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No. 1479 September 25, 2001

STOPPING TERRORISM: FOLLOW THE MONEY

GERALD P. OVRISCOLL, JR., BRETT D. SCHAEFER, AND JOHN C HULSMANI
President George W. Bush, in his September 20 More than a military leader, Osama bin Laden is
speech on terrorism before a joint session of Con- a modern financier dedicated to supporting terror-
gress, vowed that ist acts through a complex financial network. A
multimillionaire, he utilizes not only his own
We will direct every resource at our resources, but also money that flows in from sup-
command—every means of diplomacy, porters around the world, rich and poor. As a sort
every tool of intelligence, every of diabolical grant maker, he distributes funds to
instrument of law enforcement, every groups that are planning to harm Western and par-
financial influence and every necessary ticularly American interests. Each terrorist act
weapon of war—to the disruption and brings in fresh funds.
defeat of the global terror network.... Terrorism is a business the fruits of which are
[E]ither you are with us, or you are with nurtured by these
Produced by the
the terrorists. financial flows. Cut off Center for International
these flows, and the Trade and Economics (CITE)
The President made clear that America's arsenal terrorists activities will
of weapons against terrorism would include shut- be stunted no matter Published by
ting down their avenues of financing and seizing how fanatical the The Heritage Foundation
their assets. He understands that financial support devotion of their fol- 214 Massachusetts Ave., N.E.
Washington, D.C.
is necessary for terrorists to project their activities lowers. To defeat ter- 20002-4999
from their base ot operations to the United States rorism at its base, the (202) 546-4400
United States must: http://www.heritage.org
and other developed nations. Identifying and cut-
ting off terrorist groups—such as Osama bin • Determine what
Laden's al-Qaeda—from their existing bank countries and
accounts and other sources of financing must be a institutions are
necessary component of a successful war against safeguarding bin
This paper, in its entirety, can be
terrorism. Laden's fortune found at: www.heritage.org/library/
backgrounder/bg 1479.html
The authors would like to thank James Phillips, Research Fellow in the Kathryn and Shelby Cullom Davis Institute for
International Studies; Daniel J. Mitchell, McKenna Senior Fellow in Political Economy in the Thomas A. Roe Institute for
Economic Policy Studies; David John, Senior Policy Analyst for Social Security; and Todd F. Gaziano, Senior Fellow in
Legal Studies, at The Heritage Foundation for their comments and contributions to this paper.
President George W Bush, "Address to a Joint Session of Congress and the American People," September 20, 2001
(emphasis added). See http://www.wfiitehouse.gov/news/releases/2001/09/20010920-8.html.