_[Airother redactions on this page made pursuant fe ban to exemptions (b)(6) and (b)(7)(C) I& ASSOCIATES Ades - pT Sa January 19, 2005 Robert W. Wemer Director, Office of Foreiga Assets Contto! USS, Department of the Treasury 1500 Penzsylvania Avenue, N.W. Washington, D.C. 20220 (EH) Re: KANN: Request for Reconsideration of Designation of So athe Pursuant 1031 CPR. § 801.807 (2064) Dear Mr. Werner: 1am writing on behalf of Soliman H, Al-Buthe, whom the Office of Foreign Assets Control ("OFAC") added to its SDN list as @ Specially Designated Global Terrorist on September 8, 2004. The purpose of this letter is to request formally thal OFAC reconsider his designation and remove Mr, Al-Buthe's name from the list for the reasons set forth Bockeround: The MMMM ravelers' Checks The genesis of Mr. Al-Buthe's designation appears to be the sesult of his facilitation in ‘March 2000 of the transfer of approximately $150,000 from a| through a bank in Ashland, Oregon, 1o Al Fiaramain Islamic Foundation (AHD Saudi Arabia. This letter explains the circumstances involved in that transfer with the expeciation that the cleating of this issue should remove the last impediment 10 the removal of Mr Al-Buthe’s designation, By way of background, Mr. Al-Buthe is a Saudi Arabian national who was born in| IMs. Al-Buthe is ¢ 1986 graduate from King Saud University in Riyadh, Sandi Arabia, he has 3 Bachelor of Science degree in Agriculture and is currently c ‘operations & beautifications 001354 LocRaaR-orts9All redactions on this page made pursuant to ‘exemptions (b)(6) and (b)(7)(C) Rober: W. Werner Director, Office of Foreign Assets Control January 19, 2005 Page 2 For several years Mr, Al-Buthe had served as en unpaid volunteer for Al-Hsramain Islamic Foundation (“AHIEF"), he terminated his relationship with AHIF in September 2002 largely as result of RMI © According to press reports, AEF was formed in 1988 dy Agi! al-Agil, who served as director until OFAC listed him as a SDN-SDGT. In 1993 Mr. Al-Buthe began te work for Al Haramain as an unpaid consultant wha was frst tasked with developing the AHTF website: he had no specific job description, That role evolved overtime to the point that Mr. ALButhe came to be responsible for Internet activities and then for charitable works in the United States, AHIF first became interested in activities inthe United States when jt was contacted by commonly known in the West 2s Oregon. (RIM was then hgassor the Quran foundation, at Oregon nonprofit domestic corporation which was formed i flliland which was actively distributing Isiamic literature, primarily to prisons. AHIF had becn involved in istributing such literature over the worl, snd fad learned that the cost of international shipping ‘of such materials could be prohibitive. It was thus decided that a representative from AHIF would mest with to discuss how such Islamic literature could be obtained and distributed most effectively in the United States. Mr, Al-Buthe first visited [IIE in Ashland in 1997. At hat ine religious activities were being conducted out of hi ‘Al-Buthe reported back to AHTF RR 1: cistidusing literature through ald be much more cox effective than sending lerature from the Middle East was solely responsible for making the decision to establish a branch in Ashland, Oregon, and he decided that AHF should do so Al Heramain Foundation, an Oregon assumed business name (“AHIF Oregon”), was registered with the Oregon Secretary of State on October 22, 199 located a building to acquire for those purposes and AHIF Oregon agreed with] juran Foundation that the AHIF Oregon property could be used for distributing religious titerature “to promote peace through understanding of Islam,” (Emphasis in original.) A “Declaration of Cooperation Statement’ executed by AHIF Oregon and Quran Foundation states explicitly, “We all mutually stand against terrorism or ever engaging in any subversive activities against any governnients, ace or gender.” A copy of the declaration is attached as Exhibit ) Mr. Al-Buthe was active in raising funds for the Ashland property from Saudi Arabian sources and, under the immediate and close supervision of EI] was also responsible for disbursing the amounts reguired for ongoing operations. Ata later time AHIF decided to assist in the purvhase of a mosque in Springfield, Missouri, which was accomplished through ANTE See Eni 8 athe, 200, roper, Saute can” Azer atl sete Hom hls atjnveece coun 001355 Leora sR-o1s160|. ‘Allredactions on this page made pursuant to exemptions (b)(6) and (b)(7)(C) Rober W, Werner Director, Office of Foreign Assets Contol Tamuary 19, 2005 Page 3 Qregon. Mr_Al-Buthe brought cash equivalents with him (usually in the form of travelers’ checks) on his short visits to the United States, in all instances indicating on the approprite customs forms required to be completed to unter the country that he was bringing money with him tn March of 2000 Mr, ALBute ravcled othe United States for the purpose of asistng in establishing an Islamic website, Islan'Today = While enroute to the United States Me Air Buthe leaned that MIMI 2d contributed MMMM co AVIIF Ocegon. designating it for Chechen relict effors. Although Mr. Al-Buthe is uncertain hy MMIII (orhom Mr Al- Buthe has never met) sent the contribution to the United States instead of Saudi Arabia, he speculates that there probably are fewer restrictions on effecting such ttansfers into the United Sinies He further speculates tha it may