On September 16, 2005, a man who testified before the U.S. Senate shortly after 9/11 about the dangers of unlicensed money transmittal businesses was himself sentenced to jail for operating one of these illegal businesses. Rahim Bariek of Herndon, Virginia, was sentenced to 18 months in jail for operating an illegal money transmitting business (commonly known as "hawala") without a license, in violation of provisions of the USA Patriot Act. In November 2001, Bariek had testified before Congress about the need for hawala operators like himself to abide by federal laws governing such businesses. A subsequent ICE investigation revealed that Bariak was in fact operating an illegal hawala that received at least $4.9 million in funds to transfer to Iran and Pakistan. Bariek also transmitted funds to Afghanistan after the September 11th terrorist attacks when Afghanistan was still under the control of the Taliban, and a base for Al-Qaeda operations.
These are two examples of how the Patriot Act facilitated ICE investigations, said the Department of Homeland Security in promoting the Act as valuable in combatting terrorist activity.
The Patriot Act breaks down barriers to information sharing, said DHS, enabling law enforcement and intelligence personnel to share information that is needed to help connect the dots and disrupt potential terror and criminal activity before they can carry out their plots. The broad information sharing provisions better enables U.S. Customs and Border Protection to screen international visitors and determine whether an apprehended alien presents a threat to security or public safety.
The Patriot Act also enhances DHS investigations into the international movement of illicit funds through money transmittal businesses, bulk cash smuggling and cyber crimes. The United States Secret Service, for example, has established 15 nationwide electronic crimes taskforces and 10 working groups to detect and stop computer-based crime. As part of Operation Firewall, last year the Secret Service arrested 28 individuals in eight states and six countries involved in a global cyber crime network. These suspects stole nearly 1.7 million credit card numbers.
As a result of their Patriot Act authorities, said DHS, ICE agents launched an investigative strategy to target the underlying financial systems that terrorist and other criminal organizations may exploit in raising, moving and storing illicit funds. ICE seeks to deny criminal organizations access to these systems.
For example, new anti money-laundering provisions of the Patriot Act have allowed ICE to launch an unprecedented effort to combat the laundering of funds originating from foreign public corruption, bribery or embezzlement. In 2003, ICE created the Foreign Corruption Task Force in Miami specifically to target funds being laundered in the United States that had been embezzled from foreign governments.
The ICE-led task force, which is the only one of its kind in the nation, seeks to prosecute violators, seize embezzled funds, and repatriate the money to the victimized governments. In one particular investigation, the task force has identified and seized millions of dollars worth of assets and property in South Florida that were purchased with funds embezzled from the government of Nicaragua by former Nicaraguan President Arnoldo Aleman and former Nicaraguan tax commissioner, Byron Jerez.
Last year, ICE began returning some of this seized money to the government of Nicaragua. Using new provisions of the Patriot Act, ICE has launched a nationwide campaign against illegal/unlicensed money transmittal businesses that has resulted in the arrest of more than 155 individuals and 142 criminal indictments, over $25 million in illicit profits seized, and several unlicensed money transmittal businesses shut down.
