Freezes Terrorists' Assets
Secretary of the Treasury Paul O'Neill
Secretary of State Colin Powell
White House Rose Garden
September 24, 2001
9:35 A.M. EDT
THE PRESIDENT: Good morning. At 12:01 a.m. this morning, a major thrust of our
war on terrorism began with the stroke of a pen. Today, we have launched a strike
on the financial foundation of the global terror network.
Make no mistake about it, I've asked our military to be ready for a reason.
But the American people must understand this war on terrorism will be fought
on a variety of fronts, in different ways. The front lines will look different
from the wars of the past.
So I told the American people we will direct every resource at our command to
win the war against terrorists: every means of diplomacy, every tool of intelligence,
every instrument of law enforcement, every financial influence. We will starve
the terrorists of funding, turn them against each other, rout them out of their
safe hiding places and bring them to justice.
I've signed an executive order that immediately freezes United States financial
assets of and prohibits United States transactions with 27 different entities.
They include terrorist organizations, individual terrorist leaders, a corporation
that serves as a front for terrorism, and several nonprofit organizations.
Just to show you how insidious these terrorists are, they oftentimes use nice-sounding,
non-governmental organizations as fronts for their activities. We have targeted
three such NGOs. We intend to deal with them, just like we intend to deal with
others who aid and abet terrorist organizations. This executive order means
that United States banks that have assets of these groups or individuals must
freeze their accounts. And United States citizens or businesses are prohibited
from doing business with them.
We know that many of these individuals and groups operate primarily overseas,
and they don't have much money in the United States. So we've developed a strategy
to deal with that. We're putting banks and financial institutions around the
world on notice, we will work with their governments, ask them to freeze or
block terrorist's ability to access funds in foreign accounts. If they fail
to help us by sharing information or freezing accounts, the Department of the
Treasury now has the authority to freeze their bank's assets and transactions
in the United States.
We have developed the international financial equivalent of law enforcement's
"Most Wanted" list. And it puts the financial world on notice. If
you do business with terrorists, if you support or sponsor them, you will not
do business with the United States of America.
I want to assure the world that we will exercise this power responsibly. But
make no mistake about it, we intend to, and we will, disrupt terrorist networks.
I want to assure the American people that in taking this action and publishing
this list, we're acting based on clear evidence, much of which is classified,
so it will not be disclosed. It's important as this war progresses that the
American people understand we make decisions based upon classified information,
and we will not jeopardize the sources; we will not make the war more difficult
to win by publicly disclosing classified information.
And, by the way, this list is just a beginning. We will continue to add more
names to the list. We will freeze the assets of others as we find that they
aid and abet terrorist organizations around the world. We've established a foreign
terrorist asset tracking center at the Department of the Treasury to identify
and investigate the financial infrastructure of the international terrorist
It will bring together representatives of the intelligence, law enforcement
and financial regulatory agencies to accomplish two goals: to follow the money
as a trail to the terrorists, to follow their money so we can find out where
they are; and to freeze the money to disrupt their actions.
We're also working with the friends and allies throughout the world to share
information. We're working closely with the United Nations, the EU and through
the G-7/G-8 structure to limit the ability of terrorist organizations to take
advantage of the international financial systems.
The United States has signed, but not yet ratified, two international conventions,
one of which is designed to set international standards for freezing financial
assets. I'll be asking members of the U.S. Senate to approve the U.N. Convention
on Suppression of Terrorist Financing and a related convention on terrorist
bombings; and to work with me on implementing the legislation.
We will lead by example. We will work with the world against terrorism. Money
is the lifeblood of terrorist operations. Today, we're asking the world to stop
Now, the Secretary of Treasury would like to say a few remarks, followed by
Secretary Powell, then I'll answer a few questions.
SECRETARY O'NEILL: Thank you, Mr. President. This order provides the authority
to block funds of terrorists and anyone associated with a terrorist or terrorism.
The order names specific individuals and charitable organizations that are funding
terrorist acts. Donors now will know to avoid these charities that front for
With the signing of this executive order, we have the President's explicit directive
to block the U.S. assets of any domestic or foreign financial institution that
refuses to cooperate with us in blocking assets of terrorist organizations.
