The Kerry Record: The BCCI Case
There is no more important issue facing America in this election year than the subject of the financing of terrorist organizations. And there is no one in America with a more impressive track-record on this issue than John Kerry.
Over a five-year period lasting from 1987 until 1992, John Kerry almost single-handedly led an arduous investigation that directly resulted in the demise of the notorious Bank of Commerce and Credit International (BCCI), dubbed by one CIA official as the "Bank of Crooks and Criminals International." Kerry carried on the investigation of BCCI in spite of the opposition of powerful political forces, including significant figures in the political leadership of his own party. At the end of the day, Kerry succeeded in laying bare a chronicle of money laundering, fraud, bribery, and support for international terrorism without historical parallel. Indeed, Kerry's investigation uncovered the fact that a then little-known Saudi businessman named Osama Bin Laden -- he whose name could not be uttered at the Republican convention -- maintained a series of accounts at BCCI for the purpose of directing money to Islamic terrorists. An excellent account of Kerry's extraordinary work in the BCCI case is set forth in an article entitled "Follow The Money" appearing in the current issue of The Washington Monthly. It should be required reading for anyone who has the slightest doubt about the strength of John Kerry's Senatorial record, his tenacity and integrity, and the indisputable fact that he is the superior candidate in this election.
First of all, consider why terrorist funding is such a crucial subject. It is, in essence, what 9/11 was all about. Even though Bush has used 9/11 as an excuse to promote all sorts of expensive weapons systems such as Reagan's old "Star Wars" boondoggle, the reality is that weaponry had almost nothing to do with 9/11. The only weapons that were wielded that day were box cutters. What made 9/11 a reality was the fact that well-to-do Islamic fundamentalists, primarily located in Saudi Arabia and other Gulf oil states, were able to take advantage of an international financial network that enabled them to funnel money to their operatives in the United States so that those operatives could take flying lessons and ultimately coordinate their actions on that horrible day. It is no exaggeration to say that if you cut off the flow of money, you go a long way to stopping terrorism.
That is why Kerry's record in the BCCI case is so relevant to this election. First, some background on BCCI. The bank was founded by Agha Hasan Abedi, a Pakistani Islamic fundamentalist who had the avowed objective of "fighting the evil influence of the West." Abedi located BCCI's headquarters in Luxembourg, in part to conceal its connection to Islamic organizations and in part to take advantage of the generous bank secrecy laws that the Grand Duchy has to offer. In short order, BCCI became the bank of choice not only for Muslim terror networks, but also for drug dealers and other major international criminals.
In 1987, after taking a leading role in uncovering the Iran-Contra scandal (the subject of a future blog), Senator Kerry was appointed Chair of the Subcommittee on Terrorism, Narcotics, and International Operations. In the process of following-up on information about cocaine trafficking by Contra leaders, Kerry's staff became aware of the fact that Panamanian dictator Manuel Noriega appeared to be running large amounts of drug money through a then little-known bank called BCCI. Kerry obtained authorization from the Senate Foreign Relations Committee to begin an investigation and issue subpoenas. The Reagan Justice Department however, which the CIA had alerted to BCCI's illegal activities as early as 1985, promptly put a stop to the investigation, claiming that Kerry's subpoenas were interfering with ongoing criminal cases. Kerry continued to press the investigation but in early 1989, was rebuffed by the Senate Foreign Relations Committee and told to end the inquiry.
It is here that Kerry's doggedness becomes striking. Instead of moving on to the sort of meaningless pap that occupies the days most politicians in Washington, Kerry continued to press to have the truth about BCCI uncovered. Kerry and his staff investigators provided the information they had uncovered about BCCI to the Manhattan District Attorney's Office, which now began its own investigation of BCCI in conjunction with the Federal Reserve Board.
In 1990, the Justice Department announced a settlement with BCCI, one which would impose insignificant fines, would not include any charges against BCCI's officials, and would permit the bank to continue in operation. Kerry went public with his criticism of this outrage and demanded a new Senatorial investigation, which was finally authorized in early 1991. It soon became apparent why so many roadblocks had been placed in the way of Kerry's investigation. Kerry uncovered evidence that numerous prominent political figures -- both Democrats and Republicans -- had long-standing working relationships with BCCI. One of the most prominent of BCCI's backers was legendary Democratic power broker Clark Clifford. Kerry was confronted with enormous pressure from within his own party to back off; Democratic luminaries such as Jacqueline Onassis and Pamela Harriman called Kerry's office and asked him not to go after their friend Clifford.
Kerry carried on his investigation in face of overwhelming pressure to stop it. Kerry forced Clifford to give public testimony to account for his actions. According to the Christian Science Monitor, Kerry could not have undertaken "any more potentially career disruptive move than grilling Clark Clifford."
