[Congressional Record: June 28, 2006 (Senate)]
[Page S6600-S6602]





                             WAR ON TERROR

  Mr. BOND. Mr. President, I thank my distinguished colleague from
Texas for outlining so many of the very important issues facing this
country and the Senate today.
  I will talk about something that is extremely important to families,
to people through the United States. That is the war on terror. How are
we going to take the steps to prevent another September 11 attack in
the United States?
  I don't think anyone who has followed the progress of the
Islamofascist terrorists who have threatened us believe we are going to
be safe if we try a fortress mentality, to step back and say no one is
going to hit us, they don't care about the United States. They do.
  We work in a very secure place. People who visit us have to go
through all kinds of security. Yes, we have built up some good
barriers, good protections. High target areas such as the Congress and
the White House are protected.
  For the vast majority of places in America, there is no way you can
build a security system such as we have here because of the high
priority this rates in terms of terrorist interests. After September
11, we started some very serious consideration of what we needed to do
to fight against terrorism.
  I will read a very good editorial that appeared September 24, 2001.

       The Bush administration is preparing new laws to help track
     terrorists through money-laundering activity and is readying
     an executive order freezing the assets of known terrorists.
     Much more is needed, including stricter regulations, the
     recruitment of specialized investigators and greater
     cooperation with foreign banking authorities.
       Washington should revive international efforts begun during
     the Clinton administration to pressure countries with
     dangerously loose banking regulations to adopt and enforce
     stricter rules. These need to be accompanied by stronger
     sanctions against doing business with financial institutions
     based in these nations.

  That is exactly what the Bush administration did. They set up the
Terrorist Financing Tracking Program, a very effective program. This
program went on clandestinely without any public notice or disclosure.
  As the chairman of the subcommittee that funds the Treasury
Department and as a Member of the Senate Intelligence Committee, I was
briefed on it. I was briefed on the effectiveness of it and how
valuable a tool it is to be able to follow the money because the
terrorists did not know we could follow when they transferred money
from al-Qaida or Hamas or Hezbollah to someone in the United States; or
transferred money from a so-called charity in the United States back to
a terrorist organization. They did not know how we were doing it. It
was effective.
  A number of the major terrorist captures we have made, the terrorist
operations designed for the United States that we have interrupted,
were enabled by the terrorist tracking program.
  When the 9/11 Commission made its final report of its recommendations
on December 5, 2005, they gave varying degrees of ratings, from the
very best being A, to F being a very bad job, to all of the different
activities we had undertaken to make our country safe, to make our
homeland safe. Regrettably, many of them only got Bs. The Director of
National Intelligence, the National Counterterrorism Center, they got
Bs. Some of them got even lower grades, working with other countries.

  But the one that led the rating was terrorist financing. We were
doing the best job fighting terrorist threats to the United States by
terrorist-financing tracking. We were, until last week. Because that
editorial I read from about the need for that, about the need for
international cooperation, was a New York Times editorial of September
24, 2001.
  Well, the New York Times has blown the cover--blown the cover--on
this very important terrorist-financing activity. Now the terrorists
know there is a Belgian-based cooperative called SWIFT, the Society for
Worldwide Interbank Financial Telecommunication. The SWIFT operation
has a facility in the United States to which the Treasury Department
issued narrowly targeted administrative subpoenas to get information on
specific terrorist organizations and where their money transfers went.
But now the terrorists know.
  SWIFT is regulated by central bankers. The oversight committee knew
about it. The oversight committee had in it the Federal Reserve, the
European Central Bank, the Bank of England, the Bank of Japan, the Bank
of Belgium. Their committee members overseeing SWIFT knew how this
program was operating, and they knew it was operating lawfully.
  But the New York Times, continuing its recent tradition, has decided
that its right to publish is more important than the American public's
right to be safe from terrorist activities. This is another chapter in
a very sad series of revelations of our most sensitive intelligence-
tracking activities.
  Newspapers knew in World War II we could crack the codes of the Axis,
that we were able to monitor the defense and military moves of Germany.
But they did not expose it. Why? Because they knew our national
interest required us to be able to keep confidential, to keep out of
the hands of our enemies, the techniques by which we gathered the
intelligence, which helped us win World War II--and which had, until
recent disclosures, helped us be able to win the war against terrorist
attacks in the United States.
  Well, the New York Times has decided that its right to publish takes
precedence over America's right to have intelligence collection methods
that are not disclosed to the people of the United States and, thus, to
the terrorists we attempt to track.
  Sadly, as I have traveled around the world, meeting with our
intelligence agencies, our military people--all across the globe--I
found out, since the disclosures--beginning with the disclosure of the
renditions of terrorists to other countries, the activities of the
President's terrorist surveillance program--our intelligence
capabilities have been compromised. Intelligence operatives tell us
collections are way down. We don't know how we can replace these tools
that have been disclosed by the New York Times and others.
  In February, at the open hearing in the Intelligence Committee, I
asked CIA Director Porter Goss: What has the damage been? What has the
damage been to our intelligence system from this disclosure? He said:
It's been very severe. Let me repeat, very severe.
  Then again, when Michael Hayden was in a public hearing on his
confirmation to be Director of the CIA, I asked him again--and this was
before the disclosure of the Terrorist Finance Tracking Program--I
said: What has been the impact of these disclosures on our intelligence
system? He said: These disclosures have now applied the Darwinian
theory to terrorists because the only terrorists we are capturing are
the dumb terrorists. The smart terrorists know what we are doing, and
they know how to avoid it. Therefore, they can plan their attacks, and
we are severely crippled.

