to be a haven for terrorism operations (Piers and Messerschmidt 2000 p. 74). The United Kingdom cooperated with the U.S. in efforts to protect airline flights from terrorist attacks. The “Joint Terrorism Analysis Center was established in the UK”. (Manuel 2000 pp. 169 – 183). It was meant for the purpose of evaluating and circulating critical information regarding terrorist activities locally and abroad. The center was to operate in collaboration with the U.S for the purpose of enhancing the fight against terrorism. The UK mobilized its resources in order to help in eliminating terrorist groups in activities such as participation in joint exercises to root out terrorism The events of September 11 led to increased investigations and stepping up of intelligence gathering activities in the UK. These were mainly aimed at the terrorist groups operating under the extremist Muslims within the UK. The government’s policy was to disrupt the terrorist structures in order to lower the threat of terrorism. This policy was effective in reducing terrorist activities, since in two years from September 11 attacks, the law enforcers managed to make arrests of more than 500 suspected terrorists. These efforts led to the unearthing of underground terrorist operatives in North Africa. These were conducted by well connected terrorists who engaged in the transportation of toxic substances to the United Kingdom. In the same period, two major fundraisers of the Al-Qaeda were arrested, and convicted in the United Kingdom (Philip 2004 p. 56). This was a major step towards eradicating funding of the Al-Qaeda. Other inciters of race related violence were also convicted. The UK set up policies aimed at offering training to developing nations for the purpose of enhancing their capacity to deal with cases of terrorism. The objectives of these policies were to be accomplished through budgetary allocations amounting to £3.24 million to offer financial assistance to these countries for building their capacity to counter terrorist activities. The funds were meant for supporting the experts to be present in the countries that are vulnerable to terrorism. They were also meant to offer support to the counter terrorism committee of the United Nations, and other initiatives to counter terrorism. Anti-terrorism policies were mainly aimed at combating terrorism in Northern Ireland where terrorism activities were rampant. These policies helped in the disruption of planned attacks by terrorists. The UK has also played a significant role in the development of agreements and conventions aimed at curbing terrorism. It has been active in the campaigns against terrorism in the European Union, and NATO (Peter 1996 pp. 21-48). Conclusion Terrorists are usually determined to disrupt the normal functioning of government systems especially the ones allied to the United States. They normally do not have sufficient technology and finances to maintain operations on their own, hence the dependence on supporters and well wishers for assistance in finances and technology. The sympathizers of terrorism are wealthy people who have either acquired their wealth through legitimate and illegitimate business and other activities such as extortion and hijacking for ransom have been the major sources of finances. The September 11 attacks motivated the U.S., the International Community as well as the United Kingdom in ensuring that the underground terrorist groups were unearthed. There were numerous legislative and policy responses that helped the players in the fight against terrorism to accomplish their goal. Many suspected terrorists have been convicted and their assets as well as those of their supporters frozen in a bid to counter the funding of terrorist groups. Many countries have reviewed their legislation and they have also improved their ability to fight against terrorism with the assistance of the developed countries such as the United States and the UK. Attacks have reduced significantly due to these policies, and more effort is still being put in prevention through negotiation and improvement of communication. Bibliography 1. Binning P. 2002. ‘In safe hands? Striking the balance between privacy and security – anti-terrorist finance measures’ European Human Rights Law Review 6, 737-749. 2. Casey, R. 2000. Memories of the Present: A Sociological Chronology of Modern Justice Systems, Institute of Public Administration, Dublin 3. Elagab O. 2006. Control of terrorist funds and the banking system. Journal of International Banking Law and Regulation, vol 21, 1, 38-44. 4. 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