The results of Kerry's investigation were striking. The Report of the investigation (which was issued in 1992 and can be obtained online at www.fas.org/irp/congress) runs thousands of pages and contains an extraordinarily valuable account of how terrorists and other international criminals use banking channels to carry on their activities. According to numerous Congressional staffers, Kerry himself participated personally not only in directing the investigation, but in writing the Report.
Reading the Report in light of the events of 9/11 is humbling. As noted, Osama Bin Laden utilized the services of BCCI. Post- 9/11 investigations concluded that Bin Laden's financial network was modeled on BCCI and included many of the same players in the Islamic world that had been involved with BCCI. Kerry's recommendations in the Report included proposals for new regulations to combat money laundering, and, most importantly, recommendations that the CIA and the State Department monitor international money laundering more closely and coordinate the dissemination of financial intelligence with law enforcement agencies. Unfortunately, in 1994, two years after Kerry's Report was issued, Newt Gingrich & Co. gained control of Congress and the idea of imposing new financial regulations was viewed as the height of bad taste.
Based on evidence uncovered by Kerry and the Manhattan District Attorney's Office, BCCI was finally shut down by Federal banking regulators in July 1991. No one should doubt that it was John Kerry who was responsible for making that happen. The most revealing testament to Kerry's work came from Senator Hank Brown, the ranking Republican on Kerry's subcommittee: "John Kerry was willing to spearhead this difficult investigation. Because many important members of his own party were involved in this scandal, it was a distasteful subject for other committee and subcommittee chairmen to investigate. They did not. John Kerry did."
As a final irony, contrast Kerry's legacy on BCCI with that of George W. Bush. In 1987, when Kerry was just setting out on the tortuous path that would lead to the demise of BCCI, Bush was working (using the term generously) for an outfit called Harken Energy. Harken had recently bailed out Bush's failed (and aptly named) Arbusto Oil venture, and Harken was looking for some fresh infusions of cash. Harken found the cash in the form of a very sweet $25 million loan from a bank that turned out to be a front for -- you guessed it -- BCCI. BCCI correctly concluded that there were enormous financial and political benefits to be reaped by currying favor with the President's son. According to a 1991 Wall Street Journal article, there was "a mosaic of BCCI connections surrounding Harken ... since George W. Bush came on board."
Anyone who is still undecided in this election should remember BCCI and ask him or herself this question: Do I want to vote for the guy who moved heaven and earth to get at the truth about terrorist financiers or do I want to vote for the guy who climbed into bed with them?
Over a five-year period lasting from 1987 until 1992, John Kerry almost single-handedly led an arduous investigation that directly resulted in the demise of the notorious Bank of Commerce and Credit International (BCCI), dubbed by one CIA official as the "Bank of Crooks and Criminals International." Kerry carried on the investigation of BCCI in spite of the opposition of powerful political forces, including significant figures in the political leadership of his own party. At the end of the day, Kerry succeeded in laying bare a chronicle of money laundering, fraud, bribery, and support for international terrorism without historical parallel. Indeed, Kerry's investigation uncovered the fact that a then little-known Saudi businessman named Osama Bin Laden -- he whose name could not be uttered at the Republican convention -- maintained a series of accounts at BCCI for the purpose of directing money to Islamic terrorists. An excellent account of Kerry's extraordinary work in the BCCI case is set forth in an article entitled "Follow The Money" appearing in the current issue of The Washington Monthly. It should be required reading for anyone who has the slightest doubt about the strength of John Kerry's Senatorial record, his tenacity and integrity, and the indisputable fact that he is the superior candidate in this election.
First of all, consider why terrorist funding is such a crucial subject. It is, in essence, what 9/11 was all about. Even though Bush has used 9/11 as an excuse to promote all sorts of expensive weapons systems such as Reagan's old "Star Wars" boondoggle, the reality is that weaponry had almost nothing to do with 9/11. The only weapons that were wielded that day were box cutters. What made 9/11 a reality was the fact that well-to-do Islamic fundamentalists, primarily located in Saudi Arabia and other Gulf oil states, were able to take advantage of an international financial network that enabled them to funnel money to their operatives in the United States so that those operatives could take flying lessons and ultimately coordinate their actions on that horrible day. It is no exaggeration to say that if you cut off the flow of money, you go a long way to stopping terrorism.
That is why Kerry's record in the BCCI case is so relevant to this election. First, some background on BCCI. The bank was founded by Agha Hasan Abedi, a Pakistani Islamic fundamentalist who had the avowed objective of "fighting the evil influence of the West." Abedi located BCCI's headquarters in Luxembourg, in part to conceal its connection to Islamic organizations and in part to take advantage of the generous bank secrecy laws that the Grand Duchy has to offer. In short order, BCCI became the bank of choice not only for Muslim terror networks, but also for drug dealers and other major international criminals.
