Due to the volume of inquiries we received, this week's feature article is an excerpt from the presentation on terrorist financing delivered at a Massachusetts eCommerce Association meeting held on September 20. The meeting was oversold and included a panel discussion among representatives from the financial services industry, technology suppliers, and government agencies. They responded to the scenario raised in our Case Study and provided information on the US Patriot Act and other means by which the financial services industry can help to counter terrorism.

The next event in this series on the extended enterprise is scheduled for November 22. The topic is how to balance privacy and security, and the case study is based on using aggregation services and an identity theft scenario.

For details on how to obtain the complete Case Study, reference materials, and meeting transcript, of the last meeting, or for information on participation in the next, please send email to .

CONTENTS:

NEWS HIGHLIGHTS OF THE WEEK:

1. World
2. Africa
3. Americas
4. Asia Pacific
5. Europe
6. Middle East
7. South Asia
8. Cyberterrorism and Information Warfare
9. Finance
10 Human Rights
11. Law and Legal Issues
12. Narco-terrorism
13. Transportation
14. Weapons of Mass Destruction
15. Recently Published

FEATURE ARTICLE:
Excerpt from "The Role of the Financial Services Industry in Combating Terrorism: A Case Study of Transfer Agencies".

NEWS HIGHLIGHTS OF THE WEEK

1. World

The annual meeting of the International Monetary Fund will begin this week. Discussions are likely to focus on economic recovery, growth in the European and Japanese economies, and the risk of growing public sector deficits in the US. Another major plan that will be considered is the IMF proposal to reduce debt loads for developing nations.

It was a turbulent week at the United Nations, and the storm signals are increasing in light of the unexpected agreement by Iraq to readmit weapons inspections followed immediately by US insistence that was insufficient and the issuance of a new foreign policy by President Bush (see Americas).

2. Africa

The African Union has developed a convention to combat the endemic corruption that is costing the continent billions, increasing the costs of development, and holding back international investment and aid.

The United Nation reviewed NEPAD's plans for economic development last week. One of the first priorities will be combating the AIDS pandemic.

Algerian government forces have killed dozens of Islamic militants, many from the Armed Islamic Group (GIA) , in several incidents during the week. They have also arrested 15 accused of providing support to the Salafist Group for Preaching and Combat (GSPC).

Angola's army has launched an attack against Cabinda Enclave Liberation Front (FLEC) separatist rebels, killing an unknown number of people.

In Burundi 173 civilians were massacred by the army. Rebels of the Defense of Democracy (FDD) were blamed for the attack, with the army claiming the dead were hostages and accomplices of the rebels. South Africa is attempting to mediate peace talks between the government and the FDD and other rebel groups.

Cameroon's leader of the separatist Southern Cameroons National Council, George Shiynyuy, has died in custody, apparently the result of torture.

In Democratic Republic of Congo, Rwandan troops continue their withdrawal under the terms of their recent peace plan. There have been numerous violent incidents, including a clash with rebels that killed more than 80, accompanying the withdrawal. DRC President Joseph Kabila has appealed to the United Nations for additional help to bring peace.

Loyal troops in the Ivory Coast are battling rebel soldiers who attempted a coup earlier this week. Fighting continues near the border with Burkina Faso. Deposed former military dictator Robert Guei was killed in the fighting. France has sent troops.

Kenya's Constitution Review Commission has recommended a 2-chamber parliament with an executive prime minister and the power to impeach the President. Meanwhile, the battle over President Daniel arap Moi's succession continues. Student protests drew in riot police who used tear gas and live ammunition to disperse the crowd.

Lesotho's High Court has found the Canadian engineering firm Acres International, guilty of bribery and imposed a fine. The company will appeal and has said such a move will impede development. The implications of this decision could be widespread for two reasons. First, because Lesotho earns foreign currency by exporting water from a dam built by Acres, to South Africa. And second because there is increasing pressure for good governance before guaranteeing new development projects. Check out The Economist "Corruption in Lesotho: Small place, big wave" in the issue of September 21 for details.

Liberians United for Reconciliation and Democracy (LURD) rebels have turned down Liberian President Charles Taylor's offer of peace talks and the removal of the state of emergency.

