$50-$60 Billion Laundered from US/other nonprofits into illegal West Bank colonies creates threat of terrorism backlash

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."

"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."

"Despite 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."

"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."

"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."

IRmep sends a follow-up letter to Barry M. Sabin, Chief of the Counterterrorism Section urging law enforcement:

"Many 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 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  functions. 

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."

"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 report reveals how violence, land theft, and hopelessness generated by nonprofit money laundering fuels terrorism blowback against the United States.

"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 Committee (AIPAC)...."

"Israel 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 funding... "

"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."

"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. 

"By 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."