In 1987, after taking a leading role in uncovering the Iran-Contra scandal (the subject of a future blog), Senator Kerry was appointed Chair of the Subcommittee on Terrorism, Narcotics, and International Operations. In the process of following-up on information about cocaine trafficking by Contra leaders, Kerry's staff became aware of the fact that Panamanian dictator Manuel Noriega appeared to be running large amounts of drug money through a then little-known bank called BCCI. Kerry obtained authorization from the Senate Foreign Relations Committee to begin an investigation and issue subpoenas. The Reagan Justice Department however, which the CIA had alerted to BCCI's illegal activities as early as 1985, promptly put a stop to the investigation, claiming that Kerry's subpoenas were interfering with ongoing criminal cases. Kerry continued to press the investigation but in early 1989, was rebuffed by the Senate Foreign Relations Committee and told to end the inquiry.
It is here that Kerry's doggedness becomes striking. Instead of moving on to the sort of meaningless pap that occupies the days most politicians in Washington, Kerry continued to press to have the truth about BCCI uncovered. Kerry and his staff investigators provided the information they had uncovered about BCCI to the Manhattan District Attorney's Office, which now began its own investigation of BCCI in conjunction with the Federal Reserve Board.
In 1990, the Justice Department announced a settlement with BCCI, one which would impose insignificant fines, would not include any charges against BCCI's officials, and would permit the bank to continue in operation. Kerry went public with his criticism of this outrage and demanded a new Senatorial investigation, which was finally authorized in early 1991. It soon became apparent why so many roadblocks had been placed in the way of Kerry's investigation. Kerry uncovered evidence that numerous prominent political figures -- both Democrats and Republicans -- had long-standing working relationships with BCCI. One of the most prominent of BCCI's backers was legendary Democratic power broker Clark Clifford. Kerry was confronted with enormous pressure from within his own party to back off; Democratic luminaries such as Jacqueline Onassis and Pamela Harriman called Kerry's office and asked him not to go after their friend Clifford.
Kerry carried on his investigation in face of overwhelming pressure to stop it. Kerry forced Clifford to give public testimony to account for his actions. According to the Christian Science Monitor, Kerry could not have undertaken "any more potentially career disruptive move than grilling Clark Clifford."
The results of Kerry's investigation were striking. The Report of the investigation (which was issued in 1992 and can be obtained online at www.fas.org/irp/congress) runs thousands of pages and contains an extraordinarily valuable account of how terrorists and other international criminals use banking channels to carry on their activities. According to numerous Congressional staffers, Kerry himself participated personally not only in directing the investigation, but in writing the Report.
Reading the Report in light of the events of 9/11 is humbling. As noted, Osama Bin Laden utilized the services of BCCI. Post- 9/11 investigations concluded that Bin Laden's financial network was modeled on BCCI and included many of the same players in the Islamic world that had been involved with BCCI. Kerry's recommendations in the Report included proposals for new regulations to combat money laundering, and, most importantly, recommendations that the CIA and the State Department monitor international money laundering more closely and coordinate the dissemination of financial intelligence with law enforcement agencies. Unfortunately, in 1994, two years after Kerry's Report was issued, Newt Gingrich & Co. gained control of Congress and the idea of imposing new financial regulations was viewed as the height of bad taste.
Based on evidence uncovered by Kerry and the Manhattan District Attorney's Office, BCCI was finally shut down by Federal banking regulators in July 1991. No one should doubt that it was John Kerry who was responsible for making that happen. The most revealing testament to Kerry's work came from Senator Hank Brown, the ranking Republican on Kerry's subcommittee: "John Kerry was willing to spearhead this difficult investigation. Because many important members of his own party were involved in this scandal, it was a distasteful subject for other committee and subcommittee chairmen to investigate. They did not. John Kerry did."
As a final irony, contrast Kerry's legacy on BCCI with that of George W. Bush. In 1987, when Kerry was just setting out on the tortuous path that would lead to the demise of BCCI, Bush was working (using the term generously) for an outfit called Harken Energy. Harken had recently bailed out Bush's failed (and aptly named) Arbusto Oil venture, and Harken was looking for some fresh infusions of cash. Harken found the cash in the form of a very sweet $25 million loan from a bank that turned out to be a front for -- you guessed it -- BCCI. BCCI correctly concluded that there were enormous financial and political benefits to be reaped by currying favor with the President's son. According to a 1991 Wall Street Journal article, there was "a mosaic of BCCI connections surrounding Harken ... since George W. Bush came on board."
Anyone who is still undecided in this election should remember BCCI and ask him or herself this question: Do I want to vote for the guy who moved heaven and earth to get at the truth about terrorist financiers or do I want to vote for the guy who climbed into bed with them?
posted by democratic core at 3:11 PM
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