Nigeria has been trying to register voters in preparation for the voting next year. There have been widespread logistical problems that required suspending registration in some areas for a time, and now registration will be extended by a day to help compensate for the confusion.

Sierra Leone is the subject of an "international success story" in the Christian Science Monitor this week. Check out Danna Harman's report "Sierra Leone: The path from pariah to peace: How one African country went from a bloody 10-year civil war to a stable democracy in just two years", published in the September 18 issue.

Sudan continues its offensive against the southern Sudan People's Liberation Army while the US is attempting to resurrect the promising peace talks that had begun two weeks ago. See Andrew Harding's article "Sudan's tense frontline" online at http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/2271727.stm

Ugandan rebels of the Lords Resistance Army attacked a number of civilian targets last week, kidnapping more than 40 and hacking to death at least 14.

Zimbabwe is strengthening land laws and accelerating the evictions of white farmers, amidst widening hunger and the threat of measures against the government in the forthcoming Commonwealth meetings.

3. Americas

Belize and Guatemala have received detailed proposals to finalize their disputed border. It should be completed soon, followed by referendums to endorse it.

Brazil has closed its notorious Carandiru prison, scene of much violence including the massacre of over 100 prisoners after they protested their conditions.

A small bomb exploded at an air force office in Chile, causing some amage and one injury. There have been other such attacks but the perpetrator is unknown.

Colombia's labor unions staged a brief strike against President Uribe's proposed labor reforms. This is the first public protest against the new President. Meanwhile, the government claims they have killed 200 rebels of the Revolutionary Armed Forces of Colombia (FARC) in their recent air raids. The government has authorized the military to create two security zones under the ongoing state of emergency.

Cuba has angrily denied US government claims that it has acted to disrupt the "war on terrorism".

A fire that followed a jail riot in Dominican Republic has killed at least 28.

US President Bush has announced his new National Security Strategy that includes waging pre-emptive war while expanding trade and human rights. This controversial step is covered in excellent detail by The Financial Times in a collection of articles on "America's Security Strategy" published in the 21-22 September issue.

Domestically, wrangling over the Homeland Security plan continues. Criticism over intelligence failings has been thoroughly enough documented to overcome prior administration objections to an independent commission, which is now likely to proceed. The Immigration and Naturalization Service (INS) will not be able to meet the January deadline of a new student tracking system. A report by the National Academy of Sciences shows that the US is not equipped to deal with a terrorist attack against agricultural and food systems.

In Boston, a group called the New Black Panther Party has emerged, echoing the black power message of its 1960s predecessors.

4. Asia Pacific

After closures surrounding the September 11 anniversary, American embassies in Indonesia and Malaysia have reopened but under tighter security. In particular, threats from Indonesian Islamic militants are received regularly.

Japan and North Korea have reached a landmark agreement to begin establishing normal relations. This followed a breakthrough when North Korea admitted that its agents were responsible for kidnapping Japanese citizens. A chronology of events in "North Korea's Diplomatic Diary" is provided by Tom Zeller of the New York Times, in "Bipolar Diplomacy Disorder" published on September 22.

North and South Korea have begun mine clearing in the demilitarized zone that separates them.

There has been a wave of kidnappings in the Philippines. Two children of a congressman were released; it is not known if a ransom was paid. For details on the operation against Abu Sabaya, leader of Abu Sayyaf, read Raymond Bonner and Eric Schmitt, "Philippine Officials Detail the Trap, Set With U.S. Help, That Snared a Rebel Leader" in The New York Times, September 22, 2002.

5. Europe

Georgia has agreed to help from Russian and US special forces to clear Chechen rebels from the Pankisi Gorge.

Macedonia's peaceful elections have ushered in a new Social Democrat government. Following serious ethnic violence last year, this could usher in a new era of rebuilding.

A remote-controlled bomb exploded in Grozny, Chechnya, killing 11 civilians, and missing the Russian military vehicles that were apparently its intended target.

Ukrainian protesters emerged in their thousands to ask for the resignation of President Leonid Kuchma, accused of civil rights violations, corruption and misrule.

