US Treasury Department
response to 9/27/2007 FOIA:
"Unfortunately, we were unable to locate
or identify any responsive records pertaining to..internal
reports about Treasury Department investigations triggered by
public revelations that U.S. charitable funds flows are used to
illegally confiscate Palestinian lands and commit crimes
overseas…Meeting minutes of key Treasury Department officials
charged with combating money laundering conducted in Israel and
the U.S. dealing with the Sasson report money laundering issues
especially those with a focus on U.S. … organizations managing
WZO money laundering."
||New York US Attorney Michael J. Garcia
receives a formal criminal complaint on US-Israel charitable money
laundering activity in his jurisdiction, but refuses to comment
about possible law
"We will review the information you have
provided, but as a matter of course we do not respond to
inquiries regarding intended enforcement actions, if any."
||Reuters reports on US
nonprofits that continue to benefit from tax exemptions while
raising funds for West Bank colonization.
its stated policy against settlement growth, the United States
grants tax-exempt status to organisations that openly raise
money to aid Jewish settlers in the occupied West Bank."
||Internal Revenue Service receives
an IRmep criminal complaint
about US nonprofit organizations
laundering money and benefitting from IRS
granted tax exemption, but
refuses to comment on enforcement action:
"The Internal Revenue Code includes taxpayer
privacy provisions enacted by the Congress to protect the
privacy of tax returns and tax return information of all
taxpayers. Therefore, I cannot comment on what action, if
any, we may take regarding the information you provided."
||IRmep sends a Freedom of
Information Act (FOIA) request seeking information into whether the US
Treasury Department is cracking down on indirect terrorism
generated by money laundering from the US to the West Bank.
The Treasury Department's Terrorism and Financial Intelligence
office rejects IRmep's FOIA inquiry under the Bank Secrecy Act.
"The statutory provision
that specifically exempts records collected under the Bank
Secrecy Act from disclosure under the FOIA can be found in
Section 5319 of title 31 of the United States Code."
the DOJ official designated for follow-up, is transferred
to the DOJ's
sends a follow-up letter to Barry
M. Sabin, Chief of the Counterterrorism Section urging law
agree with Sasson and IRmep that massive illegal activities are
occurring and continue to place America at risk. However,
cynics believe that while this activity and connection is easily
auditable and could be shut down by applying existing American
laws, that nothing will be ever be done about it. They've told
me that equal application of US law is not possible in such
politically sensitive cases. They've stated what while a hair
trigger DOJ response is all but guaranteed upon the slightest
evidence of Islamic charity involvement in direct or indirect
terrorism generation, that no such tripwire exists for similarly
involved Christian, Jewish, or Zionist organizations."
"We've reached out to many groups about this
indirect terrorism generator because we continue to believe that
US justice is blind, and that indirect terrorism generators will
soon become a US law enforcement priority. I hope that the DOJ
Counterterrorism Section will begin to confront the indirect
terrorism generators our research has identified."
||Barry M. Sabin, Chief of
the Counterterrorism Section officially thanks IRmep and
confirms commitment of officials sent to the briefing:
appreciate your hard work in researching links between money
laundering and Middle Eastern violence as well as the
implications on the security of the United States.
As you know, the Department of Justice is very involved in
efforts to ensure that tax exempt entities are not involved in
funding violence or engaging in other non-charitable
Two members of my staff
recently attended a briefing given by the Institute for
Research: Middle Eastern Policy at which you spoke on these
issues and obtained a copy of the distributed materials. I also
understand an attorney from the Counterterrorism Section has
recently been in touch with you regarding your work.
Please do not hesitate to contact us if you have any additional
questions or concerns."
the National Interest and the
Research: Middle Eastern Policy convene a public meeting for
the US Department of Justice and US Treasury Department in the
Russell Senate Office Building. DOJ officials including
Justin Dempsey and David Bose are briefed about how US money
laundering toward West Bank settlement is illegal and an indirect generator of terrorism blowback against the
||FBI Director Robert Mueller, US attorney Elliot
Spitzer, at the US Department of Treasury Foreign
Assets Control official Julia Philip, US Department of
Treasury Terrorist Financing and Financial Crime Division
head Carlos Zarate
to enforce Title 18, Part I, Chapter
45 from US criminal code which prohibits
US-West Bank money laundering:
"Whoever, within the US, knowingly begins
or sets on foot or provides or
prepares a means for or furnishes money for, or takes part in,
any military or naval expedition or enterprise to be carried on
from thence against the territory or dominion of any foreign
prince or state, or of any colony, district, or people with whom
the US is at peace, shall be fined under this title or
imprisoned not more than three years, or both."
