T1 B26 Matt Levitt Fdr- Articles and Testimony- 1st Pgs for Reference 629

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From Within: Saudi Funding of Islamic Extremist Groups Undermining US Interests and the ... Page 1 of 8

Print this page.The Washington Institute for Near East PolicyTESTIMONY OF MATTHEW LEVITTSENIOR FELLOW IN TERRORISM STUDIES, THEWASHINGTON INSTITUTEFORNEAR EAST POLICY

BEFORE THE SENATE JUDICIARY COMMITTEE SUBCOMMITTEE ON TERRORISMUNITED STATES SENATE"Subversion From Within: Saudi Fundingof Islamic Extremist GroupsUndermining USInterests and the War on Terror from within the United States"September 10, 2003

INTRODUCTIONWell into the war on terrorism, Saudi Arabia continues to serve as the capital of international terroristfinancing. Through groups like the Muslim World League (MWL), the International Islamic Relief Organization(IIRO), the al Haramain Islamic Foundation, as well as the Islamic Affairs Bureaus located at Saudiembassies and consulates worldwide, the Saudis continue to fund radical Islamic groups supportive of, orengaged in, international terrorism.TIER 1: FINANCING TERRORISMSome cases are both clearcut and extreme. For example, after his arrest in Indonesia on June 5, 2002, Omaral-Farouq, al-Qaeda's operational point man in Southeast Asia, told his interrogators that al-Qaedaoperations in the region were funded through a branch of al-Haramain. According to al-Farouq, "money waslaundered through the foundation by donors from the Middle East."[l]In another case, Italian prosecutors revealed that "Syria has functioned as a hub for an al-Qaeda network"run out of Europe and linked to prominent al-Qaeda operative Abu Musab al-Zarqawi.[2] Transcripts ofoperatives' conversations first revealed in the Los Angeles Times "paint a detailed picture of overseers inSyria coordinating the movement of recruits and money" between cells in Europe and Ansar al-Islam trainingcamps in northern Iraq. Moreover, one of the al Qaeda cell members arrested in Italy a Somali -- issuspected of funding the November 2002 al-Qaeda attack on Israeli tourists in Mombassa, Kenya, whileanother associate a Moroccan is an accused forger and admitted associate of members of the Hamburgcell connected with the September 11 attacks. In one intercepted phone conversation, a senior al Qaedaoperative is overheard assuring his subordinate about funding, saying, "Don't ever worry about money,because Saudi Arabia's money is your money."[3]Several charities definitively tied to international terrorism were either based or maintained branch offices inthe United States, including the Muslim World League (MWL), the International Islamic Relief Organization(IIRO), the Benevolence International Foundation (BIF), the Global Relief Foundation (GRF), the Holy LandFoundation for Relief and Development (HLF), and others.[4]TIER 2: FINANCING TERROR SUPPORTERSOther cases, like the activities of a host of purportedly political or social-activist groups operating in theUnited States, are far more subtle.For example, the Council on American-Islamic Relations (CAIR), which says it was "established to promote apositive image of Islam and Muslims in America,"[5] was co-founded by Omar Ahmed, the same person who

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Matthew A. Levitt on Iran on National Review Online Page 1 of 4

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M ay 29 , 2003. 8:45 a.m.Heart of the AxisAl Qaeda has long called Iran home.By Matthew A. Levitt

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T he National Security Council is scheduled to hold a"senior level meeting" Thursday to formulateadministration policy toward Iran. Electronic interceptsindicating senior al Qaeda operatives in Iran were behind theRiyadh bombings suddenly sparked official "concern"regarding the hospitality m aster terrorists enjoy with thecompliments of their Iranian Revolutionary Guard Corp(IRGC) and Ministry of Intelligence and Security (MOIS)hosts.They should be concerned. Experts nowbelieve Iran's nuclear program is muchfarther along than previously thought.Iranian dissidents recently identified twopreviously undisclosed uranium-enrichment facilities. This mix ofweapons of mass destruction, togetherwith frenetic state sponsorship ofterrorism and sheltering of al Qaedaleadership figures, places Iran firmly atthe pinnacle of the Axis of Evil.The problem is that officials should havebeen concerned long ago. The linksbetween Iran, described by the CIA asthe world's "foremost state sponsorojth enetwork of networks that is al Qaeda arenot new.. "News that al Qaeda's current militaryoperations chief, Saif al Adel, among the