In Northern Ireland sectarian violence continues, including the shooting death of Stephen Warnock of the Loyalist Volunteer Force (LVF) and attempted murder Jim Gray of the Ulster Defense Force (UDA) (who was shot in the face), and a number of other shootings and attempted bombings. Ulster Unionist leader David Trimble has said it will end its participation in the power-sharing agreement unless the Irish Republic an Army (IRA) makes credible moves to disband and disarm. Sinn Fein responded that the unionists have had enough concessions and they should not be allowed to stop the political process. Northern Ireland secretary John Reid reminded all parties how much is at stake in continuing the peace process.

In Scotland, the Celtic Football Club has appealed to its supporters to stop chanting IRA slogans during the games.

6. Middle East

While the US pursues its primary agenda of removing Iraq's current regime, the "quartet" of the US, Europe, Russia and UN representatives attempts to re-launch the peace process between Palestinians and Israelis. They propose a phased solution, beginning with Palestinian elections, security reform, an pullback of Israeli forces, humanitarian steps and agreement on security; then the creation of a Palestinian state; then negotiations on permanent status. There seems to be little likelihood of movements on these measures in the current international climate.

Iran's Cultural Committee has given provisional approval for women to attend football matches.

Iraq continues to develop strong trade agreements with Russia and its Middle Eastern neighbors while preparing for a US attack.

Israel has announced that should there be a war with Iraq, it would not wait for instructions from the US (as it had during the Gulf War) but would retaliate as it sees fit. Israel is preparing for war as well, including offering smallpox vaccinations.

Israel was on high alert for the high holy day of Yom Kippur. Shortly thereafter, a suicide bomber set off an explosion that filled five and injured fifty. Israel immediately retaliated by blowing up the buildings surrounding Palestinian leader Yasser Arafat's compound, until everything around him was completely destroyed. Then they dug a trench, filled the area with barbed wire, and have begun cutting off utilities and water while flashing searchlights and demanding the release of suspected militants they claim are hiding inside the single remaining building. Several Palestinian protesters, objecting to this treatment, were killed by Israeli forces.

A Scottish family whose son, Yoni Jesner, was killed by this bomb, has donated his kidney to a Palestinian girl.

After Israel threatened war with Lebanon over water from the Hasbani river, US mediators have stepped in to mediate.

Lebanon and the Palestinians remember the 20th anniversary of the massacres of the Sabra and Chatilla refugee camps on September 16, 1982. Ariel Sharon was found responsible for this event, which prompted his resignation in 1983.

In the West Bank, a bomb, probably planted by Jewish vigilantes, exploded in a school, injuring five children.

A number of reports indicate that US activity against al Qaeda suspects in Yemen has intensified and that unilateral action within that country could be imminent. US officials have denied these reports. Yemeni officials have arrested five suspects.

7. South Asia

There have been a number of serious attacks in Afghanistan including attempted bombings, rocket attacks, and assassinations. President Hamid Karzai had a narrow escape in an attack that killed three. It has been proposed to turn protection of President Karzai to a private American security firm. There are continued problems with warlords and rumors that former Taliban leader Mullah Omar is regrouping.

The United Nations Development Program has written a detailed report that reviews the deteriorating law and order situation and recommends reform of the criminal justice system that now discriminates against the majority of the population, including women and the poor. In a northern police camp, four police were killed in an assault by suspected militants, probably from either the East Bengal Communist Party or the Sarbahara Party.

Andhra Pradesh, a state in southern India, suffered a landmine explosion planted by the People's War Group (PWG), that killed three excise officials.

Another southern state, Tamil Nadu, has had a child trafficking ring broken up, from which 42 girls were rescued. Tamil Nadu and neighboring Karnataka have had a long-running dispute over water from a shared river. Karnataka was asked to immediately release the water it had blocked.

In the Indian state of Gujarat, there has been more violence. A curfew was imposed following a clash between police and a mob that ended in one death and several injuries. The Indian Election Commission has suggested that Delhi take on direct rule of the troubled state.

