Tuesday, January 20, 2009

Shifting Paradigms in Counterterror

by Phil Leggiere

Leading analyst sees Obama’s challenge as redefining “war on terror” as counterinsurgency.

“Paradigm shifts,” according to the famous formulation of historian Thomas Kuhn, occur when the reigning models which have guided a discipline no longer adequately account for new developments and data.

In an important essay titled Terrorism's Twelve Step Program, published in the scholarly journal The National Interest on the eve of the Obama inauguration, noted counterterror analyst Bruce Hoffman, a professor at Georgetown University’s School of Foreign Service and author of Inside Terrorism argues that many of the paradigms which have guided counterterror policy thinking since 9-11, and which the new administration will inherit, have become increasingly obsolete.

“The current threat environment posed by terrorism and insurgency makes a new strategy, approach and new organizational and institutional behaviors necessary,” Hoffman writes. “The nontraditional challenges to US national security and foreign-policy imperatives posed by elusive and deadly irregular adversaries emphasize the need to anchor changes that will more effectively close the gap between detecting irregular adversarial activity and rapidly defeating it.”

The first major conceptual change urged by Hoffman is to redine the global conflict against terrorism in terms of a global counterinsurgency (GCOIN) rather than a war.

“Although relevant to the challenge that the United States faced in the immediate aftermath of the September 11 attacks, the term global war on terrorism (GWOT),” he says, “ has increasingly alienated our friends and discouraged our allies. This is particularly so in the Muslim world where the GWOT has unfortunately, and however erroneously, nonetheless become synonymous with a war on Islam.

A new model of counterinsurgency against terror, in Hoffman’s blueprint, would knit together as equally critical components political, economic, diplomatic, information and developmental sides inherent to the successful prosecution of counterinsurgency alongside the existing dominant military side of the equation.

Reframed as a counterinsurgency, efforts most also be radically refocused geographically, according to Hoffman.

“If 9/11 has taught us anything,” says Hoffman, “ it is that Al Qaeda is most dangerous when it has a sanctuary or safe haven from which to operate—as it now indisputably does.” “Indeed,” he goes on, “ virtually every major terrorist attack or plot of the past four years has emanated from Al Qaeda’s reconstituted sanctuary in Pakistan’s Federally Administered Tribal Areas (FATA) or Northwest Frontier Province (NWFP).

Stressing the urgent and immediate need for a coherent “Obama doctrine” in Central Asia, Hoffman says, “the United States has no effective political or military strategy for either Afghanistan or Pakistan and appears to treat them separately and not synergistically. Given that the security challenges in both countries are now ineluctably symbiotic, any serious effort to stabilize and secure Afghanistan must begin with a clear and consistent policy designed to achieve the same in Pakistan.”

Accordingly, he adds, “ the highest priority for the Obama administration must be to refocus our—and our allies’—attention on Afghanistan and Pakistan, where Al Qaeda began to collapse after 2001, but has now regrouped. This will entail understanding that Al Qaeda and its local militant jihadist allies cannot be defeated by military means alone.”

Adequately addressing new counterinsurgency challenges the Obama administration will face, Hoffman argues, entails yet another paradigmatic change in strategy.

“Success,” he writes, “ will require a dual strategy of systematically destroying and weakening enemy capabilities—that is, continuing to kill and capture Al Qaeda commanders and operatives—along with breaking the cycle of terrorist recruitment among radicalized "bunches of guys" as well as more effectively countering Al Qaeda’s effective information operations.”

The United States,” he adds, “ thus requires a strategy that harnesses the overwhelming kinetic force of the American military as part of a comprehensive vision to transform other, non-kinetic instruments of national power in order to deal more effectively with irregular and unconventional threats.”

To hope to accomplish this goal, Hoffman insists, “organizations will therefore have to do—or be compelled to do—what they have been reluctant to do in the past: reaching across bureaucratic territorial divides and sharing resources in order to defeat terrorists, insurgencies and other emerging threats.”

Clarifying these expectations and processes, according to Hoffman, is a critical step in efficiently addressing contemporary threats to US security as is creating incentives to more effectively blend diplomacy, justice, development, finance, intelligence, law enforcement, and military capabilities and coherently generating and applying resources to defeat terrorist and insurgent threats.

This will require, according to Hoffman, effective targeting of essential support and logistics networks, focusing on the middlemen that help terrorist organizations access funds and purchase supplies on the black market: financiers and smugglers.

“ Attention has mostly been focused on front organizations and individuals that provide money to terrorist organizations,” he says, “experience has shown that it would be more advantageous to expand this approach and target specifically the middlemen that, for instance, purchase diamonds from terrorists on the black market, or individuals that sell weapons to terrorist organizations.”

What remains missing seven-and-a-half years into this struggle,” he adds, “ is a thorough, systematic and empirical understanding of our enemy: encompassing motivation as well as mindset; decision-making processes as well as command and control relationships; and ideological appeal as well as organizational dynamics.”

Such an understanding, he concludes, is essential to transcending the “one size fits all” mindset has predominated in our approach to countering what is in fact a diverse, and often idiosyncratic, array of enemies.

Without fully knowing our enemy,” he says, “ we cannot successfully penetrate their cells; we cannot knowledgeably sow discord and dissension in their ranks and thus weaken them from within; nor can we think like them in anticipation of how they may act in a variety of situations, aided by different resources. Further, we cannot fulfill the most basic requirements of either an effective counterterrorist strategy—preempting and preventing terrorist operations and deterring their attacks—or of an effective counterinsurgency strategy, gaining the support of the population and through the dismantling of the insurgent infrastructure.

Republic-vs-Democracy

Interesting .... Just after the completion and signing of the Constitution, in reply to a woman's inquiry as to the type of government the Founders had created, Benjamin Franklin said, "A Republic, if you can keep it." Not only have we failed to keep it, most don't even know what it is.

This well worth your time. A quick review of the differences between a Monarchy (or Dictatorship), an Oligarchy, a Democracy, a Republic, and Anarchy. And, did you know that the term "democracy" does not appear in either our Declaration of Independence nor our Constitution. Watch and learn...




Fastest shot in the world

This YouTube video will blow you away. Bob Munden claims to be the fastest gun to ever live. He specializes in quick drawing with a revolver. And he claims to hold 18 world records.

Can he back up all that big talk? You better believe it. I’ve never seen anyone do anything this fast. He uses a specially made gun and holster. But no gear alone can produce these results. This made my jaw drop.

Holder for Wiretaps

(Compiler's note: Is it really better late than never?)

First it was the special surveillance court that we learned last week has affirmed the President's constitutional power to undertake warrantless wiretaps. Now comes Attorney General nominee Eric Holder, who endorsed this executive authority during his confirmation hearing late last week.

During Thursday's Senate Judiciary Committee hearing, Utah's Orrin Hatch read Mr. Holder a passage from a speech the nominee gave to the American Constitution Society in June of last year. Mr. Holder had said, "I never thought I would see that a President would act in direct defiance of federal law by authorizing warrantless NSA surveillance of American citizens," referring to the National Security Agency program. "This disrespect for the law is not only wrong. It is destructive in our struggle against terrorism."

The Republican Senator was sniffing out Mr. Holder's views on executive power under the Constitution and whether Congress can pass laws, such as the 1978 Foreign Intelligence Surveillance Act, that limit it. "Do you believe," asked Mr. Hatch, "that the President has -- that whoever is President has -- inherent authority under Article II of the Constitution to engage in warrantless foreign intelligence surveillance? Or, in your opinion, does FISA trump Article II?"

