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Today I thanked the Government of the U.A.E. for its support in Operation Enduring Freedom and the global war against terrorism. U.A.E. action in blocking terrorist accounts and closing down a targeted financial network has been particularly important, and I look forward to continued close cooperation in the future.
The roundtable hosted by Central Bank Governor H.E. Sultan bin Nasser Al Suweidi was extremely useful in understanding the alternative remittance systems, including hawalas, and their vulnerabilities to abuse by those who seek to move money without a trace. Hawalas provide efficient low-cost services to many individuals around the world and is a legitimate means of transferring funds. At the same time, those who fund terror can take advantage of the anonymity and lack of a paper trail in hawala transactions. In that regard, we welcome the broad international efforts to reexamine regulatory policies and practices for hawalas and other alternative remittance systems, and we very much appreciate that willingness to explore new efforts to improve transparency and record-keeping.
Of special note is the leadership displayed by the U.A.E. in inviting to host an international conference on hawalas in early May 2002. This conference presents an important opportunity to stimulate world discussion in regard to the hawala system and the associated vulnerabilities for money laundering and the financing of terrorism. It will also allow countries to learn from each other and to share how different countries have attempted to regulate these alternative systems. We commend the U.A.E. Government for taking on a leadership role in this area and will lend our full support to the initiative.
Additionally, I was please to hear that the Gulf nations are developing a joint initiative to ensure that charities throughout the world are not abused by terrorists. We are all committed to safeguarding the sanctity of charitable giving, and we look forward to joining in that effort. The U.S. also welcomes the U.A.E.'s commitment to participate in the terrorist financing self-assessment project of the Financial Action Task Force (FATF), of which the Gulf Cooperation Council is an active member.