Voting in Indian-administered Kashmir has been accompanied by sporadic violence, including three attacks on the state tourism minister and the deaths of Ali Mohammed Dar from the ruling party and two party workers. Attacks on a school killed one teacher and one student. At least nine rebels were killed by Indian soldiers.

Maoist rebels in Nepal called a general strike that shut down most of the country. Rebels have undertaken a number of attacks, including one against a helicopter. They kidnapped, and later released, the pilot and a passenger.

Violent attacks continue in Pakistan. A bus bombing killed one and injured nine. There have been a large number of arrests. (See Law and Legal issues below).

Peace talks between the Sri Lankan government and the Tamil Tigers have begun on an upbeat note. They are meeting in Thailand, with help from a Norwegian negotiating team. In a key concession, the Tigers say they will only push for a separate state as a last resort.

8. Cyberterrorism and Information Warfare

The US Bush administration released a draft of the National Strategy to Secure Cyberspace. While it contains some 60 recommendations, they have been left very general and there are no enforcement mechanisms.

Fifteen members of Falun Gong are on trial in China for hacking into the cable network and broadcasting their own messages.

An unnamed man has been arrested by the UK Computer Crime Unit for writing and distributing the TOrn rootkit Linux hacking tool.

9. Finance

Sani Abacha, son of the former Nigerian dictator, was re-arrested upon his release from prison on bail on charges of corruption and money laundering.

Algerian forces have arrested 15 people accused of providing support to the Salafist Group for Preaching and Combat (GSPC).

Grenada shutdown another four offshore banks, bringing the total to 36, (nine are left open) in their continued efforts to comply with Financial Action Task Force (FATF) anti-money laundering rules and terrorism financing.

The Taibah International Aid Association, an Islamic charity, has been tied by a Bosnian government report, to possible fraud and ties to Islamic extremists. See Glenn Simpson's article "Report Links Charity to an al Qaeda Front" in The Wall Street Journal of September 20, 2002.

Eleven men were arrested in London, England, on charges of providing logistical support to an Islamic militant group linked to al Qaeda. Investigations are expected to uncover information about hidden bank accounts and other financing mechanisms.

The US Treasury Department released proposed rules, driven by the US Patriot Act, that would regulate hedge funds and require insurance companies to implement money-laundering identification and reporting systems.

10. Human Rights

Burma's human rights representative from the United Nations will investigate allegations of systemic rape of ethnic Shan women in the northeast.

The Caribbean Community is establishing its own supreme appellate court to replace that administered by the UK and speed up executions of convicted murderers.

Chinese AIDS activist Wan Yanhai has been released from prison after agreeing to confess that he had sent confidential state documents abroad, thus leaking state secrets and breaking the law.

Convicted French collaborator Maurice Papon was released under a new law that provides for prisoners to be freed on grounds of health. The government will appeal this release of the notorious Vichy war criminal.

Ferdinand Nahimana, Hassan Ngeze and Jean-Bosco Barayagwiza will stand trial before the International Criminal Tribunal for Rwanda on charges they used their media positions to fan the flames of the 1994 genocide.

Mazen al-Najjar was an engineering instructor at the University of Southern Florida when the September 11 attacks took place. Caught up in the immigration roundups that immediately followed, he was deported on immigration violations and it was claimed, though no evidence was ever offered, that he had links to terrorism. Upon his expulsion, he was sent to Bahrain, who refused to take him, so was rerouted to Ireland then Italy then to Lebanon, which finally agreed to issue a 6-month visa. Now Lebanon has revoked the visa. He was fired from his USF position and had planned to take a teaching position in South Africa but that was rescinded. He is now an unemployed, stateless refugee, against whom no evidence was ever presented. It is unknown what state will accept him.

The UK is scheduled to withdraw 1,850 peacekeeping troops from the Balkans. This would still leave about 2,500.

Bosnian Serb General Momir Ralic on trial for genocide will be allowed to return to Yugoslavia because he has been diagnosed with incurable cancer.