[[Page S6601]]

  Well, disclosure of this Terrorist Finance Tracking Program is a very
severe blow. This one particular program has had, in my view, as many
successes as any of the other programs, and it has been a vital part of
building the intelligence network that we need, gathering the
information we need to identify and take out those people who are
planning to launch deadly terrorist attacks in the United States.
  I regret to tell my colleagues, my constituents in Missouri, and the
people in America that we are much less safe.
  This program, the SWIFT Program, did not need to be exposed. The
Secretary of the Treasury has written to the New York Times a rebuttal
to the disclosure they made. They said: Oh, there is a great need for
the people to know this. Well, unfortunately, when the people of
America know it, the terrorists know it.
  Secretary John Snow, with whom I have worked on this program, laid it
out very well. He said in a statement on June 22 of this year: After
President Bush made it clear that ensuring the safety of our people
from terrorist attacks was our No. 1 priority, one of the most
important things the Treasury could do is to follow the flow of
terrorist money. They don't lie. Skillfully followed, they lead us to
terrorists themselves and, thereby, protect our citizens.
  He said:

       Given our intimate knowledge of the global financial system
     and financial flows, along with our close working
     relationships with financial institutions around the world,
     Treasury is uniquely positioned to track these terrorist
     money flows both internationally and domestically.

  He said:

       I am particularly proud of our Terrorist Finance Tracking
     Program which, based on intelligence leads, carefully targets
     financial transactions of suspected foreign terrorists. . . .
     It is an essential tool in the war on terror. . . . It is not
     ``data mining''. . . . It is not a ``fishing expedition''. .
     . . today's disclosure [is] so regrettable, because the
     public dissemination of our sources and methods of fighting
     terrorists not only harms national security but also degrades
     the government's efforts to prevent terrorist activity in the
     future.

  If there are people sending money to help al Qaeda, then we need to
know about it. We also need to take advantage of that knowledge to
follow the money trail and thwart them.
  He reports that the 9/11 Commission gave its highest level of
recognition to this work.
  Well, Mr. President, when we disclose how our allies are working with
us, we not only give the terrorists information on how to avoid
disclosure, how to keep their activities secret, what we do, and what
is very serious, is we tell our allies that we cannot keep a secret.
Our allies are getting more and more reluctant to deal with us on any
international cooperative missions when everything we do is blown and
all of a sudden they read in their papers in the United States how they
have cooperated with the United States.
  Now, that is not a very popular thing for some of these governments
to do, and it makes it far more difficult for us to say: Hey, let's
work together on a clandestine intelligence-gathering program that will
keep your country safe and our country safe. Bam, they read about it in
the newspapers. Well, this makes not only terrorists more able to get
around our existing intelligence-collection assets, but it makes our
allies far more reluctant to cooperate with us.
  Mr. President, I regret to tell you and my colleagues how serious
this has been.
  I ask unanimous consent to have printed in the Record a copy of the
letter to the editors of the New York Times by the Secretary of the
Treasury, John Snow; a copy of the September 24, 2001, editorial from
the New York Times; and a copy of the Final Report on 9/11 Commission
Recommendations, in which they said this terrorist financing program
was the best.
  There being no objection, the material was ordered to be printed in
the Record, as follows:

                                         U.S. Treasury Department,


                                     Office of Public Affairs,

                                    Washington, DC, June 26, 2006.
     Mr. Bill Keller,
     Managing Editor, The New York Times,
     West 43rd Street, New York, NY.
       Dear Mr. Keller: The New York Times' decision to disclose
     the Terrorist Finance Tracking Program, a robust and
     classified effort to map terrorist networks through the use
     of financial data, was irresponsible and harmful to the
     security of Americans and freedom-loving people worldwide. In
     choosing to expose this program, despite repeated pleas from
     high-level officials on both sides of the aisle, including
     myself, the Times undermined a highly successful counter-
     terrorism program and alerted terrorists to the methods and
     sources used to track their money trails.
       Your charge that our efforts to convince The New York Times
     not to publish were ``halfhearted'' is incorrect and
     offensive. Nothing could be further from the truth. Over the
     past two months, Treasury has engaged in a vigorous dialogue
     with the Times--from the reporters writing the story to the
     D.C. Bureau Chief and all the way up to you. It should also
     be noted that the co-chairmen of the bipartisan 9-11
     Commission, Governor Tom Kean and Congressman Lee Hamilton,
     met in person or placed calls to the very highest levels of
     the Times urging the paper not to publish the story. Members
     of Congress, senior U.S. Government officials and well-
     respected legal authorities from both sides of the aisle also
     asked the paper not to publish or supported the legality and
     validity of the program.
       Indeed, I invited you to my office for the explicit purpose
     of talking you out of publishing this story. And there was
     nothing ``half-hearted'' about that effort. I told you about
     the true value of the program in defeating terrorism and
     sought to impress upon you the harm that would occur from its
     disclosure. I stressed that the program is grounded on solid
     legal footing, had many built-in safeguards, and has been
     extremely valuable in the war against terror. Additionally,
     Treasury Under Secretary Stuart Levey met with the reporters
     and your senior editors to answer countless questions, laying
     out the legal framework and diligently outlining the multiple
     safeguards and protections that are in place.
       You have defended your decision to compromise this program
     by asserting that ``terror financiers know'' our methods for
     tracking their funds and have already moved to other methods
     to send money. The fact that your editors believe themselves
     to be qualified to assess how terrorists are moving money
     betrays a breathtaking arrogance and a deep misunderstanding
     of this program and how it works. While terrorists are
     relying more heavily than before on cumbersome methods to
     move money, such as cash couriers, we have continued to see
     them using the formal financial system, which has made this
     particular program incredibly valuable.
       Lastly, justifying this disclosure by citing the ``public
     interest'' in knowing information about this program means
     the paper has given itself free license to expose any covert
     activity that it happens to learn of--even those that are
     legally grounded, responsibly administered, independently
     overseen, and highly effective. Indeed, you have done so
     here.
       What you've seemed to overlook is that it is also a matter
     of public interest that we use all means available--lawfully
     and responsibly--to help protect the American people from the
     deadly threats of terrorists. I am deeply disappointed in the
     New York Times.
           Sincerely,
                                                     John W. Snow,
     Secretary, U.S. Department of the Treasury.
                                  ____


               [From the New York Times, Sept. 24, 2001]

                           Finances of Terror

       Organizing the hijacking of the planes that crashed into
     the World Trade Center and the Pentagon took significant sums
     of money. The cost of these plots suggests that putting Osama
     bin Laden and other international terrorists out of business
     will require more than diplomatic coalitions and military
     action. Washington and its allies must also disable the
     financial networks used by terrorists.
       The Bush administration is preparing new laws to help track
     terrorists through their money-laundering activity and is
     readying an executive order freezing the assets of known
     terrorists. Much more is needed, including stricter
     regulations, the recruitment of specialized investigators and
     greater cooperation with foreign banking authorities. There
     also must be closer coordination among America's law
     enforcement, national security and financial regulatory
     agencies.
       Osama bin Laden originally rose to prominence because his
     inherited fortune allowed him to bankroll Arab volunteers
     fighting Soviet forces in Afghanistan. Since then, he has
     acquired funds from a panoply of Islamic charities and
     illegal and legal businesses, including export-import and
     commodity trading firms, and is estimated to have as much as
     $300 million at his disposal.
       Some of these businesses move funds through major
     commercial banks that lack the procedures to monitor such
     transactions properly. Locally, terrorists can utilize tiny
     unregulated storefront financial centers, including what are
     known as hawala banks, which people in South Asian immigrant
     communities in the United States and other Western countries
     use to transfer money abroad. Though some smaller financial
     transactions are likely to slip through undetected even after
     new rules are in place, much of the financing needed for
     major attacks could dry up.
       Washington should revive international efforts begun during
     the Clinton administration to pressure countries with
     dangerously

