Al-Qaida turns to kidnapping to build up its cash reserves

Associated Press

WASHINGTON

Pressured by increased scrutiny of terrorist money sources and strikes aimed at its financiers, al-Qaida’s core organization in Pakistan has turned to kidnapping for ransom to offset dwindling cash reserves, according to U.S. officials, some of whom cited information in files retrieved from Osama bin Laden’s compound.

Bin Laden’s interest in kidnapping as a cash-raiser bolsters accounts that the financial squeeze has staggered al-Qaida, forcing it to search for alternative funding sources. Officials would not detail al-Qaida’s role in specific crimes, but the group’s affiliates have targeted diplomats, tourists and merchants.

His awareness of al-Qaida’s growing use of kidnapping is evidence that even in isolation behind high walls in Abbottabad, Pakistan, bin Laden kept tabs on how his network moved its money. The al-Qaida founder was killed last month by U.S. Navy SEALs.

“There are clearly times for them when money is tight,” said Rep. C.A. Dutch Ruppersberger of Maryland, the top Democrat on the House Intelligence Committee. “We’ve seen that their donors have been less dependable and we’re seeing them turning more to kidnapping as a way of keeping the money coming in.”

Experts from the CIA’s National Counterterrorism Center, the Treasury Department and the FBI and military are trying to learn more from the recovered files about al-Qaida’s money sources and the impact of bin Laden’s death on the group’s financial future. They hope to identify important al-Qaida donors, especially wealthy Persian Gulf figures who dealt with bin Laden dating to his work with Afghan fighters in the campaign against Soviet occupiers in the late 1980s.

The Treasury Department’s acting undersecretary for terrorism and financial intelligence, David Cohen, said U.S. efforts are focused on disrupting al-Qaida’s cash flow from donors, fundraisers and facilitators. “Al-Qaida’s supporters ought to be wondering if their identities have been revealed,” Cohen said.

Analysts are examining lists of numbers found in bin Laden’s files, hoping to find bank accounts, credit cards or ledgers depicting the financial underpinnings of network known to demand strict accounting from its operatives.