Mr. Holder answered with some political tap dancing. "There's an exclusivity provision in the FISA act that essentially says, as Congress has expressed, this is the exclusive way in which that surveillance should occur," he said. "My speech was taking the Administration to task for not following the dictates of FISA. As I indicated -- I think in response to a previous question -- I think that had the Administration worked with Congress, as we are pledging to do, that tool, a very valuable tool, a very valuable tool, could have been in the arsenal of the Administration without any question about its legality."

Senator Hatch pressed him on this point, resulting in the following exchange:

Mr. Hatch: "Back to my prior point, the President's inherent authority under the Constitution. Can that be limited by a statute? You're relying on a statute as though that's binding on Article II of the Constitution."

Mr. Holder: "Well, the President obviously has powers under the Constitution that cannot be infringed by the legislative branch. That's what I was saying earlier. There are powers that the President has delegated to him -- that he has -- and Congress does not have the ability to say, with regard to those powers, you cannot exercise them. There's always a tension in trying to decide where that balance is struck. And I think we see the best result when we see Congress interacting with the President, the executive branch interacting with the legislative branch and coming up with solutions . . ."

Mr. Hatch: "That still doesn't negate the fact that the President may have inherent powers under Article II that even a statute cannot vary."

Mr. Holder: "Sure."

Mr. Hatch: "Do you agree with that statement?"

Holder: "Yeah. There are certain things that a President has the constitutional right, authority to do, that the legislative branch cannot impinge upon."

Hatch: "Okay."

So let's see. Mr. Holder now concedes that Presidents have inherent powers that even a statute can't abridge, notwithstanding his campaign speeches. That makes us feel better about a General Holder on national security. But his concession is further evidence that the liberal accusations about "breaking the law" and "illegal wiretaps" of the last several years were mostly about naked partisanship. Mr. Holder's objection turns out to be merely the tactical political one that the Bush Administration would have been better off negotiating with Congress for wiretap approval, not that it was breaking the law. Now he tells us.

Prayer Service.

(Compiler's note: This is a must read item from ACT for America. Research is by the Center for Security Policy It is sufficiently problematic that ISNA, the organization of which Ingrid Mattson is president, was designated an unindicted co-conspirator in the Holy Land Foundation terrorism financing trial (which produced guilty verdicts on 108 counts). Mattson’s words and views beg the question: When there are Muslims in America who have publicly spoken out against Jihad, against shariah law, and against ISNA, why was Ingrid Mattson chosen for this interfaith prayer service?)

ISNA's Ingrid Mattson in Her Own Words

Center for Security Policy (Research Brief)
August 23, 2008

http://www.centerforsecuritypolicy.org/home.aspx?sid=140&categoryid=140&subcategoryid=141
http://www.campus-watch.org/article/id/5544



1) Mattson places loyalty to Islam before loyalty to the United States of America:

If Muslim Americans are to participate in such a critique of American policy, however, they will only be effective if they do it, according to the Prophet's words, in a "brotherly" fashion. This implies a high degree of loyalty and affection. This does not mean, however, that citizenship and religious community are identical commitments, nor that they demand the same kind of loyalty. People of faith have a certain kind of solidarity with others of their faith community that transcends the basic rights and duties of citizenship.

2) Mattson on the possibility that Americans may "rise to the challenge of defining themselves as an ethical nation":

The first duty of Muslims in America, therefore, is to help shape American policies so they are in harmony with the essential values of this country. In the realm of foreign policy, this "idealistic" view has been out of fashion for some time. Indeed, the American Constitution, like foundational religious texts, can be read in many different ways. The true values of America are those which we decide to embrace as our own. There is no guarantee, therefore, that Americans will rise to the challenge of defining themselves as an ethical nation; nevertheless, given the success of domestic struggles for human dignity and rights in the twentieth century, we can be hopeful.

3) Mattson denies the existence of terrorist cells in the United States:

There's a prejudgment, a collective judgment of Muslims, and a suspicion that well "you may appear nice, but we know there are sleeper cells of Americans," which of course is not true. There aren't any sleeper cells.

4) Mattson defends Wahhabism:

CHAT PARTICIPANT: What can you tell us about the Wahhabi sect of Islam? Is it true that this is an extremely right wing sect founded and funded by the Saudi royal family, and led by Osama bin Ladin? What is the purpose of the Wahhabi?

MATTSON: No it's not true to characterize 'Wahhabism' that way. This is not a sect. It is the name of a reform movement that began 200 years ago to rid Islamic societies of cultural practices and rigid interpretation that had acquired over the centuries. It really was analogous to the European protestant reformation. Because the Wahhabi scholars became integrated into the Saudi state, there has been some difficulty keeping that particular interpretation of religion from being enforced too broadly on the population as a whole. However, the Saudi scholars who are Wahhabi have denounced terrorism and denounced in particular the acts of September 11. Those statements are available publicly.

This question has arisen because last week there were a number of newspaper reports that were dealing with this. They raised the issue of the role of Saudi Arabia and the ideology there. Frankly, I think in a way it was a reaction to the attempts of many people to look for the roots of terrorism in misguided foreign policy. It's not helpful, I believe, to create another broad category that that becomes the scapegoat for terrorism.

5) Mattson on the negative effects of the end of the Islamic Caliphate:

CHAT PARTICIPANT: Osama bin Laden made a reference that Muslims have been living in humiliation for 80 years. Did he refer to the Treaty of Sevres in 1920 that dismantled caliphates and sultanates?

MATTSON: Yes, he is referring to that, to the overthrowing of the caliphate, which was a plan of European powers for many years. This deprived the Muslim world of a stable and centralized authority, and much of the chaos that we're living in today is the result of that.

6) Mattson teaches the jihadists Sayyid Qutb and Syed Abu'l-`Ala Mawdudi in her course at Hartford Seminary – see the syllabus here.

7) Mattson praises the jihadist Mawdudi (aka Maududi):

In response to another question, "Please suggest any comprehensive work of Tafseer (Qur'anic commentary) for us Muslim youth," she said, "There are different kinds of Tafseers. For e.g. there are ones that contain detailed interpretations of grammatical aspects of Qur'anic language. And there are others that serve to explain the general message of Qur'an, coupled with the experiences and insights of the author of the Tafseer. However, there aren't really any Tafseers that combine the both aspects. So far, probably the best work of Tafseer in English is by Maulana Abul A'la Maududi.'"

Maududi on jihad (Jihad in Islam, page 9): "Islam wishes to destroy all States and Governments anywhere on the face of the earth which are opposed to the ideology and programme of Islam regardless of the country or the Nation which rules it. The purpose of Islam is to set up a State on the basis of its own ideology and programme, regardless of which Nation assumes the role of the standard bearer of Islam or the rule of which nation is undermined in the process of the establishment of an ideological Islamic State. It must be evident to you from this discussion that the objective of Islamic 'Jihad' is to eliminate the rule of an un-Islamic system and establish in its stead an Islamic system of State rule. Islam does not intend to confine this revolution to a single State or a few countries; the aim of Islam is to bring about a universal revolution."

Maududi on denial of rights to non-Muslims (Jihad in Islam, page 28): "Islamic 'Jihad' does not recognize their right to administer State affairs according to a system which, in the view of Islam, is evil. Furthermore, Islamic 'Jihad' also refuses to admit their right to continue with such practices under an Islamic government which fatally affect the public interest from the viewpoint of Islam."

Maududi on Shariah Law's precedence over any other legal system (Islamic Law and Its Introduction, p. 13): That if an Islamic society consciously resolves not to accept the Sharia, and decides to enact its own constitution and laws or borrow them from any other source in disregard of the Sharia, such a society breaks its contract with God and forfeits its right to be called 'Islamic.'"