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Date: Fri, 24 Oct 2003 14:04:08-0400From: MATT LEVITT 4f'

Subject: Fwd: POLICYWATCH #799: UNTANGLING THE WEB - CROSSOVERS AMONG INTERNATIONAL TERRORISTGROUPS

POLICYWATCHA n a l y s i s of N e a r E a s t P o l i c y f r o m the s c h o l a r s and associates of THEWASHINGTON INSTITUTEN u m b e r s e v e n H u n d r e d a n d N i n e t y - N i n eO c t o b e r 24, 2003UNTANGLING T H E WEB: CROSSOVERS AMONG INTERNATIONAL TERRORIST GROUPSB y M a t t h e w L e v i t tO n O c t o b e r 22, 2003, M a t t h e w L e v i t t , the institute's s e n i o r fellow int e r r 9 r i s m s t u d i e s , t e s t i f ie d bef9re t h e U.S. S e n a t e c o m m i t t e e o nB a n k i n g , H o u s i n g , a n d u r b a n Affairs. T h e f o l l o w i n g i s a n e d i t e d v e r s i o no f h i s r e m a r k s . T h e f u l l t e x t o f h i s s t a t e m e n t i s a v a i l a b l e a twww.washi n g t o n i n s t i t u t e . o r g / m e d i a / 1 e v i tt/1evi tt!02203.htmC o n s t r i c t i n g t h e O p e r a t i n g E n v i r o n m e n tN O c o u n t e r - t e r r o r i s m effort, h o w e v e r e x t e n s i v e , w i l l p u t a n e n d t ot e r r o r i s t attacks o r f u l l y u p r o o t t e r r o r i s m . T h e r e w i l l a l w a y s b e p e o p l ea n d g r o u p s w i t h e n t r e n c h e d causes, an o v e r w h e l m i n g sense of frustration,a s e j f - j u s t i f y i n g w o r l d v i e w , a n d a h e a l t h y d o s e o f e v i l , w h o w i l l r e s o r tto v i o l e n c e as a m e a n s of e x p r e s s i o n . The g o a l of c o u n t e r t e r r o r i s m ,t h e r e f o r e , s h o u l d b e t o c p n s t r i c t t h e o p e r a t i n g e n v i r o n m e n t i n o r d e r t om a k e i t i n c r e a s i n g l y d i f f i c u l t f o r t e r r o r i s t s t o c a r r y o u t t h e i r p l a n s .T h i s i n c l u d e s c r a c k i n g d o w n o n l o g i s t i c a l a n d f i n a n c i a l s u p p o r t n e tw o rk sa s w e l l a s o p e r a t i o n a l c e l l s .A c a d e m i c e x p e r t s f r e q u e n t l y a r g u e th a t t e r r o r i s m i s a n i n e x p e n s i v eb u s i n e s s a n d t ha t c o m b a t i n g t e r r o r i s t f i n a n c i n g w i l l n o t p r e v e n tt e r r o r i s t attacks, i n fact, it is extremely e x p e n s i v e to m a i n t a i n safeh o u s e s , b u y l o y a l t i e s , m a i n t a i n t h e p h y s i c a l i n f r a s t r u c t u r e o f t e r r o r i s to r g a n i z a t i o n s , p a y s a l a r i e s t o m e m b e r s , a n d m e e t t h e v a r i o u s o t h er costsa s so c ia t e d w i t h t e r r o r i s m . D e n y i n g t e r r o r i s t s t h e o p p o r t u n i t y t o c o n d u c ts u p p o r t a c t i v i t i e s u n d e r m i n e s t h e i r a b i l i t y t o p e r p e t r a t e attacks, e v e ni f t h e i r r a d i c al i d e o l o g y a n d v i o l e n t i n t e n t i o n s r e m a i n .one of the m o s t e f f e c t i v e ways to c o n s t r i c t the o p e r a t i n g e n v i r o n m e n ta n d c r a c k d o w n o n t e r r o r i s t f i n a n c i n g i s t o t a r g e t t h e n e t w o r k o fl o g i s t i c a l s u p p o r t g r o u p s . M a n y of t h e s e g r o u p s are not p a r t i c u l a r to as i n g l e t e r r o r i s t o r g a n i z a t i o n , i n fact, m i l i t a n t I s l a m i s t o r g a n i z a t i o n sf r o m a l - Q a e d a t o H a m a s i n t e r a c t a n d s u p p o r t o n e a n o t h e r i n a ni n t e r n a t i o n a l m a t r i x o f l o g i s t i c a l , f i n a n c i a l , a n d s o m e t i m e s o p e r a t i o n a lt e r r o r i s t a c t i v i t y , u n f o r t u n a t e l y , t w o years i n t o t h e w a r o n t e r r o r ,t h e s e a n d o t h e r g r o u p s , a l o n g w i t h a v a r i e t y o f M i d d l e E a s t e r n states p o n s o r s , s t i l l r e c e i v e i n c o n s i s t e n t a t t en t i o n d e s p i t e a s h a r p r i s e i nt h e i r a c t i v i t y , i n a t t e n t i o n t o a n y o n e p a r t o f t h e w e b o f m i l i t a n tI s l a m i s t t e r r o r i s m u n d e r m i n e s t h e e f f e c t i v e n e s s o f m e a s u r e s t a k e na g a i n s t o t h e r p a r t s of t h a t w e b.The M a t r i x of T e r r o r