11. Law and Legal Issues

Sahim Alwan, Mukhtar al-Bakri, Faysal Galab, Yahya Goba, Shafal Mosed, and Yasein Taher were arrested in Buffalo, New York, on suspicion of constituting an al Qaeda sleeper cell. The Justice department wants to refuse bail, but the judge has questioned whether a visit to a camp in Afghanistan broke the law.

Muhammed Abdulah Azam has been charged in British court under the Terrorism Act 2000 for having books about bombmaking.

Ramzi Binalshibh, a senior al Qaeda member, was arrested in Pakistan. Germany has said it will not extradite him, and American authorities will extradite him to the US.

General Janko Bobetko has been indicted by the International War Crimes Tribunal for Yugoslavia on charges of war crimes committed against Serbs by the Croatian army under his command. The Croatian government has rejected the indictment as being procedurally flawed.

Rabih Haddad, accused of using his charitable organization to send money to al Qaeda, has been granted an open hearing by a federal judge in the US. If the open hearing is not given, he must be released within ten days.

Othman Said Kianiya has been charged with planning to poison customers in a Jerusalem restaurant. Israeli authorities have accused him, with his colleagues Sufian Bakri Abdu and Moussa Mohammed, of attempting this action on behalf of Hamas.

Mullah Krekar (a/k/a Najm Faraj Ahmad) will be detained another 20 days on order of a Dutch court, to allow consideration of an extradition request from Jordan. He is suspected of leading the militant Ansar al-Islam (Partisans of Islam) and is wanted by Jordan on drugs charges.

Lesley McCullock, a British academic, and Joy-Lee Sadler, an American nurse, have been arrested in Indonesia on suspicion of supporting rebels in the Aceh province.

Uskar Makawata has been arrested by Philippine authorities on suspicion of involvement in the April bombing in General Santos city.

Masood, owner of an ice cream shop in Karachi, Pakistan, and four of his colleagues was arrested for supporting the militant Harkat-ul-Mujahideen.

Zacarias Moussaoui has filed court motions that have been kept under seal because the judge says he uses inflammatory language, threats and racial slurs, and calls to action for al Qaeda.

Juan Antonio Olarra and Ainhoa Mugica have been arrested by French police for their suspected role in the Basque separatist group ETA.

Abu Salem, one of India's most wanted, has been arrested in Portugal. He is suspected in many cases of murder, kidnapping and extortion and of the series of bombings in Bombay in 1993 that killed more than 200. India is requesting his extradition.

Andre Shoukri, a leading loyalist in Belfast, Northern Ireland, was arrested on gun charges.

Clayton Lee Wagner has been indicted on charges of mailing anthrax threat letters to women's clinics around the US last year.

Sharib Zubair was arrested in Karachi for his suspected role in bombings and the attempted assassination of President Musharraf. Six of his colleagues were also arrested.

Singapore has arrested 21 suspected members of Jemaah Islamiyah.

12. Narco-terrorism

Mullah Krekar (a/k/a Najm Faraj Ahmad) will be detained another 20 days on order of a Dutch court, to allow consideration of an extradition request from Jordan. He is suspected of leading the militant Ansar al-Islam (Partisans of Islam) and is wanted by Jordan on drugs charges.

See "Super-speedboats piloting Colombia's cocaine trade: Almost a ton of drugs leaves the country daily in 30-foot 'go-fasts': a risky, but lucrative, smuggling business." By Martin Hodgson, in The Christian Science Monitor, September 18, 2002.

13. Transportation

The US Senate is now likely to grant a delay to the Transportation Security Administration for their implementation of baggage screening. Initially scheduled for December 31, it may be delayed as much as a year.

14. Weapons of Mass Destruction

The US Bush administration has pulled out of negotiations to strengthen the Biological Weapons Convention.

There is a vaccine shortage in the US, leading to rationing of vaccines for children and pointing out a significant vulnerability in the US healthcare system.

Although Clayton Lee Wagner has been indicted on charges of mailing anthrax threat letters to women's clinics around the US last year, the perpetrator of the actual anthrax attacks has still not bean found. William J. Broad and Denise Grady, writing in the New York Times of September 16, review what happened to the victims in "Science Slow to Ponder the Ills That Linger in Anthrax Victims".