8) Although she recommends and teaches Abdul ala Maududi, who advocates violent jihad against non-Muslims (see above), Mattson is highly critical of Christians who make the factual statement that texts by Muslims support violent jihad against non-Muslims -- and she equates Christian critics of violent jihad with Osama bin Laden, who wages violent jihad. Mattson on critical statements by Christians about Muslims:

"These kinds of statements are really irresponsible, because they can lead to violence against ordinary people......I don't see any difference between that and al Qaeda and Osama bin Laden [using] Islamic theology to justify violence against Americans. What's interesting is if you compare [their] statements about what Islam is and what Muslims believe, you'll find they are almost identical, and I reject both interpretations -- both the non-Muslims who are saying that Islam justifies violence against Christians and Jews, and the Muslims who are saying it. Certainly these statements have a very unnerving effect, especially when they continue, when more than one person says it."

9) Mattson is a traditionalist on Shariah law and the legitimacy of Shariah authorities:

"As a practicing Muslim, I believe that there is a core of fundamental beliefs and practices that distinguish authentic Islam from deviations. I also believe that apart from this essential core, the task of interpreting the application of Islamic norms to human society is an enormously complicated task, which inevitably leads to a broad range of opinion and practice. I agree with " Sunni" Muslims, the majority of the Muslim community worldwide, that after the death of the Prophet Muhammad, no one has the right to claim infallibility in the interpretation of sacred law. At the same time, this does not mean that all opinions are equal, nor that everyone has the ability to interpret law. Without the intense study of Islamic texts and traditions under qualified scholars and without the presence of a stable Muslim community through which one can witness the wisdom of the living tradition, the chances of an ordinary believer arriving at a correct judgment about most legal issues are slim."

Click here to continue reading this article.

Former CIA Director Goss Talks about CIA in Rare Florida Public Appearance

by Naples Daily News

Former CIA director Porter Goss turned the tables on his audience Monday, asking a North Naples crowd of mostly retirees to ponder some of the questions he’s been asked over the years before asking him any. During a more than hour-long speech peppered with questions at St. John the Evangelist Church in North Naples, the 70-year-old former congressman, who represented Collier and Lee counties for nearly 16 years, asked the packed auditorium to focus on whether there still is a need for the Central Intelligence Agency. If so, he asked, what would it look like and what would it do? ....

Pandemic Prep Gaps Remain, Says House HS Committee, HHS

By Anthony L. Kimery

As the virulent H5N1 and other strains of avian influenza—some showing disturbing signs of mutations toward making them human-to-human transmissible—spreads throughout Southeast Asia, the African sub-continent, the Middle East and other areas of the world, virologists and pandemic preparedness authorities are becoming increasingly uneasy over the possibility that a human pandemic could emerge before the world is better prepared. ....


Strategic Insights

The Center for Contemporary Conflict has eleven new Feature Articles presented on three topics: ³Proliferation Pathways & Nuclear Ambitions;² ³Hard, Soft & Smart Power in Perspective;² and ³Geopolitics & International Economic Relations.² We also present two new Viewpoint articles, a new Student Thesis, and a report from this past summer¹s conference on Tomorrow¹s Proliferation Pathways.

They have eleven new Feature Articles to present this quarter.

In section one, on ³Proliferation Pathways & Nuclear Ambitions,² we present ³The Middle East¹s Next Nuclear State ,² by Bruno Tertrais; ³Russia¹s Proliferation Pathways ,² by Stephen Blank; ³Legal Instruments to Prevent Nuclear WMD Use by Non-State Actors ,² by Friedrich Steinhäusler; and ³Preparing for the 2009 Nuclear Posture Review:
Post-Cold War Nuclear Deterrence and the 2001 NPR Debate ,² by Maj. Scott Weston, USAF.

In section two, on ³Hard, Soft & Smart Power in Perspective,² we present ³Soft Power and Smart Power in Africa ,² by Maj.
James R. ³Hack² Hackbarth, USAF; ³Two Sides of the Same COIN: Torture and Terror in the Algerian War, 1954-62 ,² by Daniel Moran; ³The Information Domain as an Element of National Power ,² by Robert Kozloski; and ³Ajara ­ A New Russian Option in Georgia?
,² by William C.
Green.

In section three, on ³Geopolitics & International Economic Relations,² we present ³Liberal, Imperial, and Economic Motivation of U.S. Foreign Policy in the Philippines, 1898-1946 ,² by Maj. Scott Weston, USAF; ³The Global Financial Crisis and the Hidden Crisis of the Oil-Rentier Economies: Back to Basics ,² by Sabri Zire Al-Saadi; and ³Toward a Post-Arctic World ² by Barry S.
Zellen.

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VIEWPOINTS

We have two new Viewpoint articles to present this quarter. They are:
Farideh Farhi¹s ³Israel, Gaza, the Return of an ŒEmboldened Iran¹ ­ and Obama ,² and Zachary Davis¹ ³Pakistan¹s Last Chance

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STUDENT THESIS

We are proud to present a new student thesis from Jessica E. Cleary, ³The Effects of National Policy on Refugee Welfare and Related Security Issues: A Comparative Case Study of Lebanon, Egypt and Syria

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CONFERENCE REPORT

And lastly, we present a conference report from ³Tomorrow¹s Proliferation
Pathways: Weak States, Rogues, and Non-State Actors ² held on July 17-18, 2008, authored by James A. Russell and Aaron May.

Singapore’s Zero-Tolerance Approach to Counter the Financing of Terrorism

By Dr. Rohan Gunaratna

Traditionally, investigations of acts of crime and terrorism take place after they have been committed. With the increase in the lethality of terrorism, governments should prevent acts of violence though proactive investigations. Realizing the adverse impact an attack in Singapore will have on its global reputation as a safe destination for trade, commerce and investment, government invested significant resources strengthening its preventive capabilities. ....

Al-Qaeda leaders in Iran sanctioned by OFAC

by Kenneth Rijock

Four Al-Qaeda members who reportedly have resided in Iran, including one of the sons of Osama Bin Ladin, have been sanctioned by the US Treasury as Specially Designated Global Terrorists (SDGT).

Their identifiers and aliases can be seen at:

http://www.treas.gov/offices/enforcement/ofac/actions/20090116.shtml
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For further reading:
Treasury Targets Al Qaeda Operatives in Iran
http://www.treas.gov/press/releases/hp1360.htm

Watch developments in Korea

by Kenneth Rijock

Particularly bellicose announcements, made by the government-controlled press. from the Democratic Peoples' Republic of Korea (DPRK), more commonly known as North Korea, could be a sign that the deteriorating relations between it and South Korea's government will cause North Korea to undertake some form of military action that will increase country risk. Compliance officers at financial institutions whose clients have ongoing business matters with Korean companies, or businesses in Korea, should regularly monitor the unfolding situation.

Some Korea watchers are especially worried that a recent television announcement, detailing the presence of "weaponised" plutonium in the DPRK, was made by a military officer. Reportedly, these media announcements are generally made by civilian reporters. There have also been anti-American statements reported as having been made by North Korean media.

UNDERSTANDING MONEY LAUNDERING

(Compiler's note: A must read article.)

from World-Check

Defining money laundering and identifying the full scope of money laundering practices is the critical first step in creating an effective anti money laundering framework within a financial organisation.