have been we case thet fies vesponding 10 website insructions or adverisements tat had been published in Islamic magazines direc Contributions tothe Usted States. In any even, desieg to accomplish as mach as posible Ghring te short business Lip, Mr Al-Buthe nade arrangements io avel to Ashland to obsin HMMM -obution forthe purpose of tuming ove to one ofthe fondraisers nthe AFT ceniralofee in Riyach, ‘Thus Mr A} Buthe flew from New York to Sun Francisca to Medfor, Oregon, and then drove to Ashland When Mr. ALBushe aived in Asband,KIBen to he Bank of Ameria branch n which AHIF Oregon had its account and requested to withdraw the [Rg Consbotion, ile ues ea fn traveler’ check, for hs pricy experience had aublted that wavelets’ checks weetReeen fom Corramparine naif: oocere of Pee ete egret ocean ater deposited in overseas banks) According tte Aa AA» Suppo ot Search Warrant for the a Al-Haramain premiscs (MEE \ffidavit™), “the bank amployee ed to convince IMI to whe scars ches nnend fof traveler’ checks In 2 a aga 30M een art (ceria re! andthe Zllowing doy he obtained 8 Csshicr's chet nemmoth Of 821,000, Mr AlButhe took the bth ibs tavels” checks end the cashier's check with him when he departed the United States and ultimately turned them over to ANIF personnel in Riyadh “The surrounding circumstances clealy indicate that Mr, Al-Buthe's conduct was completely inoocent. Fst, MaGIMMbed ir Al-Bhe accepted the ok ging 20d {iene emhier's check forthe eat amount instead oT raelos® cocks ere almost certainly would be no bass for on claim of wrongdoing This because ass tlt in the MMMM) Altidavir ax $46) bank checks that are not inimediately negotisble by the beast 001366 LocRaaR-o1t61All redactions on this page Kalen Wee made pursuant to exemptions Direcior, Office of Foreign Assets Control by(6) and (b)(7} January 19, 2005 {o}{8) and ()7C) Page 4 do not rigger liability under transaction reporting rules? Second, the circumstances involved clearly indicate an innocent intent, Had Mr. Al-Buthe known of and intended to violate the reporting requirement, he certainly would not have insisted upon taking the entre jn travelers’ checks from one bank; rather, he likely would have attempted to “structure” the swithdrawals to avoid detection. Furthermore, had Mr. Al-Buthe known of the reporting. ‘requirements, he sso mast likely would have knos that banks are required by law to report any suspicious transactions in an amount in excess of $5000," and thorcfore realized that the Bank of ‘America almost certainly would report his withdrawal. There was nothing clandestine in Mr Al- Buthe's conduct. For its part, certsinly the bank Anew that Mr. Al-Buthe was not u permanent resident of the United States, and certainly the bank dew that Mr. Al-Buthe intended to take the money with him when he left the United Siates (indeed, why eise would a departing foreigner ask for travelers’ checks?). Quite simply, Mr Al-Buthe did not report that he was carrying travelers’ checks when he left the Unite States because he de no know that such reporting was required for money Jeaving the United States * In sum, itis clear that Mr. Al-Buthe did not Jntend to conceal the fact that he was planning on taking the funds out of the United States.* ‘Addressing the events in Chechnya, Mr. Al-Buthe has never traveled to that country and lias no first-hand knowledge of the AHIF's activities there At no time has he ever had any contro} over AHIF's activities in Chechnya. Any funding of activities in Chechnya was by ‘officials ip Saudi Arabia, including Saudi governmental authorities; indeed, in 1999 the Seudi ‘Arabian government began contsolling ard coordinating AHIE’s chasitable activities in the area See Exhibit 2, a January 8, 1999, telegram from the President ofthe Council of Ministers to ‘Saudi yoverninental authorities asserting governmental control over four charities. including AUF, that were providing aid to Kosovo refugees. Moreover, the Saudi activities in support of CChechyn refugees were welcomed by the Russian government See Exhibit 3, ranslation of ? “The definition of "monetary insrumens” excludes negodable iastouens (including baak cheeks) daa se wot in bearer form, endorsed witout restriction mado out loa fietiows paves, ox olherwtse such thatthe passes en delivery. 3 C.FR § 103.11(0) Gi). Te ACidavt song sugges that de eashio's check wvas rot in bearer fon and thcrwiss not susceptible wo beat passage of tile upon prescution. See aso Hardy Hazada 762 F. Supp 1405 (D. Hawai 1991) (roe definition exces "bank chock” fron defaion of" ansseto0 in currency’. see 31 CFR § 105.18(2008) » The only indication in the Fides to the ffec hat Me. Al-But knowingly violated the syoing cpus anno Re tS a ats Epa ete ea ha the had to declare the wavelers* chocks. (IEA Oidavit 5 49. although OFAC is not charged wih prosecuing vslatoas of Carrency and Monstary Instant Report oquiremens et for a 31 USC. sectiog $315, 1 bears Goplasis at his point tata violauen ofthat sate mat be predated upeo actual knowledge of the repering equiewew, United Ses v.Marrg.Alaez, 830 F 24 968, 974 9 Cir 1987). Aste cour stated ina prosscution prsuont to 31 LSC. § $3164, the poverment is required 9 prove thot the defers aw (1) they were tsnsporing fics in excsts of 10.000 ad 2) thatthe é Iow squited vem ile a epi. See Lined States» Carrier. F.2d 589, 61 (Sth Cir. 1981) (Goqurement tt ac; be wife” leans Wat its be Soue “Esbberotly and witb ow leds") 001387 Loon a R-orsie2