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Matthew Levitt on Abu Musab al-Zarqawi on National Review Online Page 1 o f 4

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February 6. 2003, 9:00 a.m.The Zarqawi Node in the TerrorMatrixLinking the terrorists.By Matthew Levitt

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I n mapping out Iraq's links to international terrorism beforethe United Nations Security Council, Secretary of StateColin Powell highlighted the case of senior al Qaeda

commander Fedel Nazzel Khalayleh, better known as AbuMusab al-Zarqawi.The FrenchDisease ofAnti-AmericanismJean-Francois Revel,a leadingFrenchintellectual andfriend of the U.S.,shows how Europeand the rest of the .world caught theFrench disease ofAn ti'America n s nrt.

In fact, Zarqawi exemplifies not only theIraq role in the web of internationalterror but serves as a case in point of theterror matrix itself. Zarqawi's activitieson behalf of al Qaeda span the globe,from Afghanistan to Great Britain, withequally diverse links to other terroristgroups, from Ansar al-Islam in Iraq andHezbollah in Lebanon to al-Tawhid inGermany and Beyyiat el-Imam inTurkey. At least 116 terrorist operativesfrom Zarqawi's global network havealready been arrested, includingmembers in France, Italy, Spain, Britain,Germany, Turkey, Jordan, and SaudiArabia.WHO IS ZARQAWI?A Palestinian-Jordanian and veteran ofthe Afghan war against the Soviets,Zarqawi first appeared as a terror suspectwhen Jordan indicted him in absentia forhis role in the al Qaeda millennialbombing plot targeting the Radison SAShotel in Amman as well as other

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"Confronting Syrian Support fo r Terrorist Groups" (M ay 2003) Page 1 o f 7

^Middle EastIntell igenceBulletinJointly published by the United States Committee for a Free Lebanon and the Middle East Forum