This order is a notice to financial institutions around the world, if you have
any involvement in the financing of the al Qaeda organization, you have two
choices: cooperate in this fight, or we will freeze your U.S. assets; we will
punish you for providing the resources that make these evil acts possible.
Many of our allies around the world have already stepped forward to cooperate
in destroying terrorism's financial infrastructure. I will be in contact with
my G-7 colleagues again tomorrow to further coordinate our joint effort to shut
down the financial underpinnings of terrorism.
Today's executive order gives us a new weapon to deny terrorists access to funds.
The foreign terrorist asset tracking center that we announced last week is up
and running, coordinating information from among government agencies with the
express purpose of identifying and stamping out the financial network that funds
terrorism. And we're working with the G-7 nations, and many others, to attack
all parts of a global infrastructure that finances these acts of evil.
Together, we will succeed in starving the terrorists of funding and shutting
down the institutions that support or facilitate terrorism.
SECRETARY POWELL: Thank you, Mr. President and Secretary O'Neill. As the President
said, the campaign has begun. We're going after al Qaeda. We're going after
terrorism. And this is an indication of how we're going to use all the elements
of our national and international power to do it. Terrorists require a financial
infrastructure. They require safe-havens. They require places that will get
them succor and comfort. We're going after all of them in every way that we
And we're focusing this morning on the financial infrastructure of terrorism.
We're going to take this initiative into the United Nations and try to get additional
resolutions that will serve similar purposes. We're working with the European
Union. We're working with the G-7 and G-8, as Secretary O'Neill and the President
have mentioned. We're going to be working with Congress, as the President has
mentioned, to get these two U.N. conventions ratified, and the implementing
legislation in place.
I'm very, very pleased at the level of cooperation that we are receiving from
around the world. All civilized nations in the world understand that the civilized
world has to go after terrorism. The World Trade Center, America suffered a
grievous blow. But the whole world did -- some almost 80 nations suffered losses
at the World Trade Center. And that's why the whole world is joining with us.
Nations such as the United Arab Emirates, which declared the Taliban no longer
welcome and broke diplomatic relations. All of these are part of the campaign.
It's a campaign that will be fought with persistence and with perseverance,
and will be fought until, as the President has said, we have prevailed and we
have won. Thank you.
THE PRESIDENT: Bill.
QUESTION: Mr. President, when will you publish the paper which Secretary Powell mentioned
yesterday, outlining some of the proof that you have of the involvement of bin
Laden and al Qaeda and others?
THE PRESIDENT: The Secretary said that he'd be glad to talk about the paper.
Let me first tell you that I gave a speech to the nation last Thursday in which
I spent a great deal of time talking about the al Qaeda organization as the
first terrorist organization that we're going to deal with. And the reason I
did is there is a lot of classified information that leads to one person, as
well as one global terrorist organization.
But for those of you looking for a legal peg, we've already indicted Osama bin
Laden. He's under indictment for terrorist activity. Our war is against terrorism.
Those who would conduct terrorist acts against the United States, those who
sponsor them, those who harbor them, those who challenge freedom wherever it
And, Mr. Secretary, if you'd like to make a comment on that.
SECRETARY POWELL: I just might point out that he has been under indictment for
the bombings of our embassy. And as we gather information, and as we talk to
our friends and allies around the world, and as we get more cooperation, more
information is coming in with respect to his activities and the activities of
this network. Most of it is classified, and as we look through it, we can find
areas that are unclassified and it will allow us to share this information with
the public, we will do so. That would be our intent. But most of it is classified.
But there's no question that this network, with this gentleman at the head --
if one can call a terrorist a gentleman, just for purposes of illustration --
this guy at the head of this network -- the chairman of this holding company
of terrorism, is the one who is responsible.
And as we are able to provide information that is not sensitive or classified,
I think we will try to do that in every way.
THE PRESIDENT: Yes, Helen.
QUESTION: Mr. President, how much cooperation are you getting from Russia? And is Saudi
Arabia going to allow us to use its air base, or aren't you allowed to talk
THE PRESIDENT: Well, first, I had an hour-long discussion -- nearly an hour-long
discussion with President Putin on Saturday. He was very forthcoming in his
willingness to work closely with the United States in our efforts to battle
terrorism. I was very pleased with my discussion, Helen. I found him to be a
person who -- first of all, understands the vision that we've entered into a
new conflict in the 21st century.
