Officials: Technology can help identify terrorism financing

Federal officials in Miami on Monday detailed efforts to stop the illegal financing of terrorist networks and urged the use of technology in the process.

"Just as criminals benefit from the enhancements in technology, so must the anti-terrorist financing community," said Lee Jeffrey Ross, a senior adviser at the Treasury Department's executive office for terrorist financing and financing crimes. "Technology holds one of the keys to our success in the financial war on terrorism."

He and other officials testified to a joint field hearing of the House Government Reform Technology, and Government Efficiency and Financial Management subcommittees.

Ross said the use of technology must include the ability to gather and synthesize all available information "to proactively identify possible instances of the raising, movement and use of illicit funds." More than ever before, he added, the government requires financial institutions to produce data and information.

He named several initiatives, such as the Financial Crimes Enforcement Network (FinCEN), which is developing technology to let financial institutions report suspicious transactions more easily and quickly.

FinCEN is developing a system called BSA Direct to manage a database for the Bank Secrecy Act. The goal is to provide users with Web-based, secure access that allows for faster and easier searching. In addition, Treasury continues work to assist financial institutions to develop software to better identify potential terrorist-financing activities, Ross said.

Since the Sept. 11, 2001, terrorist attacks, FinCEN has supported 2,962 terrorism investigations, and the hotline it established has resulted in 789 anti-terrorism tips. Since the attacks, FinCEN has made 519 case referrals to law enforcement. Furthermore, financial institutions have filed 2,842 reports on suspicious activities.

Bruce Townsend, deputy assistant director of the office of investigations at the Secret Service, said that the agency has formed technology task forces between the public and private sectors and that it specializes in electronic crimes. It also uses technology to share information between its 3,200 officers, and provides information and resources to state and local law enforcement.

The E-Information Network is a Secret Service Web site specifically for approved law enforcement officers and investigators at financial institutions. The Secret Service also has created various electronic training materials.

Overall since the attacks, the United States has frozen the assets of 344 individuals and entities linked to terrorism, according to George Glass, director of the State Department office of terrorism finance and sanctions policy. It also has supported the submission by dozens of countries of 244 al Qaeda-linked names for inclusion in the U.N. list of frozen assets, which requires countries to act against the names, he said in prepared remarks.

The United States has frozen approximately $137 million in almost 50 countries, he said.

The Homeland Security Department's Bureau of Immigration and Customs Enforcement has deployed four teams to Iraq since March and is investigating suspected violations of U.S. laws, including weapons of mass destruction, illegal procurement of U.S. technology and money laundering, said Marcy Forman, deputy assistant director of the financial investigations division.