Vol. 5 No. 5 Table of ContentsMEIB Main Page May 2003Confronting Syrian Support for Terrorist GroupsVIatthew A.Levitt "~ 'After the unveiling o f an American backed Israeli-Palestinian planknown as the road map earlier this month, U S Secretary of State ColinPowell embarked on a trip to the Middle East. Significantly, however,he did not stop in Israel or the West Bank o n this trip, but went straightto Damascus to w arn Syrian President Bashar Assad "in the strongestpossible terms" that the U nited States will not tolerate his g overnment'scontinued sponsorship of terrorist organizations that have carried outscores o f suicide bom bings in Israel during the past two and a halfyears.iu As one mem ber of Po w ell's entourage put it, "we didn't comehere bearing carrots. " 1 2 1This display of Am erican resolve - the true test of w hich w ill come inthe weeks and mo nths ahead - stems partly from the recognition thatthe peace process canno t be revitalized as long as Syrian sponsorshipof Hezbo llah, Hamas, Palestinian Islamic Jihad (PIJ). th e Popular Frontfor the Liberation of Palestine-General Command (PFLP-GC), and Bashar A & s a dother terrorist groups continues unabated. Un like in the past, ho wever,the Un ited States is not dem anding that Syria merely "rein in" terrorist groups opposed to the peaceprocess, but that it end its involvement in terrorism com pletely. In light of the A ssad regime'ssponsorship of terror attacks against US troops in Iraq and new intelligence regard ing al-Qaeda'snetwork in Syria, American officials are not likely to tolerate anything short of Syria getting out of theterror game altogether.Syrian Meddling in IraqThe w ar in Iraq highlighted Syria's status as a state sponsor of terror bent o n frustrating US efforts tobring peace, security an d demo cratization to the M iddle East. Syrian Fo reign Minister Faro uq al-Sharaasserted quite plainly, "Syria's interest is to see the invaders defeated in Iraq/'m He added, "Theresistance of the Iraqis is extremely important. It is a heroic resistance to the US-British occu pation o ftheir country. " H ITaking Shara's position one step further, Syria's senior mufti called fo r suicide attacks on Americansoldiers in Iraqjsi Indeed, thousands o f Arab irregular forces - some volunteers, some mem bers ofterrorist g roups like Palestinian Islamic Jihad, Hezbo llah and Fatah splinter g roups - crossed the Syrianborder into Iraq to battle coalition forces. Coalition com manders com mo nly referred to these irregularsas "Syrians" because mo st of them w ere Syrian, and m ost of those who weren't carried Syrian traveldocuments, in some cases specifically marked "reason for entry: Jihad. Length of stay: Indefinite. "M Inone case, US military forces captured a large group o f Syrians and co nfiscated seventy suicide jackets -each filled with twenty-two pounds of military grade C4 explosives, an d mercury detonators, m In

http://www.meib.org/articles/0305_sl.htm 10/7/03


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Matthew A. Levitt on Terrorism & Britain on National Review Online Page 1 o f4

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Septembers, 2003. 10:45 a.m.Still With Us?Testing Britain's counter-terror resolve.By Matthew A. Levitt

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Take 3 booksfor S1 eachast week, two disparate events tested Britain's resolve totake bold action in the war on terrorism. London passedthe first hurdle with flying colors, arresting a wantedfugitive, and will hopefully show similar determination by

shutting a terrorist front organization operating openly out ofLondon. Coming on the heels of intelligence revealing alQaeda plots to crash a hijacked aircraft into an importantBritish building, it is critical London signal its continuedresolve to fight terror.

Last Thursday, British authoritiesarrested a former Iranian diplomat(traveling on a student visa with nodiplomatic status or protection) for hisrole in a 1994 Hezbollah bombing attackin Argentina. London bristled at Iranianthreats to downgrade bilateral relationsand withdraw its ambassador over thearrest, seeking instead to forge acommon European front on relations toIran and exploring the possibility of anEU-wide downgrading of relations withTehran over the exposure of Iran'sfrenetic nuclear program.The following day, the U.S. TreasuryDepartment fingered the PalestinianRelief and Development Fund, orInterpal, as a U.K.-based Hamas frontorganization and branded it a "SpeciallyDesignated Global Terrorist entity."While it received a clean bill of health

