By Brigitte L. Nacos
Shortly after 9/11, when the Bush administration intensified efforts to interrupt the flow of money to known terrorist groups, the President and then Secretary Colin Powell said that money is the oxygen of terrorism. While there is no doubt that terrorists need money to finance their operations, they have at all times found ways to support themselves and their violent deeds, often by committing crimes--from drug smuggling to bank robberies to extortion. And whereas terrorists and, even more important, the supporters of terror organizations have used the formal banking system for money transfers, they have also utilized informal fund transfers, namely the so-called hawala system. For years it was not a secret that the United States, many other countries, and the United Nations made great efforts to prevent the formal transfer of money for the benefit of terrorists.
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