Why FBI is following the money in Times Square bomb case

But counterterrorist efforts have made it increasingly difficult for Al Qaeda and its associated groups to send money through the regular banking system. Increasingly the US and other nations have turned their scrutiny to the more informal hawaladars, said David Cohen, assistant secretary for terrorist financing at the US Department of Treasury, in January remarks before the Council on Foreign Relations.

“As we have become more successful in preventing the abuse of the formal financial system, illicit finance has increasingly migrated to these other transmission techniques,” said Mr. Cohen.

According to Cohen, Al Qaeda’s traditional sources of funds, such as donors and charities in Saudi Arabia and other Gulf countries, have dried up due to world counterterrorism efforts. Top Al Qaeda leaders in recent months have taken the unusual step of issuing public pleas for funds.

“Al Qaeda is in its worst financial state in years,” Cohen said in April at a luncheon sponsored by the Washington Institute for Near East Policy.

According to news reports, Al Qaeda has even begun charging some recruits for training. The going rate for an AK-47 rifle, ammunition, and grenades is about $1,200.

But terrorist attacks in Western countries do not cost a lot of money. The 2004 Madrid subway bombings cost a total of about $10,000, for instance, according to an estimate by the Financial Action Task Force, an intergovernmental antiterrorist group.

Regardless of the amount, US counterterrorism officials still take a cue from what Deep Throat told Washington Post reporter Bob Woodward during the Watergate investigation: “Follow the money.”

These days, that's a challenge.

“The international community faces a daunting challenge in confronting global terrorism financing," Cohen told the Washington Institute luncheon. "The task is especially tough in today’s environment, with money constantly crossing borders and rocketing around the globe.”

Related:

FBI raids in Times Square probe: What were they looking for?

Times Square bomb: Did Pakistan Taliban send its 'C' team?

Faisal Shahzad case intensifies scrutiny of links between Pakistan militant groups

Previous

1 | 2