Yemen Needs Legal Protection Money Laundering, Another Side of Terrorism [Archives:2001/41/Business & Economy]

October 8 2001

Banking sources have denied that the Central Bank of Yemen will examine private money and investments or entrust the capitals’ terrorist groups at Yemeni Banks because of the late incidents in the US. The source said that it did not exclude the movements of checking, investigating or pursuing money flow. In fact, money laundering seems to be weak, but practicing illegal trade activities have increased substantially through investment processes or by individuals who merged illegal trade profits, particularly with banking speculation or smuggling expensive goods and services. 
The term “money laundering” emerged in the USA at the beginning of 1980s. It was then related to cocaine and heroine, later this trade was extended a great deal to include different processes and different phases. In money laundering, illegal and legal capital is merged together and investing it legally. The American administration has considered the Islamic charitable capital associations as that of Osama bin Laden’s capital. The US has urged its allies and international banks to freeze his capital. These banks act according to what US has said, that this money supports a terrorist group. But here in Yemen, it is difficult to discover accounts owned by terrorists. Financial activities are restricted to specific activities, and certainly it is known to all, such as Al-Quds Fund, Intifadha Fund or the Islah Charitable Society. With the high increase of the illegal trade, it has been estimated that money laundering in the world has reached $2 trillion. The Washington D.C. and New York incidents served to freeze the capital of terrorist groups. The situation has become more dangerous when these groups are suspected of terrorist acts, whether in Yemen or abroad. Yemen has to distinguish between the real and false investor. Thus, legislation must be issued to get rid of money laundering, and a distinction should be made between governments’ encouragement in investment processes and motivating capital for investment in all different sectors.