As the leading global provider of risk intelligence solutions for Anti Money Laundering (AML) compliance purposes, World-Check supplies 47 of the 50 largest banks in the world with a highly structured database of heightened-risk entities and individuals. Collated from hundreds of thousands of credible data sources in the public domain, the database coverage includes a range of risk categories from money laundering and fraud to terrorism and corruption.

Read on for an overview of money laundering and the processes involved in the laundering of illicit funds, or find out more about how the World-Check AML intelligence solution can help your organisation meet its regulatory obligations.

What Is Money Laundering?


Essentially, money laundering refers to all actions and procedures intended to change the identity of money made from criminal activities in order to create the impression that the money has a legitimate source.

Money laundering, loosely defined, is the transactional processing or moving of illicitly gained funds (such as currency, cheques, electronic transfers or similar equivalents) towards disguising its source, nature, ownership or intended destination and/or beneficiaries. The desired outcome of this process is “clean” money that can be legally accessed or distributed via legitimate financial channels and credible institutions.

Money laundering scams abound, yet they all have a single goal in common: to create the illusion that illicitly generated funds have a legal source. As such, the challenge for Anti Money Laundering (AML) legislation is to cover loopholes as quickly and effectively as possible.

What drives money laundering?


Money laundering, as a rule of thumb, is driven by a criminal imperative aimed at generating profits in an illegal fashion. Such proceeds of organised crime, fraud or embezzlement exists “outside” a country’s legitimate financial system.

The money laundering process aims to camouflage such funds or financial assets by passing it through multiple accounts and shell companies (an illicit process referred to as “money laundering”) towards either totally obscuring the original source, or towards associating the funds or assets with a source that looks legal. If the laundering process is successful, the launderer gains access easily accessible funds that looks legitimate, and can be moved around with ease.

Why exactly is money laundering a problem?


The socio-economic effects of money laundering are crippling: Illicit funds generated from criminal activities such as gun running, drug and human trafficking and other forms of organised crime is laundered into clean currency, and in turn used to fund new criminal operations or expand existing ones. This translates into more drug trafficking and dealing, more illegal firearms, more violent crimes, and – most disconcertingly – more international terrorism.

Left unchecked, money laundering can undermine the integrity of entire financial systems, and embroil individual financial institutions in share-crippling financial scandals.

Moreover, the amounts of money generated from criminal activities and laundered throughout the world amount several billions of dollars – up to as much as 5% of the global GDP. This gives the beneficiaries of money laundering a lot of muscle, and certainly enough means to threaten political stability worldwide.

In essence, regulatory compliance seeks to curb this criminal proliferation by holding financial systems providers and banking institutions accountable for the financial activities of the clients they deal with. Money laundering poses a very real threat to the reputation and financial well-being of banks, law firms, accountants and asset management houses around the world, as these institutions are often unwitting accomplices in the laundering of dirty money.

Anti Money Laundering (AML) compliance post-9/11


Since the 9/11 attacks in the United States, AML and Anti Financing of Terrorism (ATF) compliance requirements for banks, law firms, accounting firms, asset management houses and similar financial service providers have been expanded significantly. The USA Patriot Act, BASEL II Act and Wolfberg principles, for example, serve as a framework for standardising Anti Money Laundering (AML) compliance and Know Your Customer (KYC) due diligence mandates.

Find out more about Anti Money Laundering (AML) laws and their implications for regulated service providers.

Entities such as the Financial Action Task Force (FATF), Wolfsberg Group and Basel Committee are key drivers of the regulatory policy-making process, and are closely involved in the standardisation and enforcement of related compliance mandates.

How does money laundering work?


There exists a plethora of ways in which illicit funds can be laundered, yet the following example provides a good basic illustration of the thinking underlying the process:


A drug dealer may own a restaurant or bar, or be in cahoots with a partner that does. Proceeds from their drug dealing then gets paid into this reputable business, along with other regular trading income.

The launderers then open up additional service businesses or supply companies to serve the business or enterprise where money is initially placed. These service entities then issue invoices, which the restaurant settles by means of cheque payments. By increasing the amount of businesses interacting by means of such transactions, and by moving the money around internationally, the criminal origins of the money is effectively obscured, if not fully concealed. The successful laundering enriches the directors and/or the shadowy interests they represent.

Forensic auditors would need to spend months – if not years – retracing each step, hence such investigations are generally not undertaken unless the amount of money being laundered is substantial, or the nature of the crimes being funded is heinous.

The beneficiaries of such money laundering scams and syndicates are often high net-worth individuals and entities, and in turn they become highly sought after as private banking clients. They then tend to gain access to legitimate investment opportunities and privileged high-end investment funds, making apprehending them even harder.

To this end, Anti Money Laundering (AML) legislation and the regulatory bodies enforcing compliance endeavour to close money laundering loopholes on an ongoing basis. This is achieved by expanding the existing money laundering definition and AML compliance requirements, and by holding banks, law firms, asset managers and accounting houses accountable for their compliance performance.

For banks, AML compliance is by no means a new challenge, yet recent world events have prompted the critical reassessment and expansion of existing compliance regulations. The number of industries being regulated in terms of AML compliance, KYC regulation and AFT compliance has also increased substantially.

The 3 stages of money laundering


Essentially, there are three primary (though often overlapping) stages in the money laundering “spin cycle”:
  • The placement stage
  • The layering stage
  • The integration stage

Money Laundering: The Placement Stage


During the placement stage, the hard currency generated by the sale of drugs illegal firearms, prostitution or human trafficking, etc. needs to be disposed of, and is deposited in an institution or business. Expensive property or assets may also be bought.

Money Laundering: The Layering Stage


During the layering stage, money launderers endeavour to separate illegally obtained assets or funds from their original source. This is achieve by creating layer upon layer of transactions, by moving the illicit funds between accounts, between businesses, and by buying and selling assets on a local and international basis until the original source of the money is virtually untraceable.

The more transactional layers are created, the more difficult it becomes for an auditor to trace the original source of illicit funds, and thus anonymity is achieved.

Money Laundering: The Integration Stage


Upon successful completion of the financial layering process, illicit funds are reintroduced into the financial system, as payment for services rendered, for example. By this stage, illegally obtained funds closely resemble legally generated wealth.

Depending on the money laundering mechanisms available to the launder, these three steps may overlap. Whether the money laundering process starts with a deposit or a purchase, the methods will invariable entail layers of shape-shifting transaction aimed at distancing the funds or assets from their source origins. The further this transactional distance becomes, the “cleaner” the laundered money appears.

Click here for additional information

Final Rule on transactions exempt from CTRs

by Kenneth Rijock

The Final Rule regarding exemptions from the requirements of Currency Transaction Reporting (CTR) have been iassued by FinCEN. Readers may want to keep it handy for ready reference. (32 CFR Part 103) the Rule appeared on the OCC website, and we provide the URL here for your conveneince.

Federal Register Vol. 73, No. 235, 5 December, 2008.
http://www.occ.treas.gov/fr/fedregister/73fr74010.pdf

Gaza Redevelopment funds may pose a Threat to Financial Institutions

by Kenneth Rijock

The tug of war over exactly how Gaza rebuilding funds will be administered is distracting us from a far more serious issue: will the transmission of such reconstruction funds result in regulatory fines and penaltiesfor financial institutions involved? How does a bank fund reconstruction, where the government is a designated global terrorist organisation? These questions will require an answer from banks in the region who will be asked to participate in the reconstruction process.

The major issue presented is whether US regulators, who have sanctioned Hamas as a SDGT, will choose to sanction Middle Eastern financial institutions that directly(and not indirectly) fund Hamas in the redevelopment operation. Remember that the US sanctioned not only Hizballah's construction company after the 2006 conflict between Hizballah and Israel, but its successor company.* How the US will treat Hamas in the post-war period may give us an idea regarding how it intends to treat banks who fund rehabilitation money to Hamas, directly or in a covert manner.

