U.S. Designates Muslim Group as Terrorism Supporter (Update1)
(Adds details from Treasury Department in ninth paragraph.)
Washington, Nov. 19 (Bloomberg) -- The U.S. Treasury
Department accused the third-biggest U.S. Islamic charity of
supporting Osama bin Laden's al-Qaeda network and other terrorist
organizations.
Benevolence International Foundation is the third Muslim
charity labeled by the U.S. as a financer of terrorism. The U.S.
already has frozen assets of the Holy Land Foundation, the
nation's biggest Muslim charity, and Global Relief Foundation, the
second-biggest. The government said it will ask United Nations
member states to freeze Benevolence International's assets.
``UN designation of these financiers of terror will cut off
their access to the global financial system and strip them of
their ability to fund evil,'' Treasury Secretary Paul O'Neill
said.
Designating Benevolence International as a terrorism
supporter is the latest U.S. attempt to cut off funding of al-
Qaeda and other groups, an effort the UN described in August as
``exceedingly difficult.'' O'Neill said in September that the U.S.
and allies had blocked $115 million in worldwide terrorist
funding, and the U.K. said it had frozen another $100 million.
Holy Land and Global Relief have denied aiding terrorists and
criticized the U.S. seizure of assets. An attorney for Palos
Hills, Illinois-based Benevolence International didn't immediately
return a call seeking comment. The group's executive director,
Enaam Arnaout, has denied al-Qaeda ties and has pleaded innocent
to criminal racketeering and money laundering charges. He faces
trial in February.
UN Sanctions Sought
The closely related Benevolence International Fund in Canada
and Bosanska Idealna Futura in Bosnia, which are incorporated
separately, also were named as supporters of terrorism. O'Neill
said the names of those groups also will be referred to the UN
sanctions committee.
The U.S. froze Benevolence International's assets in
December, and the foundation has filed a lawsuit challenging that
action. A federal judge in September threw out perjury charges
against the Palos Hills, Illinois-based group and Arnaout.
Less than three weeks later, a grand jury in Chicago indicted
Arnaout on charges he engaged in racketeering and money laundering
to provide financial support to al-Qaeda. He may be sentenced to
up to 90 years in prison if convicted, prosecutors have said.
The Treasury Department said there's ``substantial evidence''
of a relationship between Arnaout and bin Laden, starting in the
1980s. Evidence includes letters between the two and a photograph
of Arnaout and bin Laden together. The U.S. claims Arnaout worked
with al-Qaeda to buy rockets, mortars, rifles and bombs to
distribute them to terrorist camps.
Benevolence International was incorporated in Illinois in
1992, and it operates around the world in Bosnia, Chechnya,
Pakistan, China, Russia and other countries.
--William McQuillen in Washington (202) 624-1849, or
bmcquillen@bloomberg.net Editors: Hendrie, Asseo.
Story illustration: For more news on the Sept. 11 terrorism
attacks and the U.S. response, see: {TERROR <GO>}. To read the
Treasury Department's announcement of the designation, see:
treas.gov
For a series of functions that will call up legal stories from
Bloomberg: {CNP 01340820105 <GO>}. |