You need to know that when I was on Air Force One and ordered alerts -- increased
alert status for our troops, President Putin was the first call I got. And he
made it clear that he would stand down their troops. In other words, to me it
was a moment where it clearly said to me, he understands the Cold War is over.
In the past, as you well know, that had the President put the -- raised the
DEF CON levels of our troops, Russia would have responded accordingly. There
would have been inevitable tension.
Along those -- the reason I bring that up is that Vladimir Putin clearly understands
that the Cold War is over, and that the United States and Russia can cooperate.
We can cooperate with a new strategic arrangement. We can cooperate in the battle
against terrorism. We talked about a lot of areas of the world. We talked about
the Central Asian republics. And as you know, they have been forthcoming in
their statements about their understanding of a potential campaign. And I told
him I appreciated his willingness to work with us in that area.
And so it was a very constructive dialogue. He also understands that terrorist
activity is going to require a -- to fight terrorist activity is going to require
a broad front, and that his nation, like ours, is subject to terrorist attack.
As far as the Saudi Arabians go -- and, again, the Secretary can comment on
this, he's had more recent contact with them than I have -- but they've been
nothing but cooperative. Our dialogue has been one of -- as you would expect
friends to be able to discuss issues. And my discussion with the Foreign Minister,
as well as the Ambassador, have been very positive. And there's been no indication,
as far as I'm concerned, that the Saudis won't cooperate once they understand
exactly our mission.
SECRETARY POWELL: That's exactly right, Mr. President. They have not turned
down any requests that we have presented to them.
QUESTION: Mr. President, are you asking Congress for the power to waive military restrictions
on countries -- on all countries that help us, including those we've considered
as rogue nations? And, if so, why?
THE PRESIDENT: No, you're -- I think you're referring to -- first of all, we've
waived the sanctions on Pakistan and India, as related to the Glenn Act. But
I think you're referring to a report that we were going to ask for a blanket
-- blanket exceptions, or blanket waivers for -- and the answer is no, we're
not. That's an erroneous report.
QUESTION: -- just case-by-case now, is that idea, like --
THE PRESIDENT: Well, where given the -- where the law allows, I will do it case-by-case.
But we don't intend to ask Congress for a blanket waiver, as reported in one
of the journals.
QUESTION: Mr. President, last week you condemned the Taliban regime, and said that if
they did not comply with your demands, they would share the fate of the terrorists.
That raises the question, what is your administration and other coalition members
planning to do to maintain stability and order in Central Asia? Are we supporting
this exiled King, the northern insurgence, some U.N. administration? What are
our goals there, if the Taliban are to be removed?
THE PRESIDENT: Terry, I -- first of all, we were mindful that every action could
have a consequence. And as you know, we have spent a lot of time and effort
and focus on Pakistan. I just talked about the waiving of sanctions with Pakistan
and India. We believe that will bring stability to that part of the world. We
have talked to other friends about how to make sure that the Musharraf presidency
is a stable presence in that part of the world.
In terms of activities within Afghanistan, I'm not going to talk about those.
I will not jeopardize our mission in any way by talking about military or in-country
plans. We have a responsibility as an administration to speak as candidly as
we can to the American people, but without jeopardizing life. And so, therefore,
we will be willing to discuss that very important question at an appropriate
time, and now is not the appropriate time.
QUESTION: Mr. President, to put some perspective into all of this, how much -- can you
tell us a rough estimate of how much the al Qaeda network is worth domestically,
and perhaps and/or worldwide?
THE PRESIDENT: Well, I think in my statement I made it clear that we don't anticipate
many assets to be frozen here in the United States, and that most of the assets
will be overseas. And one of the jobs that the Secretary of Treasury is going
to do is to help us identify the size of the organization's balance sheet.
I can't give you a rough estimate right now.
QUESTION: -- hundreds of millions?
THE PRESIDENT: But let's put it this way -- enough to fund terrorist activity
that threatens freedom. And there are -- take, for example, the non-governmental
organizations. They run a fair amount of money through their organizations,
and we're beginning, as you can tell from the list we've laid out, or will be
able to tell from the list, that we're beginning to set priorities of those
most egregious and their serving as fronts for terrorist activities. I don't
know the full amount of their cash flows, but one dime of money into a terrorist
activity is one dime too much.