The secondary issue is whether the intermediary presence of Non-Governmental Organisations (NGO), acting on humanitarian grounds, and routing funds, will deter US regulators from punitive action against regional banks involved in the funding.

Any financial institution in the Middle East that has already been approached by potential donors had best consult with bank counsel immediately, lest it find itself in trouble with US law enforcement or regulators as a facilitator of terrorism.

Defeating Terrorist Support Structures after Mumbai II

by John Soloman

The November 2008 terrorist attack on Mumbai underscored a central challenge in the global counterterrorism struggle: defeating broad terrorist support structures. This is the second of a three part series to address this fundamental and often controversial aspect of countering the financing of terrorism (CFT).

The issue is fundamental because without solid recruitment and funding structures, the active terrorist cells are debilitated to a significant degree. The issue is controversial because broad organizational infrastructures often encompass non-profit fronts that carry out vital humanitarian activities irrespective of their involvement in militancy or terrorism.

Non-profit organizations continue to be an effective way for terrorist organizations to raise money and build their infrastructures. The February 2008 FATF report indicated that non-profit organizations are “coming to be recognized as a crucial weak point in the global
struggle to combat terrorist finance.” This trend is not a new one. Charitable fronts have long been associated with controversial causes.

In the context of November’s attack, this second report will examine the Pakistan-based non-profit organization Jamaatud- Dawa (JuD), allegedly the public face of Lashkar-e-Tayyiba
(LeT), which is thought to be responsible for the horrific siege of Mumbai. JuD denies any link to LeT. The third report will consider whether the UN Security Council’s decision to ban JuD following the attack will eliminate the organization or its activities, and will also provide recommendations for the private and public sectors to fortify the system to reduce the risk of breach by terrorists and their financiers.....

Fannie, Freddie Strive to Serve Housing Market, Taxpayers

Four months after the U.S. government takeover of home-mortgage giants Fannie Mae and Freddie Mac, their chief executives and regulators again find themselves with conflicting goals.

Before the takeover, the tension was between shareholders' desire for bigger dividends and political pressure on the government-sponsored mortgage companies to support the housing market and help more low-income people afford homes. Now the conflict is between the government's efforts to spur housing with lower mortgage costs and the desire to avoid heavy loan-default losses that would be borne by taxpayers.

Fannie and Freddie over the past 18 months have gradually imposed larger surcharges ...

Monday, January 19, 2009

Bush commutes sentences of former US border agents

Panetta, Preservationists and Problems with U.S. Intelligence

(Compiler's note: Yes, this is another must read article.)

by Steve Schippert

If you want to know what's wrong with the U.S. intelligence community (IC), just read Jeff Stein's latest at Congressional Quarterly's Spy Talk. Before recounting a very telling (and not uncommon) private conversation with a veteran U.S. intelligence professional, he nails it early on.

Word hasn't leaked yet, but I wouldn't be surprised if President-elect Barack Obama has already figured out that when he wants quick answers to what's going on in the world, the last person to ask is the head of U.S. intelligence.

The steady deterioration of personnel and standards of intelligence analysis, especially at the CIA, has been going on for decades, a number of former top intelligence officials I know say.

The tip of the rot surfaces from time to time, such as with the 9/11 surprise and the gimcrackery reports on Iraq's weapons of mass destruction.

The dogs howl and the caravan moves on. Nothing changes, many well placed former intelligence officials have been telling me. But the current, possibly fatal dangers we face demand the problems be fixed.

We've been spending too much time chattering about the operations side of intelligence lately, they say, in particular whether Leon Panetta, the former OMB head and chief of staff to President Clinton, is up to handling the spies and back-alley guys and gals.

But officials have been reminding me that it was the dismally poor analysis of intelligence that enabled President Bush to lead the nation into the disastrous invasion of Iraq — not faulty espionage (such as it was).

And it's the analysis served up by the CIA and other spy agencies, they point out, that will guide President Obama's decisions on Iraq, Iran, Afghanistan, Pakistan and North Korea, among other front-burner emergencies.

Nailed. It's weak analysis based on incomplete information (it's intelligence after all, not history) too often communicated in career-safe language rather than with actual analytical conclusions. It's an abject fear of being wrong. Well, if you're afraid to be wrong, you lack the courage to be right. And if that's the milquetoast case, the product you are giving me is nearly worthless.

My colleague Michael Tanji is a former supervisory officer at the Defense Intelligence Agency, and he understands, painfully, the inner workings of the intelligence bureaucratic Behemoth. His insight is important to consider.

Jeff Stein drives home the point that this is what you get when:

You don't have the stones to do analysis

You don't have the brains to do analysis

You treat analysts like LEGO blocks

Contrary to the common expectation — for those that actually bother to read declassified NIEs and the like — intelligence analysis isn't telling people what they already know. 'Climate change can lead to instability . . .' No kidding? As a matter of fact, analysis in popular culture is more representative of what it should be behind closed doors because, once you suspend disbelief on how they get the information, it inevitably turns out to be exactly the right piece of information a decision-maker needs exactly when he needs it. Unfortunately in real life good information is rare and usually late, so decisions are made with what is lying around and delivered by people who communicate in such a way so as to never be wrong.

And, equally important, the communication is also couched in careful language for the writer (or presenter) to be able to likewise claim some degree of being right. It is too often about the preservation of a career rather than the actual service of intelligence. Intelligence is already an inexact science. It used to be, in fact, an art. Now? Not so much.

I've studied conflicts, regions and groups and written a fair amount of analysis over the years. Some of it has been well recieved, some of it not. Some of it proved on the mark, and again, some of it not so much. But that's OK — that's analysis. For me, one thing has always been constant; I have simply never been afraid to be wrong. I have, however, been very afraid of being still and unimaginative in my general analytical approach. What relatively little I have been able to produce — with limited resources in comparison to the professional intelligence community — I have always been open to being wrong and being criticized (with the latter being quite instructive). If I knew all the facts with unlimited data, I'd be performing the job of either a historian or Nostradamus.

But what good are all the resources in the world if the approach is dictated, consciously or unconsciously, by an instilled and institutionalized abject fear of being wrong? Intelligence analysis is about determining and communicating what we think we know about what we think we know. If it were dealing with known facts, it would be the New York Times (OK, very poor example) and not a National Intelligence Estimate.

Those who consume intelligence products — from the President's Daily Briefing, to National Intelligence Estimates, to on-demand regional/conflict/groups reports and analyses and (closed-door) congressional reports and testimonies — must acknowledge the inexact nature of intelligence and stop demanding perfection. They must understand — and acknowledge to the writers and presenters — that they are dealing with intelligence analysis and not historical record. This will go a long way toward improving the product put before them, which is used to make critical national security decisions.

And while Michael Tanji's experienced insght is important, his solutions to the problem at hand are also straightforward.

The Fix?

Do it right and forget what the commentariat and pure-play politicians think. People who know intelligence know the difference between bad analysis and bad information. Lay blame where it belongs, not on the easy target. Most "intelligence" problems are information problems, or more precisely the lack thereof. Politicians: Don't hold a witch-hunt for collectors who do their jobs. Analysts: fill out your reporting eval forms; meet your collection manager and craft good requirements.

There is no fixing the newbies save for time on task. You could jump-start things by making it attractive to mid-careerists to return to the fold. Read any book on why employees leave (hint: it's not about the money) and it applies to the IC. Fix those things and watch the Lorax come back.

