U.S. authorities — at both the Treasury and Justice departments are struggling to understand how the financing works and how terrorists move and conceal their assets, says a report by the General Accounting Office, the investigative arm of Congress.
Details of the GAO study were reported late Thursday on Web page of The New York Times, and a congressional staffer confirmed the details. The report had been request by Sens. Richard Durbin, D-Ill, and Charles Grassley, R-Iowa. It was expected to be released Friday.
The report among other things reiterates lawmakers' concerns that the two federal departments and other government agencies aren't doing enough to fight terrorist financing.
Citing those problems, Congress last month voted to create a new intelligence agency in the Treasury Department as part of a bill authorizing 2004 intelligence programs. A report accompanying that bill said that "coordination on terrorist financing issues within Treasury, and between Treasury and the intelligence community, while improving, is currently uneven and disjointed."
In October, Richard A. Clarke, a former top anti-terror official in the Clinton and Bush administrations told the Senate Banking Committee that efforts to track terrorism financing have been complicated by the reorganization of some federal agencies after the Sept. 11, 2001, attacks and by poor coordination between the government and financial institutions.
The Treasury Department has said it has made progress in tracking terrorist financing since the attacks, but the campaign is a long-term effort. Since the attacks, 1,439 accounts containing more than $136.7 million in assets belonging to al Qaeda and other terrorists have been frozen worldwide, the department reported in September.
The GAO report said terrorists are using methods that are hard to detect to move and launder money. In one example, when investigators looked into suspected terrorists who were raising money by selling counterfeit household appliances, the suspects began marketing their own brand, the Times said.