The release of details of the extent of safety problems in the Japanese nuclear program have eroded public confidence and may regenerate anti-nuclear protests, particularly in the face of continued public denial over the chronic problems.

Protesters greeted the return of plutonium to Sellafield in the UK after they were rejected by Japan. The protesters raised the possibility of a terrorist attack in shipping this waste.

15. Recently Published

Bonner, Raymond and Eric Schmitt, "Philippine Officials Detail the Trap, Set With U.S. Help, That Snared a Rebel Leader" in The New York Times, September 22, 2002.

Broad, William J. and Denise Grady, "Science Slow to Ponder the Ills That Linger in Anthrax Victims", The New York Times, September 16, 2002

The Economist "Corruption in Lesotho: Small place, big wave" in The Economist, September 21, 2002.

Financial Times feature on "America's Security Strategy", a collection of articles in the Financial Times, 21-22 September 21-2, 2002.

Harding, Andrew "Sudan's tense frontline" BBC News, September 21, 2002 online at http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/2271727.stm

Harman, Danna "Sierra Leone: The path from pariah to peace: How one African country went from a bloody 10-year civil war to a stable democracy in just two years", Christian Science Monitor, September 18 issue.

Martin , Hodgson, "Super-speedboats piloting Colombia's cocaine trade: Almost a ton of drugs leaves the country daily in 30-foot 'go-fasts': a risky, but lucrative, smuggling business." in The Christian Science Monitor, September 18, 2002

Simpson, Glenn "Report Links Charity to an al Qaeda Front" in The Wall Street Journal, September 20, 2002.

Zeller, Tom. "Bipolar Diplomacy Disorder", in The New York Times, September 22, 2002.

FEATURE ARTICLE:

Excerpt from "The Role of the Financial Services Industry in Combating Terrorism: A Case Study of Transfer Agencies" presented at the Massachusetts eCommerce Association meeting of September 20, 2002. Written and delivered by Anna Sabasteanski. For questions/comments related to this material, email the author at .

1984 was the last year I was resident in London. That year, the Irish Republican Army was responsible for 414 terrorist attacks.

Sound like a lot?

In fact, these 414 attacks represented the lowest level since 1970.

414 attacks... that's a lot of bombs and guns. Where did they come from?

The Irish Republican Army had four major sources of support. These are the same sources of financial and other support that all terrorist groups have used in the past and continue to use today: Commerce, Country, Charity, and Crime.

Some of the IRA's income was from legitimate businesses. Some IRA sympathizers had small businesses that provided a front for illegal operations, but others were genuinely profitable. Instead of channeling the profits into foreign cars, diamonds and expensive single malts, the profits were quietly channeled to the cause of liberty for a united Ireland. This, by the way, is exactly what Osama bin Laden has done with the profits from his legitimate construction and other businesses. Most successful terrorist leaders have also been very successful businessmen.

The second source was foreign governments. For example, Libya was a popular place for training, and some arms were smuggled by regimes that supported the Marxist leanings of the IRA. Although state-sponsored terrorism was at its height in the form of proxy wars fought between the US and the USSR during the cold war, it does continue, to some extent, today. In a peculiar twist on this theme, bin Laden's wealth propped up the Taliban "government" rather than the other way around. The oil wealth in the Middle East that had funded violent political protests in the 1970s has, quite literally, dried up and is no longer a major source of terrorist financing.

Back to the IRA, we come to their two largest sources of funding, crime and charity....[and] we'll look at the IRA experience as an example of how successful these tactics can be, and how difficult they are to combat.

Conflicts between the two islands of Ireland and the United Kingdom have gone on for centuries, battling over land, religion, politics and human rights. The boundaries between the Irish Free State and Northern Ireland were drawn up, under the Anglo-Irish Treaty, in the 1920s to divide the Catholic south (comprising 26 counties) from the six counties in the wealthier (at that time) Protestant north....One of the consequences of the new boundaries was that some of the properties along the border spanned both sides.

Thomas Murphy has a large and highly profitable farm in South Armagh, with a barn smack on the middle of the border.

