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Statement of Richard A.

Clarke Before the United States Senate Banking Committee 22 October 2003

Mr. Chairman, It is an honor to be asked to appear here today to offer some thoughts about the continuing problem of terrorist financing. Before I begin, I want to recall that you, Mr. Chairman, were a leader in the Congress in counter-terrorism long before September 11th and I had the privilege of working with you on the threat from al Qida when you chaired the Senate Intelligence Committee. Those of us who knew of your work then are greatly encouraged to have you leading the Senate's examination of terrorist financing.

Mr. Chairman, I am a private citizen and what I say here today are my personal views. They do not draw on access to current intelligence information, but do benefit from reviewing media reports, court documents, and discussions with those in government and in the banking and finance sector.

Despite the fact that CIA used to tell us that terrorist groups like al Qida do not need much money, we know now they do. Money is the mother's milk of terrorism. There are five specific points on which I would like to focus.

First, al Qida is an on-going significant threat despite early reports of its demise. The chief of Britain's MIS recently warned the threat posed by al Qida to security may remain for many years. Director-General Eliza Manningham-Buller said there was no prospect of a significant reduction in the threat from Islamist terrorism over the next five years. Ms

6 of 113 DOCUMENTS Copyright 2003 Federal News Service, Inc. Federal News Service October 22, 2003 Wednesday

SECTION: CAPITOL HILL HEARING LENGTH: 10046 words HEADLINE: PANEL ONE OF A HEARING OF THE SENATE BANKING, HOUSING AND URBAN AFFAIRS COMMITTEE CHAIRED BY: SENATOR RICHARD SHELBY (R-AL) SUBJECT: THE FINANCING OF TERROR ORGANIZATIONS PANEL I LOCATION: 538 DIRKSEN SENATE OFFICE BUILDING, WASHINGTON, D.C. WITNESSES: RICHARD CLARKE, CHAIRMAN, GOOD HARBOR CONSULTING

BODY: SEN. SHELBY: (Sounds gavel.) The committee will come to order. Today is the second in a series of hearings concerning the difficult issues surrounding the financing of terror. This committee's comprehensive review of the United States' campaign to starve the terrorists of their funding began with a look at the administration's current organization for this task. Our first hearing began to develop the theme that diplomacy is an equal partner of enforcement, and that intelligence used in the analysis for the prevention of terror acts is every bit as important as evidence garnered from criminal prosecutions. The testimony from the first hearing will also allow the committee to review the effective organization of the many agencies of our government which address terror finance issues. Today the committee will hear from experts in terror organizations and their allies. For many years the United States focused on state sponsors of terrorism. Later, faced with the threat of organizations beyond mere political boundaries, we began to look at the international actors who could threaten our citizens worldwide. Now with terrorism on our shores, we see that terror organizations, using both simple and sophisticated schemes to infiltrate the United States, must make allowances, even with entities not sharing their ideology. Our witnesses today will assist us in understanding the underpinning of these relationships. It will be important to explore the soft underbelly of terrorist support, so that we may dismember and gut, discourage. We are privileged today — very privileged — to have as our first panel Richard A. Clarke. Mr. Clarke has spent a career relentlessly pursuing terrorists, while suffering the day-to-day frustrations of this complex pursuit. He has spent an unprecedented 11 years service in the White House for three different presidents. His positions included special assistant for global affairs, special advisor for cybersecurity, and national coordinator for security and counterterrorism. His remarkable tenure was distinguished by hard work, dedication and frank yet sophisticated advice. Mr. Clarke, we welcome you and thank you for your important service to our country over the years.