||The Institute for
Research: Middle Eastern Policy issues the report "US Tax-Exempt
Charitable Contributions to Israel: Donations, Illegal
Settlements and Terror Attacks against the US" (PDF) to
key American government
officials and the public.
The report reveals how
violence, land theft, and hopelessness generated by nonprofit money
laundering fuels terrorism blowback against the United States.
||A USA Today article "No one knows full costs of
Israel's settlement ambitions" reports
upper limit of money laundering at $60 billion while raising
questions over US
tax exemptions and stealth
AIPAC lobbying for
reduced aid penalties on activity:
"Vice Premier Shimon
Peres estimates Israel has spent about $50 billion since 1977,
when the hard-line Likud government took over from his Labor
party. Other former finance ministers and government officials
don't discount a price tag — commonly floated but never
documented — of $60 billion..."
"Israel's effort since the 1967 Mideast war to
fill the West Bank and Gaza Strip with Jews has grown from the
scattered actions of zealous squatters into a network of 142
towns and villages that house nearly 240,000 people...."
"In 2003, when Israel was granted $9 billion in
loan guarantees over three years, the cut was $289.5 million.
Officials familiar with the issue, and speaking on condition of
anonymity, say that low figure was reached with the help of the
influential pro-Israel lobby, the American Israel Public Affairs
also used private U.S. donations for which it secured U.S.
tax-exempt status, said David Newman, a political scientist at
Israel's Ben Gurion University who researched settlement
"U.S. tax laws don't exempt
donations for political activities such as settlements. Israel
separated the World Zionist Organization from the
quasi-governmental Jewish Agency, a move that allowed donors to
inject money into settlements without losing tax exemptions. In
reality, the two groups operate under one umbrella, with the
same officials, departments and administrators overseeing the
activities, Newman said."
||University of Chicago
researcher Robert A. Pape compiles a database of 315 suicide
terrorism campaigns around the world from 1980 through 2003, and
462 individual suicide terrorists. He finds that the major
motivation of such attacks was "to
compel modern democracies to withdraw military forces from
territory that the terrorists consider to be their homeland."
||The Jewish Daily Forward reports that US
nonprofit organizations are directly tied to entities involved in illegal
settlement money laundering:
"Hadassah, B'nai B'rith, and offshoots
of the Reform and Conservative movements. American groups
control 30% of the organization's main governing bodies,
including the World Zionist Congress which is convened in
Jerusalem every four years."
The report also mentions the Jewish Agency being in
charge of a $420 million network of programs funded by overseas
charities and at the center of illegal settlement financing.
||The former head of the
State Prosecution Criminal Department Talia Sasson delivers an
government commissioned report (Summary)
that finds quasi government bodies diverted funds to
establish West Bank colonies that are illegal under Israeli and
||Responding to heavy AIPAC
lobbying the White House creates a new "Terrorism and
Financial Intelligence" office at the US Treasury Department
toward "countering threats to U.S. national security and
protecting the international financial system from abuse."
||The 9/11 Commission Report
finds US policy toward Israel was a major motivator of the 9/11
terrorist attacks against the United States. Page 147:
his own account, KSM's [Khalid Sheikh Mohammed] animus toward the
United States stemmed not from his own experiences there as a
student, but rather from his violent disagreement with U.S.
foreign policy favoring Israel."
||The USA Patriot Act
establishes targeted mechanisms for interrupting financial flows
used by terrorists.
Financial Action Task Force on money laundering (FATF)
is established by a
G-7 Summit in Paris in 1989.
It defines money laundering as actions such as false accounting,
misuse and misdirection of legitimate funds toward illegal ends.
||The US passes the "Bank
Secrecy Act of 1970" or "Currency and Foreign Transactions
Reporting Act" which requires US financial institutions to
detect, report and prevent money laundering.