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PolicyWatch 671 Page 1 of 3

Print this page.The Washington Institute for Near East PolicyPOLICYWATCH

Number 671 October 28, 2002UNTANGLING THE TERROR WEB: AL-QAEDAIS NOT THE ONLY ELEMENT

By Matthew LevittOn Thursday, October 24, the Federal Bureau of Investigation issued a new terrorist threatalert (this time warning of attacks on transportation systems), highlighting once more whyattention has been focused on al-Qaeda and its affiliated groups since September 11, 2001. Ayear on, however, other Middle Eastern terrorist groups and state sponsors of terrorism stillreceive inconsistent attention despite a sharp rise in their activity. In fact, militant Islamistgroups from al -Qaeda to Hamas interact and support one another in an international matrix oflogistical, financial, and sometimes operational terrorist activity. Inattention to any one part ofthe web of militant Islamist terror undermines the effectiveness of measures taken againstother parts of that web.Links between Terror GroupsSeptember 11 produced a political will, markedly absent after previous attacks, to takeconcrete action to counter and disrupt the terrorist threat to America and its allies. Yet,whileefforts targeting Osama bin Laden and his associates are concerted and continuous, similarefforts are lacking when it comes to other terrorist groups of global reach and state sponsors ofterrorism. In the months after September 2001, groups such as Hamas and Hizballah wereplaced on new U.S.government terrorism lists, and the primary Hamas front organization inAmerica was shut down. Since then, however, these groups have received only fleetingattention usually in the wake of increasingly heinous terrorist attacks. But the links betweenterrorist groups reveal a matrix of illicit activity on an international scale. Consider the followingexamples of the terror web: On February 15, 2002, Turkish police arrested two Palestinians and a Jordanian who enteredTurkey illegally from Iran on their way to conduct bombing attacks in Israel. The three weremembers of Beyyiat el-Imam (a group linked to al -Qaeda) who fought for the Taliban andreceived terrorist training in Afghanistan. They were dispatched by Abu Musab Zarqawi, then inIran and now believed to be in Syria after receiving medical treatment in Iraq. Zarqawi hasbeen linked to Hizballah, as well as to a terrorist cell apprehended in Germany that had beenoperating under the name Tawhid. German prosecutors announced that the group, tied to therecently arrested Abu Qatada in Britain but controlled by Zarqawi, was planning to attack U.S.or Israeli interests in Germany. Eight men were arrested, and raids yielded hundreds of forgedpassports from Iran, Iraq, Jordan, Denmark, and other countries. The International Islamic Relief Organization (IIRO) finances the activities of a diverse cross-section of international terrorist groups. From 1986 to 1994, bin Laden's brother-in-lawMuhammad Jamal Khalifa headed the IIRO's Philippines office, through which he channeledfunds to al -Qaeda affiliates, including Abu Sayyaf and the Moro Islamic Liberation Front. In1999, an IIRO employee in Canada was linked to the Egyptian Islamic Jihad. More recently,official Palestinian documents seized by Israeli forces in April 2002 establish that the IIROdonated at least $280,000 to Palestinian charities and organizations that U.S. authorities havelinked to Hamas.

http://www.washingtoninstitute.org/watch/Policywatch/policywatch2002/671.htm 10/23/03


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Matthew A. Levitt on Khaled Shaikh Muhammad on National Review Online Page 1 of 5

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March 5. 2003, 9:30 a.m.KSM in CustodyWartime status check.By Matthew A. Levitt

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Take 3 books for S1 eachT he capture of Khalid Shaikh Mohammed, al Qaeda'soperational commander and 9/11 mastermind,

demonstrates that the United States can, in fact, walk andchew gum at the same time. The fact that the greatest successto date in the war on terrorism occurred well into theplanning stages of the war to liberate Iraq should give pauseto critics who said these two wars could not be fought atonce. Indeed, the information investigators are alreadycollecting from his interrogation and the materials seizedwhen he was captured, including his laptop, cell phones,"pocket litter," and other documents, to the sudden surge ininternational phone and e-mail "chatter" officials aremonitoring strongly suggests there will be more suchsuccesses in the war on terror in the near future.

M A N A G I N G I N T E LOver the past fewmonths, severalrespected terror analysts have aired thelegitimate concern that fighting aconventional war in Iraq would drainprecious intelligence resources from theongoing, more dangerous, andimmediate war on terror. And it is truethat supporting military action hashistorically trumped other intelligencefunctions in times of war. By manyestimates, traditional war fightingdemands as much as 80 percent or moreof the intelligence community'sresources to support forces on theground. But this fails to account for twocritical factors: (1) the introduction of

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T1 B26 Matt Levitt Fdr- Articles and Testimony- 1st Pgs for Reference 629

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