Saudi Arabia: Terrorist Financing Issues

The September 11, 2001 attacks fueled criticisms within the United States of alleged Saudi involvement in terrorism or of Saudi laxity in acting against terrorist groups. Of particular concern have been reports that funds may be flowing from Saudi Arabia and other Middle East countries to terrorist groups, largely under the guise of charitable contributions. Critics of Saudi policies have cited a number of reports that the Saudi government has permitted or encouraged fund raising in Saudi Arabia by charitable Islamic groups and foundations linked to Osama bin Ladens Al Qaeda organization or like-minded entities. The final report released by the bipartisan National Commission on Terrorist Attacks Upon the United States the 911 Commission indicates that the Commission found no evidence that the Saudi government as an institution or senior Saudi officials individually funded Al Qaeda. The report also states, however, that Saudi Arabia was a place where Al Qaeda raised money directly from individuals and through charities, and indicates that charities with significant Saudi government sponsorship may have diverted funding to Al Qaeda. In numerous official statements and position papers, Saudi leaders have said they are committed to cooperating with the United States in fighting terrorist financing, pointing out that Saudi Arabia itself is a victim of terrorism and shares the U.S. interest in combating it. Saudi leaders acknowledge providing financial support for Islamic and Palestinian causes, but maintain that no Saudi support goes to any terrorist organizations, such as the Hamas organization. The U.S. State Department in its most recent annual report on international terrorism states that Hamas receives some funds from individuals in the Persian Gulf states but does not specifically mention Saudi Arabia.