Countries join U.S. effort to cut money to terrorists; Bush says $6 million blocked

By MARCY GORDON
AP Business Writer

WASHINGTON – Some $6 million has been blocked and 50 bank accounts frozen as countries around the globe join the U.S. effort to stop the flow of money to terrorist networks, President Bush said Monday.

The frozen accounts include 30 in this country and 20 overseas, Bush said in a speech one week after he announced a move to freeze the assets of Islamic militant Osama bin Laden and 26 other people and organizations.

"And we're just beginning," Bush declared.

In his executive order barring Americans from doing business with any of the named individuals or organizations, Bush also promised to shut down U.S. operations of foreign banks that conduct business with bin Laden, the prime suspect in the Sept. 11 terrorist attacks, or his associates.

Soon after, foreign ministers from the seven leading industrialized nations – the United States, Japan, Germany, Britain, France, Italy and Canada – agreed to produce a coordinated plan to freeze the assets of terrorist organizations.

And with uncharacteristic speed, the United Nations Security Council unanimously adopted Friday night a U.S.-sponsored resolution requiring all 189 U.N.-member nations to deny money, support and sanctuary to terrorists.

Under the legally binding resolution, all countries must make the "willful" financing of terrorism a criminal offense, immediately freeze terrorist-related funds and prevent the movement of individuals and groups suspected of having terrorist connections. Nations must also deny terrorists any "safe haven" and speed the exchange of information, especially on the actions and movements of terrorists.

"This is the final piece in pulling together this international coalition in denying terrorists funding," Treasury Department spokeswoman Michele Davis told reporters Monday.

In the week since the U.S. order to freeze assets, actions have been taken with "amazing speed on every possible front," she said.

Davis declined comment on a report in Monday's New York Times that administration officials were preparing to expand the asset freeze to some two dozen additional charities and other organizations suspected of providing money to bin Laden's terrorist operations.

As of Monday, according to Treasury, governments of 19 nations had ordered banks to block the assets of the 27 individuals and organizations named on the U.S. list. The 19 include most of the United States' major economic allies (Italy and Russia are exceptions) as well as Pakistan and the United Arab Emirates.

U.S. officials acknowledge that the bulk of the suspect money is in accounts outside of the United States.

In France Monday, major bank Credit Lyonnais froze assets belonging to Al Shamal Islamic Bank, a Sudanese institution linked to bin Laden. The Khartoum-based bank is on lists being circulated to banks by regulatory authorities in Europe.

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APNP-10-01-01 1626CDT