A while ago, while Porter Goss was at the CIA, Michael wrote a report titled simply "Why Intelligence Reform Matters". If you are concerned about or interested in the ailments of the American intelligence community, it's recommended reading.

With all of this, the question being bounced around today is whether or not Leon Panetta is the man for the job. As Eli Lake's report today makes clear, he comes with significant hurdles. Most notably questioned is his role in the extraordinary-rendition policy of the Clinton administration, as a man coming into the Obama administration vocally opposed to such practices. Ironically, the same incoming administration is already seeking to close Guantanamo Bay, the one detention facility under our own auspices (outside the continental United States) expressly for terrorists captured alive.

I remain unconvinced that Panetta is capable of, or even inclined towards, bringing about the needed reforms in the CIA, to say nothing of the myriad other alphabet soup agencies. I am, however, convinced at this point that such reforms can likely only be brought about by a talented and uniquely qualified individual from outside the established ranks of the intelligence community. Leon Panetta just doesn't strike me as "that guy."

The challenges ahead for American intelligence are clearly significant. Optimism, unfortunately, is a scarce commodity.

Timothy Geithner’s vs. Bernard Kerik’s ‘Hiccup’ – Whose is Worse?



by Anthony K. Modafferi III, Esq.

As an attorney and personal friend of Bernard Kerik, the former New York City Police Commissioner, the recent spectacle surrounding Obama’s nomination for Secretary of Treasury, Timothy Geithner, illustrates the overwhelming press bias in favor of Democrat appointees and politicians.

Prominent Democrats – including the President-elect – have labeled Geithner’s failure to pay taxes as a “hiccup,” or “honest mistake,” while excoriating Kerik for allegedly failing to pay nanny-taxes included in a charging instrument that puzzled the trial judge for its failure to abide by basic rules of pleading and which the prosecutor re-wrote to “fix” his sophomoric “mistakes.” The press has regurgitated the government’s charges without any investigation into the circumstances giving rise to these baseless charges. Instead, the press labeled Kerik a “disgrace” while, at the same time, preferred to describe tax-expert Geithner’s own failure to pay taxes as a “hiccup” or an “honest mistake.”
By failing to identify and investigate the real reasons for Kerik’s indictment, the press has instead been a willing ally of a government that the press warns we should distrust and, by so doing, enabled that government to perpetrate a grotesque injustice. The press routinely engages in such conduct when the object of the prosecution is a Republican. Never mind due process or the rule of law. We expect this conduct from the Democrat politicians who label the Republican Party “the party of corruption,” while ignoring the fact that three of their own Democrat governors have been disgraced for outrageous conduct and refusing to censure their own senators and members of the House for despicable conduct as well.
However, what’s truly outrageous is the silence by those who should be screaming the loudest, the people who believe and understand the challenges this country faces – those who know Kerik and how he put his life on the line for New York City and for our country for 30 years.
Some more examples illustrate this double standard.
On December 17, 2008, the Chicago Sun Times reported that Mr. Eric Holder, President-elect Barack Obama’s Attorney General Designee, had omitted a potential engagement to conduct an independent investigation for the Governor of Illinois on the vetting package submitted to the Senate Judicial Committee. Two days later, Mr. Holder allegedly submitted supplemental responses correcting the omission, and also included hundreds of other minor additions and clarifications to his employment record, "honors and awards," speaking appearances, media interviews and other press conferences. Should Eric Holder be charged criminally for one or more omissions from the initial completed package?
Ironically Mr. Kerik, who had been nominated for Secretary of the Department of Homeland Security by President George W. Bush in 2004, withdrew before he could be confirmed. Moreover, it appears that Kerik never completed the vetting package because he declined to accept the position just seven days after the President nominated him. Yet, the New York Prosecutor presumed to usurp the power of the President by charging Kerik with lying to federal investigators during his vetting process. Not because he submitted a completed vetting package to the government as did Mr. Holder, but because of an allegation that he did not disclose background information during a conversation with someone about a job that he did not accept.

The President-elect nominated Timothy Geithner as the Treasury Secretary who, surprisingly, failed to pay a significant sum in taxes to the IRS for a number of years. Furthermore, while neglecting to pay these taxes, Geithner accepted compensation from his employer, the International Monetary Fund, intending to offset the taxes he had not paid. Geithner’s explanation – that he was not aware of these problems until November 2008 when his nomination to the Obama cabinet was imminent - is implausible.

Geithner also appears to have employed a domestic servant that at some point became out of status – in other words, an illegal alien. According to press and media reports, Mr. Geithner also took taxable deductions for his children’s summer camp which, allegedly, he was told was inappropriate.

So here’s my issue: as the Treasury Secretary nominee, it is without doubt that Mr. Geithner’s knowledge and understanding of the federal tax laws is far more comprehensive than Mr. Kerik’s, a career police officer. That being said, will Mr. Geithner be held to a higher standard of accountability regarding his failure to pay taxes that by all accounts, he knew he owed?
The answer is no.

Contrast this with the Kerik situation. Kerik was charged criminally with several tax-related counts that experts in the accounting field, including both active and retired IRS agents, have deemed preposterous. The indictment alleges that in 2002, Kerik failed to account for income in the amount of $20,000 and should have paid taxes on that amount. Keep in mind this was a year in which it was reported that Kerik paid more than $300,000 in taxes alone. The IRS would never prosecute such a case criminally.
Will Mr. Geithner be charged criminally for his “mistakes” which demonstrably appear to be willful and intentional attempts to evade federal tax liability? Will the same prosecutor in the Southern District of New York pursue charges against Mr. Geithner?
The answer, again, is no.

The press is biased against Mr. Kerik and his former boss, Rudy Giuliani. In Mr. Kerik’s case, the New York Times spent five days from sun up to sun down attempting to locate and interview Kerik’s nanny. This time, unlike the Kerik nomination, Mr. Geithner is the “favored boy” and we can be sure that the press will do everything in its power to protect him from the same scrutiny that Mr. Kerik endured during his own nomination process. That scrutiny ultimately resulted in Mr. Kerik’s indictment for conduct stemming from a prior plea, ignoring the Justice Department’s own policy of refusing to charge conduct related to a prior state action because it implicates the Double Jeopardy Clause of the Constitution. The ridiculous nanny-tax charge which, while killing the prospects for Kimba Wood’s own attempt to become Attorney General during the Clinton years, did not stop her appointment as a federal judge in the same court now trying to criminalize Kerik.

In a nutshell, for more than four years now, state and federal prosecutors have been on a reckless crusade to keep Kerik under permanent indictment. In their zeal to destroy the man – and more so his former friend and colleague Rudy Giuliani – they have stretched the laws, bent the rules, violated attorney/client privilege, deceived a judge and illegally leaked privileged information to the press and media. A prosecutor in the state case even went so far as to order a subordinate to lie under oath before the Bronx Grand Jury in an attempt to secure a conviction against Kerik. Why hasn’t the press investigated Michael Caruso’s claims in a pending federal case that the New York Department of Investigation, headed up by partisan Democrat Rose Gill Hearn, demanded that he lie to the Grand Jury investigating Kerik?
Instead, in a federal indictment that a first year law student would know was defective as a matter of law, the prosecutors nevertheless filed charges that were time-barred, and violated United States Justice Department guidelines. This raises serious questions as to why the charges were brought in the first place. The press should be asking who in the Department of Justice signed off on this indictment. You have to wonder why Rev. Al Sharpton, Congressman Charles Rangel, Gov. Paterson’s Chief of Staff or Gov. Elliot Spitzer were not charged for similar conduct.

