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 Treasury Takes Action to Stem Funding to the Iraqi Insurgency


2/15/2005


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The U.S. Department of the Treasury again took action today against an individual whose efforts were helping to finance the Iraqi insurgency, as well as al Qaida. 

"Today's designation of al-Fadhli is another important step in breaking the financial ties the al-Zarqawi Network depends on to perpetrate acts of horror and violence against people of all faiths and nationalities," said Treasury Secretary John W. Snow.

Muhsin al-Fadhli was designated under Executive Order 13224 for providing financial and material support to the al-Zarqawi Network and al Qaida.  The U.S. is submitting al-Fadhli to the United Nations 1267 Committee, which will consider adding him to the consolidated list of terrorists tied to al Qaida, Usama bin Laden and the Taliban. 

Today's action follows on the heels of last month's designation by the Treasury of Sulayman Khalid Darwish.  Among other activities, Darwish recruited, trained and dispatched terrorist operatives to help carry out the agendas of both the al-Zarqawi Network and al Qaida.

Muhsin al-Fadhli is considered an al Qaida leader in the Gulf countries .  Information available to the U.S. Government indicates that al-Fadhli fought alongside the Taliban and al Qaida in Afghanistan where he served as a bodyguard and second-in-command for an al Qaida leader.  He also fought against Russian forces in Chechnya, where he trained in the use of firearms, antiaircraft guns and explosives.  Information available to the U.S. Government shows that in early September, 2001, al- Fadhli possibly received forewarning that U.S. interests would be struck .

Muhsin al-Fadhli's support for terrorism extends to Iraq where he is believed to be providing support to fighters against U.S. and multinational forces and is considered a major facilitator connected to the brutal terrorist, Abu Musab al-Zarqawi.  In an effort to solidify the support of key financial backers sponsoring attacks, al-Fadhli requested that tapes be made showing evidence of successful attacks in Iraq

Furthermore, Muhsin al-Fadhli was also involved in several attacks in October, 2002.  First, he raised money in Kuwait which was used to finance an attack on the French ship MV LIMBURG on October 6, 2002 which killed one, injured four crew members and released 50,000 barrels of crude oil along 45 miles of coastline.  Muhammad al-Hamati [AKA Abu `Asim al-Makki], an al- Qaida operative and a Specially Designated Global Terrorist, had called al-Fadhli in the wake of the attack on the MV LIMBURG, informing him that the first operation on the French oil tanker had been completed. 

Al-Fadhli was also suspected of having a connection to an attack against U.S. Marines on the Kuwaiti Faylaka Island on October 8, 2002 during which one U.S. Marine was killed.

In February, 2003, a Kuwaiti court convicted four suspects, including al-Fadhli, of providing funding for terrorist activities and undergoing military training in Afghanistan for purposes of terrorism.  The Kuwaiti court handed down five-year jail sentences to the suspects who had been arrested on October 30, 2002 and November 16, 2002 on suspicion of involvement in planning or supporting plans to conduct terrorist operations in the wake of the October, 2002 attacks on the French ship, MV LIMBURG, and against U.S. Marines on Faylaka Island.

Zarqawi was named a Specially Designated Global Terrorist on September 23, 2003. The Zarqawi Network, also know as Jama'at al Tawhid wal Jihad and Tanzim Qa'idat al-Jihad fi Bilad al-Rafidayn, was designated as a Foreign Terrorist Organization and a Specially Designated Global Terrorist on October 15, 2004.

Identifying Information

MUHSIN AL-FADHLI
AKAs:
 Muhsin Fadhil `Ayyid al Fadhli
Muhsin Fadil Ayid Ashur al Fadhli
Abu Majid Samiyah
Abu Samia
DOB: April 24, 1981
Passport#: Kuwaiti 106261543
Address: Block Four, Street 13, House #179
Kuwait city
Al-Riqqa area                                                  
Kuwait

Muhsin al-Fadhli was designated today pursuant to Executive Order 13224 chiefly pursuant to paragraphs (d)(i) and (d)(ii) based on a determination that he assists in, sponsors or provides financial, material, or technological support for, or financial or other services to or in support of, or is otherwise associated with, persons listed as subject to E.O. 13224.  Al-Fadhli also meets the standard for inclusion in the UN 1267 Sanctions Committee's consolidated list because of the support provided to UBL, al Qaida or the Taliban.

Inclusion on the 1267 Committee's list triggers international obligations on all member countries, requiring them to freeze the assets and prevent the travel of listed individuals and to block the sale of arms and military equipment.  Publicly identifying these supporters of terrorism is a critical part of the international campaign to counter terrorism. Additionally, other organizations and individuals are put on notice that they are prohibited from doing business with them.

Blocking actions are critical to combating the financing of terrorism.  When an action is put into place, any assets existing in the formal financial system at the time of the order are to be frozen.  Blocking actions serve additional functions as well, acting as a deterrent for non-designated parties who might otherwise be willing to finance terrorist activity; exposing terrorist financing "money trails" that may generate leads to previously unknown terrorist cells and financiers, disrupting terrorist financing networks by encouraging designated terrorist supporters to disassociate themselves from terrorist activity and renounce their affiliation with terrorist groups; terminating terrorist cash flows by shutting down the pipelines used to move terrorist-related assets; forcing terrorists to use alternative, more costly and higher-risk means of financing their activities; and engendering international cooperation and compliance with obligations under UN Security Council Resolutions. 

Since September 11, 2001, the United States has designated 398 individuals and entities as terrorists, their financiers or facilitators, as well as worked with the international community to freeze over $147 million worldwide in terrorist-related assets. 

 

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