T4 B1 Ice Issues Fdr- Entire Contents- Reference Materials- 1st Pgs Only- For Reference 135

Investigative Programs

Protecting America's Financial Systems Sfe Homeland Security

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OPERATIONS Operation Cornerstone A New Financial Investigations Program In July of 2003, Secretary Ridge announced Operation Cornerstone, a new financial investigations initiative that will not only prosecute money laundering crimes but will initiate a new approach of working with the private sector to shore up potential weaknesses in financial systems. Launched by U.S. Immigration and Customs Enforcement (ICE), Operation Cornerstone is ICE's premier financial crime program that seeks to identify vulnerabilities in financial systems through which criminals launder their illicit proceeds, bring the criminals to justice, eliminate the vulnerabilities, and develop a working partnership with industry representatives to share information and close industry-wide security gaps that could be exploited by money launderers and other criminal organizations. "Safeguarding the integrity of America's financial systems is a key part of homeland security," said Secretary Ridge. "Criminal organizations are seeking new ways to finance their operations, and the Department of Homeland Security is moving aggressively to identify vulnerabilities within U.S. financial systems that could be exploited to those ends." DHS is also conducting joint outreach and training programs for members of the financial and trade communities. As part of the Cornerstone Program, ICE has created a unit solely dedicated to providing training to the private sector on how to identify and prevent exploitation by criminal organizations. Also, under the SHARE (Systematic Homeland Approach to Reducing Exploitation) program, officials from the ICE will be joined by the Secret Service to jointly conduct semi-annual meetings with executive members of the financial and trade communities impacted by money laundering, identity theft, and other financial crimes, to share data on specific investigative outcomes from investigations into money laundering, identity theft, and other financial crimes

Cornerstone priorities: • • • • •

Identify and assess the means and methods used by criminals to exploit financial systems in order to transfer, launder and otherwise mask the true source of criminal proceeds. Work with specific private sector industries to gather new information and reduce vulnerabilities found within existing financial systems. Assign a dedicated special agent to each of the 25 ICE field offices to liaison with the private sector. Investigate and prosecute criminal organizations exploiting emerging traditional and nontraditional financial systems. Work with financial institution security teams to help them understand how criminal organizations exploited financial systems in their industry.

Task force on terror funding moved from Customs - The Washington Times

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The Washington Times www.washingtontimes.com

Task force on terror funding moved from Customs By Jerry Seper Published September 16, 2003

A White House-backed decision to move the nation's most successful terrorist-related financial crimes task force from the Customs Service to the FBI has drawn criticism from law enforcement authorities who say the bureau can't effectively conduct the complex financial investigations. Created in the wake of the September 11 attacks, "Operation Green Quest" brought together the top financial investigators from the Treasury Department, Internal Revenue Service, Secret Service and Customs to target the systems, organizations and people serving funders of terrorist groups worldwide. Green Quest, which made 79 arrests and seized more than $33 million in a 19-month period, was designed to harness the investigative financial expertise of the Treasury Department to freeze accounts, seize assets and bring criminal actions against those funding terrorism. "These are incredibly confusing and complex cases, and a successful prosecution requires investigators with years of experience and expertise," said a top Treasury official who asked not to be identified. "Whatever the rationale to move Green Quest to the FBI, it's clear somebody never heard the old adage: If it's not broken, don't fix it." Other veteran agents familiar with the task force said the FBI's grab of the program jeopardized several ongoing investigations. The task force's demise was authorized May 13 when Attorney General John Ashcroft and Homeland Security Secretary Tom Ridge signed a "memorandum of agreement" giving Green Quest's duties to the FBI. The memo, approved by President Bush, designated the FBI as the lead agency in the investigation of terrorist financing. The memo specifically barred further use of the name "Green Quest." The new Bureau of Immigration and Customs Enforcement (ICE), which had been touted as the investigative arm of Homeland Security, was removed entirely from terroristfinancing investigations. Instead, it was given "Operation Cornerstone," a program that identifies vulnerabilities in financial systems through which money could be laundered. But, the memo says, when ICE agents discover terrorism-related ties, they must turn the probe over to the FBI. Ironically, the decision to give the FBI control of Green Quest came at a time that Customs Commissioner Robert C. Bonner, who created the task force, was looking to double the number of intelligence analysts assigned, expand the program throughout the country and open Green Quest offices in the Middle East and Europe. In January, Mr. Bonner, who now heads the Bureau of Customs and Border Protection (CBP), told The Washington Times the task force had "hit its stride" with more than 600 active investigations and it was "time to expand" to capitalize on what he thought would be a successful effort to target secret financial organizations here and abroad on which terrorists rely to raise funds to commit new attacks.

http://dynamic.washtimes.com/print_story.cfm?StoryID=20030915-103759-9265r

9/29/03