And we know that these organizations cannot function if we're able to -- the
way they want to -- if we're able to chop off their monies. And we intend to
do so. And we've got a big task ahead. In Europe, for example, there are probably
going to need to be some laws changed in order for those governments to react
the way we expect them to. That's why I said in my comment, while we now --
while the Secretary of Treasury now has the option of providing some draconian
measure, we will look at it in on a case-by-case basis. We expect there to be
a complete and full effort to join us in affecting terrorist organizations in
all ways, shapes and forms.
The reason why we held this statement in the Rose Garden is it helps the American
people understand we are waging a different kind of war. It is a war that is
going to take a while. It is a war that will have many fronts. It is a war that
will require the United States to use our influence in a variety of areas in
order to win it. And one area is financial.
We know there are some banks, for example, that provide easy access money for
terrorist organizations. We will deal with them. And if we can't deal with them
individually, we will call upon our friends to deal with them.
One of the interesting things that the Secretary can tell you -- both Secretaries
will tell you -- is a lot of nations and their representatives have asked, how
can we help; what can we do to join the effort. Some nations will feel comfortable
providing troops. Some nations will feel comfortable providing intelligence.
Some nations will only feel comfortable helping us wage the battle on the financial
front. And that's fine by us, because we understand how important it is to stop
the flow of funds.
QUESTION: Mr. President, one question on the economy. How concerned are you about consumer
confidence right now? People are afraid to fly, they're not traveling. And are
you, at this point, concerned that the economy has already dipped into a recession?
THE PRESIDENT: Well, I'm -- I haven't seen -- I'm not a statistician, but I've
got enough anecdotal evidence to tell you there are people hurting, and there
are a little too many layoffs. And any time somebody loses a job in America,
And I'm concerned about the shock this has had on our economy, and I'm concerned
about, obviously, the effect of the airlines, for example, the weakness in the
airline sector has had on the economy. That's why I signed the bill as soon
as Congress passed it, to provide some non-recourse loans to the airlines, to
keep them up and running right now.
But I want to assure the American people that the fundamentals for growth are
very strong. That which made us unique in the world existed prior to September
-- that existed prior to September 11th exists today. We're still a nation of
entrepreneurs and small business vitality. We're still a nation of innovation.
We've got a very good tax structure.
There is no question the attacks have affected America, but I think when the
investors sit back and take a hard look at the fundamentals of the economy,
they'll get back in the market. I think that consumers will realize life is
going on. I think people appreciate the fact that our government has come together
to act in a very significant way, to provide monies where necessary, for --
whether it be to help rebuild New York or whether it be to provide a financial
basis for airlines to stay in business. We'll come out of this, and we'll come
out of it strong.
See, these terrorists thought they could affect the United States. They thought
they could diminish our soul. They just strengthened our country. And while
the numbers aren't going to look too good in the short-run, we'll be a stronger
nation as a result of this. And they've miscalculated. They made a terrible
mistake. They thought somehow they could affect the psyche of our country. They're
And not only that, we'll prove them wrong. They have roused the ire of a great
nation. And we're going to smoke them out of their caves, and get them running.
And we're going to use every means at our disposal to do so. And this is going
to require patience and focus and discipline on behalf of the -- by the American
people and by my administration.
No, I understand six months from now we'll be sitting around talking about some
statistic, or something -- maybe there will be an argument in Congress about
some issue or something like that. But the American people have got to understand
that when I held up that badge, I meant it: this war on terrorism is my primary
focus. Of course I'm concerned about people being laid off. Of course I'm concerned
about the pieces of legislation that may be stalled.
But we are talking about a campaign against people who hate freedom. And the
legacy that this administration and this generation can leave for future generations
is a legacy that is so vital for the underpinnings of this nation and others
who love freedom.
And so I -- we're a great nation, and the world has seen how great we are. And
you bet there are problems with our economy short-run, but not long-run. And
you bet there's a concern about whether or not we'll be able to wrap up every
financial instrument used to fund terrorism.
But make no mistake about it, we're going after them all. And we'll win, we're
going to win. Terrorists are going to realize they can't face down freedom.
Terrorists are going to realize they made a big mistake, they miscalculated
America. And I think they miscalculate a lot of our allies and friends, too.
There is a determined will, and we accept the challenge in this administration.