But we know the answer to why Kerik was set-up. Kerik was, and is, a scapegoat for the anger of those who couldn’t stand Giuliani and were fearful that he would be the Republican nominee for President. It was Kerik’s loyalty to Giuliani and his reputation as a no-nonsense manager who stepped on toes to get things done. It was his outspoken and unbending support for President Bush, the invasion of Iraq and the war against terror.
But I will always remember Kerik, to quote the New York Times, as a “comic book hero come to life”, who time after time throughout his career saved lives and helped others and, most importantly, helped a city and a nation heal after 9/11.

Unfortunately for Mr. Kerik and for our country, Kerik’s “hiccup” is our loss.

Obama Eligibility battle rages on 3 fronts

(Compiler's note: This is a must read article. This whole affair can and should be address by Mr. Obama. Every other citizen would have to show the basic documents of proof. It is all too easy and thus one can only believe that Obama is NOT eligible for the office of President of the United States. What other possible reason could there be for not showing the required documents? Even more of a question is why is this basic requirement being ignored my the general media and all elements of the U.S. Government?)

By Bob Unruh

Court, Congress and college challenged on constitutionality

Officials at Occidental College in Los Angeles, Calif., have been served with a demand to produce records concerning Barack Obama's attendance there during the 1980s because they could document whether he was attending as a foreign national – in one of three fronts now established by those contesting the president-elect's constitutional eligibility for the Oval Office.

The Supreme Court and Congress also both are being challenged to address the worries that Obama doesn't meet the requirements of the U.S. Constitution that the president be a "natural born" citizen.

WND has reported on a long list of legal cases raising questions over the issue, and several of those have reached the U.S. Supreme Court already. Justices have so far declined to give any of the cases full hearings on their merits, but another conference remains on the Supreme Court docket for Jan. 23 on the issue.

"If Obama is sworn in as president, we will file a Petition for Writ of 'Quo Warranto,' a case that will challenge Obama as being ineligible to serve as president because he is 'not qualified,'" said Philip J. Berg, a lawyer who has brought several cases to court. Berg, whose information is on his ObamaCrimes.com website, indicated the issue isn't going away.

Orly Taitz, a California lawyer

whose dispute remains pending before the high court, agreed, noting that one of the hearings already is scheduled for the days following Obama's inaugural on Tuesday.

Taitz said her arguments rest on precedents from both the California Supreme Court, which years ago removed a candidate for president from the ballot because he was only 34, and the U.S. Supreme Court's affirmation of that ruling. The Constitution requires a president to be 35.

In one of the latest developments, Gary Kreep of the United States Justice Foundation petitioned Occidental College with a demand for its records concerning Obama.

"The gravamen of the petition is the question as to whether United States Senator Barack Hussein Obama, of Illinois, is eligible to serve as president of the United States pursuant to the requirements for that office in the United States Constitution," he wrote. "The records sought may provide documentary evidence, and/or admissions by said defendant, as to said eligibility or lack thereof."

Where's the proof Barack Obama was born in the U.S. or that he fulfills the "natural-born American" clause in the Constitution? If you still want to see it, join more than 200,000 others and sign the petition demanding proof of eligibility now!

College officials confirmed they had gotten the notice, but had not decided how to respond, a decision that may be removed from their hands because of the team of lawyers Obama has engaged to prevent such inquiries into his past.

"Senator Obama has filed responsive pleadings in this matter and is represented by counsel, and has the opportunity to object to this production, should he so desire," the affidavit from Kreep said.

"Good cause exists for this production under Subpoena Duces Tecum, in that testimony will be elicited from the original records obtained through the witness named herein, and there is no other process available to secure said testimony," he wrote.

The lawsuits allege in various ways Obama does not meet the "natural born citizen" clause of the U.S. Constitution, Article 2, Section 1, which reads, "No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President."

Some allege his birth took place in Kenya, and his mother was a minor at the time of his birth – too young to confer American citizenship. They argue Obama's father, Barack Obama Sr., was a Kenyan citizen subject to the jurisdiction of the United Kingdom at the time and would have handed down British citizenship.

There also are questions raised about Obama's move to Indonesia when he was a child and his attendance at school there when only Indonesian citizens were allowed and his travel to Pakistan in the '80s when such travel was forbidden to American citizens.

The lawsuit on which USJF is working was filed on behalf of presidential candidate Alan Keyes and others, and describes the potential damage an ineligible president could create.

"Should Senator Obama be discovered, after he takes office, to be ineligible for the Office of President of the United States of America and, thereby, his election declared void," argues a case brought on behalf of Ambassador Alan Keyes, also a presidential candidate. "Americans will suffer irreparable harm in that (a) usurper will be sitting as the President of the United States, and none of the treaties, laws, or executive orders signed by him will be valid or legal."

On his ObamaCrimes.com website, Berg sent his message directly to the U.S. Congress.

He's asking in an open letter to members of Congress for congressional hearings "to determine the truth regarding qualifications of Barry Soetoro, otherwise known as Barack Hussein Obama…"

"As you must be aware, there are many unresolved questions concerning Soetoro/Obama's status or lack thereof, as a 'natural born' American citizen, as required by 'our' U.S. Constitution," he wrote.

He noted the failure by Congress to challenge Obama's eligibility during the process through which the Electoral College vote was adopted.

"Because of your failure to 'question' the eligibility of Soetoro/Obama, we are headed for a 'Constitutional Crisis.' Yes, a 'Constitutional Crisis' because Soetoro/Obama who appears not to be a 'natural born' U.S. citizen is 'ineligible' under 'our' U.S. Constitution to serve as president," he said.

He cited the document published on the Internet by Obama's campaign, the "Certification of Live Birth," as no more than an effort to "quash" questions. Other critics have noted the state of Hawaii granted such certifications to parents of children not born in the state at the time.

"Without truthful information concerning Soetoro/Obama's eligibility to serve as President, 'We the People' have been injured," he wrote.

Taitz took a different route, submitting to the U.S. Supreme Court a motion "to declare that by default, the president elect respondent Barack Obama has failed to qualify under [the] U.S. Constitution."

"Does the burden of proof lie with the petitioner to prove standing and evidence lack of qualification by a candidate/president elect, where election officers rely on a candidate's declaration? OR does the [Constitution] place the burden of proof on the president-elect to provide objective government certified witnessed proofs, with election officers under oath to challenge, examine and declare that the president elect has or has not qualified, enforceable by petition for redress of grievances?"

Not only has the respondent, Obama, "failed to submit proofs … for any of the qualifications," she wrote. "Respondent has hindered discovery."

She argued that having Obama declared ineligible until he would provide documentation would "cause far less political trauma" than allowing his inauguration because it would uphold the constitution.

She also raised the issue of the concealment of Obama's records.

"Obama has refused to submit certified copies of any of his original long form 'vault' birth certificates in Hawaii to any public officer or to any Petitioner. Relevant records in Kenya have also been officially restricted," she said. "Obama has sealed all educational records which might reveal his stated citizenship. These include Punahou High School, Occidental College, Columbia University, and Harvard Law School."

Her letter included a warning, too.

"Thirty-three democracies descended into tyranny during the 20th century by failing to uphold constitutional protections," she said. "Petitioner humbly prays this Court evaluate the Petitioner's case in context of how best to enforce restrictive qualifications for president to preserve the Constitution and Republic from tyranny."

WND twice has organized opportunities for readers to send FedEx letters to the Supreme Court, asking for consideration of the issue on its merits.