[[Page S6602]]

     loose banking regulations to adopt and enforce stricter
     rules. These need to be accompanied by strong sanctions
     against doing business with financial institutions based in
     these nations. The Bush administration initially opposed such
     measures. But after the events of Sept. 11, it appears ready
     to embrace them.
       The Treasury Department also needs new domestic legal
     weapons to crack down on money laundering by terrorists. The
     new laws should mandate the identification of all account
     owners, prohibit transactions with ``shell banks'' that have
     no physical premises and require closer monitoring of
     accounts coming from countries with lax banking laws.
     Prosecutors, meanwhile, should be able to freeze more easily
     the assets of suspected terrorists. The Senate Banking
     Committee plans to hold hearings this week on a bill
     providing for such measures. It should be approved and signed
     into law by President Bush.
       New regulations requiring money service businesses like the
     hawala banks to register and imposing criminal penalties on
     those that do not are scheduled to come into force late next
     year. The effective date should be moved up to this fall, and
     rules should be strictly enforced the moment they take
     effect. If America is going to wage a new kind of war against
     terrorism, it must act on all fronts, including the financial
     one.
                                  ____


             FINAL REPORT ON 9/11 COMMISSION RECOMMENDATIONS
                           [December 5, 2005]
------------------------------------------------------------------------

------------------------------------------------------------------------
                Homeland Security and Emergency Response
------------------------------------------------------------------------
Radio spectrum for first responders............................     F/C*
Incident Command System........................................        C
Risk-based homeland security funds.............................     F/A*
Critical infrastructure assessment.............................        D
Private sector preparedness....................................        C
National Strategy for Transportation Security..................       C-
Airline passenger pre-screening................................        F
Airline passenger explosive screening..........................        C
Checked bag and cargo screening................................        D
Terrorist travel strategy......................................        I
Comprehensive screening system.................................        C
Biometric entry-exit screening system..........................        B
International collaboration on borders and document security...        D
Standardize secure identifications.............................       B-
------------------------------------------------------------------------
                  Intelligence and Congressional Reform
------------------------------------------------------------------------
Director of National Intelligence..............................        B
National Counterterrorism Center...............................        B
FBI national security workforce................................        C
New missions for CIA Director..................................        I
Incentives for information sharing.............................        D
Government-wide information sharing............................        D
Northern Command planning for homeland defense.................       B-
Full debate on PATRIOT Act.....................................        B
Privacy and Civil Liberties Oversight Board....................        D
Guidelines for government sharing of personal information......        D
Intelligence oversight reform..................................        D
Homeland Security Committees...................................        B
Unclassified top-line intelligence budget......................        F
Security clearance reform......................................        B
------------------------------------------------------------------------
                   Foreign Policy and Nonproliferation
------------------------------------------------------------------------
Maximum effort to prevent terrorists from acquiring WMD........        D
Afghanistan....................................................        B
Pakistan.......................................................       C+
Saudi Arabia...................................................        D
Terrorist sanctuaries..........................................        B
Coalition strategy against Islamist terrorism..................        C
Coalition detention standards..................................        F
Economic policies..............................................       B+
Terrorist financing............................................       A-
Clear U.S. message abroad......................................        C
International broadcasting.....................................        B
Scholarship, exchange, and library programs....................        D
Secular education in Muslim countries..........................       D
------------------------------------------------------------------------
* If pending legislation passes.

  Mr. BOND. I would say also, it is fully compliant with the
regulations, with the Constitution, and with statutes. If anybody wants
to know, I will be happy to talk with them. There was no genuine public
right to know that was satisfied by blowing this program. It was legal,
and it was effective. No longer will it be effective, and no longer can
we be as safe as we were before these disclosures started.
  I yield the floor.
  The PRESIDING OFFICER (Mr. Graham). The Senator from New Hampshire.

                          ____________________