######### August 29, 2002 Contact: Tasia Scolinos

**For Immediate Release (202) 622-2960**

Statement by U.S Treasury Secretary for Enforcement Jimmy Gurulé in
Support of Today's New Terrorist Financing Designations

In a significant action in our ongoing campaign against terrorism,
today, our two nations -- the United States and Italy - are blocking the
property of 25 individuals and entities based on their support for
terrorism. This action furthers international efforts to shut down
identified terrorist financing networks using targeted freezing actions
under domestic and international law. In accordance with relevant United
Nations procedures, we are submitting these names to the United Nations
for listing by the UN 1267 Sanctions Committee because of the
connections between these entities and individuals and Al Qaida.

Of the 25 new designations, the 11 individuals are related to the
Salafist Group for Call and Combat ("GSPC"), a separatist faction of the
Gruppo Islamico Armato ("GIA"). The GSPC, an Algerian-based terrorist
organization that continues to operate in North Africa as well as Italy,
is a lethal terrorist group and its members support and finance
terrorism around the globe. The United States designated both the GSPC
and the GIA on September 24, 2001, and the United Nations placed them
both on the list of terrorist entities linked to Al-Qaida on October 8,
2001.

Fourteen of the 25 entities designated today are owned or controlled by
either Ahmed Idris Nasreddin or Youssef Nada. Both of these individuals
have been previously designated as supporters of terrorism and the Al
Qaida network by the United States and the international community under
U.N. Security Council Resolutions 1267,1333 and 1390. Today's action is
another step toward shutting down the terrorist-financing network
orchestrated by Nada and Nasreddin. This designation of additional
corporate holdings will further choke the flow of funds that facilitate
the financing of terrorism.

The simultaneous blocking of the assets of these individuals and
entities by Italy and the United States demonstrates the international
commitment to choke off the sources of financing for terrorist acts.
This particular designation is also unique, in that it is the direct
result of the collaborative and cooperative efforts of not just two, but
four nations - the United States, Italy, the Bahamas, and Luxembourg -
working together toward a common goal.

All four of those nations provided financial information, investigative
assistance, or key documents or support -- which allowed us to make the
case necessary for today's designation. Today's action demonstrates the
commitment of the international coalition to the fight against terrorist
financing.

We are confident that our efforts are having real-world effects. Al
Qaida and other terrorist organizations are suffering financially as a
result of our actions. We also believe that potential donors are being
more cautious about giving money to organizations where they fear that
the money might wind up in the hands of terrorists. In addition, greater
regulatory scrutiny in financial systems around the world is further
marginalizing those who would support terrorist groups and activities.

Our top priority is to prevent terrorist attacks by disrupting terrorist
finances. As President Bush has said, we seek to \"starve the terrorists
of funding.\" Today's joint designation with Italy demonstrates our
commitment to exposing, isolating and incapacitating the financial
infrastructure of terrorist organizations worldwide. This action is one
more measure that we and the international community are taking to
attack terrorist financing.

We have a strong history of international cooperation in freezing
terrorist-related assets. Over 160 countries have blocking orders in
force, hundreds of accounts worth more than \$70 million have been
blocked abroad, and foreign law enforcement have acted swiftly to shut
down terrorist financing networks and arrest financiers. There have been
other shared initiatives. On March 11, 2002, the United States and Saudi
Arabia jointly designated two branches of a charity, and on April 19,
2002, the G7 jointly designated nine individuals and one entity. These
efforts have been bolstered by actions from the European Union which has
issued three lists of designated terrorists and terrorist groups for
blocking. Since September 11th, the United States and other countries
combined have frozen more than \$112 million in terrorist-related
assets. As a result of our efforts -- including today's action - 234
individuals and entities are currently designated as financiers of
terror.

-30-