[ see James Adam's description of his pig smuggling activities, from his book "The Financing of Terror" (NY: Simon and Schuster, 1986. pp. 157-8) not included here]

By these means, Thomas Murphy was able to channel as much as $12,000 a week to the IRA -- more than $3 million a year.

Common market investigators who looked into frauds later acknowledged that "the cattle in the area were being sent back and forth across the border so regularly that 'they knew the way by themselves'. (Adams, op. cit. p 158) This didn't stop the practice. When the pig subsidies ended, Murphy switched to grain.

And right now, illegal petrol stills and smuggled cigarettes are the favorites among the smugglers of Northern Ireland. Fuel laundering along the border was making millions each year, but Operation Spendthrift launched in December 2001 seriously disrupted the operations. Disrupted, mind you -- not stopped!

There's something else I should perhaps mention.

Thomas Murphy, a great football (that is, soccer), lover, great company in the local pub, a great hand with his animals, and a millionaire farmer, has another job as... the Northern Commander of the IRA and leader of the South Armagh Active Service Unit. (There's an organization chart included in your case materials binder.) He has funded and planned numerous murders of individuals in the security forces and to make points to civilians and to the members of his own organization. He has funded and planned attacks including the Docklands bomb and the Narrow Water massacre and many others.

...
This story and the use of crime to finance IRA activities is told more fully in the Case Study. You each have a copy of this in your binders as well.

The other area we cover in detail is the use of charitable contributions to fund terrorism.

To talk about this, we need to look at another individual. This time, the honored and respected Irish American immigrant, Michael Flannery.

Michael Flannery was born in Ireland, the youngest of seven children, in 1902. His family had a long history of fighting for Irish Republican ideals. Remember, please, that in Ireland, a Republican is one whom wants a united and independent Ireland, while the "Loyalists" are those who want to maintain a partitioned state, with a Northern Ireland a loyal part of the United Kingdom.

Flannery fought in the Irish War of Independence, was imprisoned for his actions, and immigrated to America in 1927 where he worked for Metropolitan Life for forty years. He was a beloved member of the Irish community, responsible for pulling together a wide range of republican sympathizers including prominent political and social figures, until his death in 1994.

Mr. Flannery...was perhaps best known for founding the Irish Northern Aid Committee, or NORAID, a charity that raised money to support the dependents of Irish political prisoners.

He got the idea for this charity after the IRA approached him for a contribution. He wrote out a check, mailed it in, and it was promptly returned. He immediately realized that he needed another channel, something a little less obvious, through which to offer his contributions, and NORAID was born.

At the height of violence in the 1970s, seen by US sympathizers as legitimate political protest, NORAID supplied around half the cash needed by the IRA in its campaigns. They received a huge boost during the hunger strike campaigns in the early 1980s.

But a combination of propaganda campaigns by the US and UK governments, along with bad publicity after the murders of Lord Mountbatten and his family - blowing them to pieces in their boat -- greatly reduced the amounts that were raised. Attempted prosecutions for gunrunning and tax fraud had less success, but also contributed to the decline in the volume of contributions.

As NORAID's reputation was under attack, so reducing charitable contributions, Flannery began the National Irish Freedom Committee. There are a number of similar charities that purport to provide aid to rehabilitate political prisoners, help the families of prisoners or those killed or injured, and so forth.

If you go to NORAID's web site, you can buy a vast selection of republican paraphernalia: T-Shirts, books, videos, buttons, and so on.

This is much more public and respectable in the US than Hamas. But it's important to draw a parallel. Hamas is the largest charitable organization in the Middle East. They provide healthcare, education, food and clothing to desperate people, including Palestinian refugees. Their annual budget, up to $100 million, is almost entirely spent on true humanitarian purposes. But a small part of that budget, less than five percent, is spent on terrorist activities, mostly bombings.

I have tried to keep this discussion personal, talking about Tom Murphy and Mike Flannery, because terrorism is personal. Wars may be fought between governments, but terrorism is about people.

In the panel discussion we are about to have, we will talk about regulations and processes and technologies as things that can help us combat terrorism. But we will also talk about people, because in the end, it does come down to individuals -- to all of us.

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