The most recent campaign generated 12,096 messages, following the earlier effort that resulted in 60,128 letters.

Obama has claimed in his autobiography and elsewhere that he was born in Hawaii in 1961 to parents Barack Hussein Obama Sr., a Kenyan national, and Stanley Ann Dunham, a minor. But details about which hospital handled the birth and other details provided on the complete birth certificate have been withheld by Obama despite lawsuits and public demands for release.

WND senior reporter Jerome Corsi went to both Kenya and Hawaii prior to the election to investigate issues surrounding Obama's birth. But his research and discoveries only raised more questions.

The biggest question was why, if a Hawaii birth certificate exists as his campaign has stated, Obama hasn't simply ordered it made available to settle the rumors.

The governor's office in Hawaii said there is a valid certificate but rejected requests for access and left ambiguous its origin: Does the certificate on file with the Department of Health indicate a Hawaii birth or was it generated after the Obama family registered a Kenyan birth in Hawaii?

Obama selects a Muslim with ties to Hamas to pray at the inauguration

by Robert Spencer

Mattson.jpg

In "Hamas Inauguration," the featured article at FrontPageMagazine.com today, I explain why Barack Obama's choice of Ingrid Mattson of ISNA to offer a prayer at his inauguration festivities is so unwise -- or worse:

Barack Obama isn’t wasting any time making an impression: he has selected the leader of a group that has been named an unindicted co-conspirator in a Hamas terror funding case to present a prayer during his inauguration festivities. Ingrid Mattson, president of the Islamic Society of North America (ISNA), will offer a prayer at the National Cathedral Tuesday.

Superficially, Obama’s choice is understandable: Ingrid Mattson is a Canadian convert to Islam who has carefully cultivated the image of a moderate spokesperson. Yet her organization’s record is not entirely clean. Federal prosecutors last summer rejected claims that ISNA was unfairly named an unindicted co-conspirator in the Holy Land Foundation terror funding case. And ISNA has even admitted ties to the Muslim Brotherhood and Hamas, complaining only that the government’s evidence for those ties came from old documents, but offering no proof that the organization had reversed course. In a memorandum on the Muslim Brotherhood’s strategy in the United States, a Muslim Brotherhood operative named ISNA as an allied organization in what it called “a kind of grand Jihad in eliminating and destroying the Western civilization from within and ‘sabotaging’ its miserable house by their hands and the hands of the believers so that it is eliminated and Allah’s religion is made victorious over all other religions.”

What’s more, in a CNN chat room on October 18, 2001, Mattson offered a subtle defense of Osama bin Laden. She avowed that “only a small number of Muslims throughout the world would support Osama bin Laden’s tactics.” (Emphasis added.) Tactics alone? Is that the only problem with Osama? Does she, then, hold to his goals? Mattson even suggested that “a larger number” of Muslims share bin Laden’s grievances, and that he was popular because the leaders of Islamic countries had failed their people: Muslims, she said, “turned to Osama bin Laden as a spokesperson…because they feel that no one else, including their own leaders, has spoken for them.” This disquietingly echoes the jihadist critique of secular regimes in Muslim countries such as Egypt and Pakistan: jihadists label such regimes illegitimate and apostate because they do not implement Islamic law in its fullness.

In 2002 she even asserted that in countries that were not functioning democracies, “‘extremism’ might seem to be the only rational choice, because extreme actions are the only actions that seem to have an effect.” This again gives the impression that bin Laden’s goals were laudable, and that he was driven by desperation to illegitimate actions in pursuit of a legitimate goal.

Mattson explained during the CNN chat that “Islam allows force to be used by legitimate authorities, to protect people, and to protect Muslim states, just as all nation states in the world permit themselves to use force to protect their security and interests. Again, the problem of individual Muslims taking up arms, becoming vigilantes, in a way, is related to their frustration with the lack of leadership on the part of their own government.” This implies that if the governments of Muslim countries had been waging jihad to protect Muslim states, Osama bin Laden wouldn’t have had to do so. Here again she implies that bin Laden’s goals are sound, only his means are questionable.

Mattson again reinforced the impression that she endorsed al-Qaeda’s goals, if not its means, when she referred (also in the CNN chat) to the “overthrowing of the caliphate” in the 1920s as “a plan of European powers for many years,” and claimed that “this deprived the Muslim world of a stable and centralized authority, and much of the chaos that we’re living in today is the result of that.” This does appear to be an endorsement of the jihadist goal of reestablishing the caliphate and uniting Muslims under its authority in a supranational state which could then, according to Islamic law, legitimately wage offensive jihad warfare against non-Muslim states.

Mattson also excused the virulent and violent Wahhabi movement in Islam, terming it “a reform movement that began 200 years ago to rid Islamic societies of cultural practices and rigid interpretation that had acquired over the centuries.” Mattson thus suggests that Wahhabism was a legitimate reform within Islam, asserting that “it really was analogous to the European Protestant Reformation” and noting that “the Saudi scholars who are Wahhabi have denounced terrorism and denounced in particular the acts of September 11” – but never mentioning the abundant evidence that high-placed Saudis have continued to support and finance global jihad terrorism.

Yet while curiously silent about the excesses and violence of Wahhabism, Mattson blamed the decline of the Islamic world on the West: “Well, the decline began with the colonization of the Muslim world by European powers. One of the first things the colonialists did was to dismantle the institutions of what we could call civil society. The Muslim world has until now not recovered from that dismemberment of its society.”

In reality, the colonial period did not begin until the 18th and 19th centuries, and would not have been able to begin at all had the Islamic world not already been in a period of steep cultural and military decline. Historian Philip K. Hitti describes the decline of Islamic thought as beginning far earlier than the era of European colonialism, saying that “the whole Arab world had by the beginning of the thirteenth century lost the intellectual hegemony it had maintained since the eighth.”

Mattson has also tried to set Jews and Christians against once another. Speaking at Harvard’s Kennedy School of Government in March 2007, Mattson said: “Right-wing Christians are very risky allies for American Jews, because they [the Christians] are really anti-Semitic. They do not like Jews.” Yet Mattson would be hard-pressed to produce any anti-Semitic statement from Christians who support Israel – any statement, in other words, comparable to an article posted at IslamOnline, “Jews as Depicted In the Qur’an,” which concludes:

After this clear explanation, we would like to note that these are but some of the most famous traits of the Jews as described in the Qur’an. They have revolted against the Divine ordinances, distorted what has been revealed to them and invented new teachings which, they claimed, were much more better than what has been recorded in the Torah. It was for these traits that they found no warm reception in all countries where they tried to reside. Rather, they would either be driven out or live in isolation. It was Almighty Allah who placed on them His Wrath and made them den of humiliation due to their transgression. Almighty Allah told us that He’d send to them people who’d pour on them rain of severe punishment that would last till the Day of Resurrection. All this gives us glad tidings of the coming victory of Muslims over them once Muslims stick to strong faith and belief in Allah and adopt the modern means of technology.

What is Mattson doing to combat these attitudes within the Islamic community? She never addresses them.

If Ingrid Mattson truly intends to be a voice for reform and moderation within the Islamic community in North America, and to reassure those who are justifiably alarmed by Obama’s invitation to her, she should explain her troublesome statements – especially those that apparently portray Osama bin Laden in a favorable light. She should also explain ISNA’s ties to the Muslim Brotherhood and Hamas, and confront honestly the elements of Islamic teaching that jihadists use to justify violence and make recruits among peaceful Muslims. Unless and until she does these things and others that would conclusively demonstrate her moderation, non-Muslims are justified in being appalled at Obama’s choice.