ADL Alerts Federal Government Terrorists May Use "E-Currency" to Transfer
Funds on Internet
New York, NY, January 21, 2003 � As the government moves to freeze the
finances of terror groups and their supporters, the Anti-Defamation League
(ADL) today alerted the U.S. Customs Service that terrorists may seek to
conceal financial transactions using a unique form of online currency.
The potential abuse by terrorists of an Internet currency that enables
deposits and transfers of precious metals using online trading accounts,
"merits serious attention" by those government agencies who track sources
of terrorist financing, said Abraham H. Foxman, ADL National Director.
"While we know of no links between e-currency and terrorism at the present
time, e-currency merits serious attention given the record of Internet use
by terrorists and the abuse of similar devices by domestic extremists,"
said Mr. Foxman.
In a letter to U.S. Customs Commissioner Robert C. Bonner, ADL said that
terrorists may find e-currency appealing because it enables large amounts
of currency to be exchanged electronically without leaving a record of the
transaction. Because of its anonymity, economists and Secret Service
officials have recently expressed concern about the potential for money
laundering using e-currency channels.
About half of the system's physical reserves are located in Dubai, United
Arab Emirates, apparently for financial reasons, but also to help in the
marketing of e-dinar, which was launched in September 2000. E-dinar is
affiliated with the Islamic Mint, a private organization dedicated to
reviving gold and silver currencies described in the Quran.
The Anti-Defamation League, founded in 1913, is the world's leading
organization fighting anti-Semitism through programs and services that
counteract hatred, prejudice and bigotry.
http://www.adl.org/PresRele/Internet_75/4222_75.asp
