Home
In this issue

July 24, 2008

Rabbi Berel Wein: On the road again --- and again and again

Richard Z. Chesnoff: Mideast Refugees --- Failure vs. Success

JWisdom:: Word power is about more than vocabulary by Rabbi Sroy Levitansky

July 23, 2008

Jonathan Tobin: The Mufti of Jerusalem's Nazi ideology lives on among contemporary Islamists

The Kosher Gourmet by Joe Gray: Smoked paprika turkey meatballs simmered in red wine and tomato sauce

JWisdom:: 'Routine' doesn't need to mean ‘rote’ By Rabbi David Aaron

July 22, 2008

Yossi Klein Halevi: Dear Barack Obama

Elliot B. Gertel: Eli Stone: Self-indulgent, arrogant corporate attorney as modern-day prophet

JWisdom:: Three Weeks - Nine Days - One Purpose by Rabbi Mordechai Becher

July 21, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Spending your kids' money

Mitch Albom: A grim exchange illustrates a key difference

JWisdom:: The Holocaust in the Perspective of Faith: Hammered on the Anvil --- Severed by the Sickle by Rabbi Nosson Scherman

July 18, 2008

Rabbi Nathan Lopes Cardozo: The Sanctification and Importance of Time

Caroline B. Glick: US wants it absolutely clear it has no intention of attacking Iran's nuclear installations

Mona Charen: What can you say about a people who welcome a child murderer as a hero?

JWisdom:: Living a dog's life, dawg? by Rabbi Dovid Gross

July 17, 2008

Steven Emerson: Deals with devils

Libby Lazewnik: One Step at a Time

JWisdom:: Leader the follower? by Rabbi Sroy Levitansky

July 16, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Poaching humans

The Kosher Gourmet by Linda Gassenheimer: Meaty pasta salad with summer berries perfect for warm evenings

JWisdom:: Keeping A Secret by Rabbi Mordechai Becher

July 15, 2008

Dennis Prager: False Equation: Opposing Same-Sex Marriage and Opposing Interracial Marriage

Joel Greenberg: Researchers look to Israeli circumcision program to help combat AIDS 'Alternatives' to Logic Won't Work

JWisdom:: Re-Jew-venating prayer, Part V: Why Judaism ISN'T Spiritual by Rabbi David Aaron

July 14, 2008

Jonathan Rosenblum: A warning from Canada to those who value life

Jonathan Tobin: 'Alternatives' to Logic Won't Work

JWisdom:: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Poland's Unique Antisemitism, Part II

July 11, 2008

Rabbi Francis Nataf: It's hard to be humble when you're great

Caroline B. Glick: A tale of two hostages

JWisdom:: Profane for Prophet by Rabbi Sroy Levitansky

July 8, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. Duty to save gullible from themselves?

Frank J. Gaffney, Jr.: Islamists have the West just where they want us

JWisdom:: Putting the Spirit Back into Spirituality, Part 3: The Fully Loaded Human Being by Rabbi Dovid Gross

July 3, 2008

Rabbi Dr. Abraham J. Twerski: A spiritual budget (TOUCHING!)

Jeff Jacoby: Israel still paying for its defeat

JWisdom:: Re-Jew-venating prayer, Part IV by Rabbi David Aaron

JWisdom:: The Moses Method by Rabbi Sroy Levitansky

July 2, 2008

Jonathan Tobin: Appeasers Make Poor Patriots

The Kosher Gourmet By Kathleen Purvis: Slaw, y'all: For BBQs or Sabbath dinner, these southern recipes are something else!

JWisdom:: Rabbi Mordechai Becher: Jewish Rx for A Simpler Life

July 1, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Q. I think it's important to leave a legacy to my children. How much should I save towards this end?

Paul Greenberg:A President who is history deficient?

JWisdom:: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Poland's Unique Antisemitism

June 30, 2008

Jonathan Rosenblum: Remembering the architect of Torah Judaism for the modern world

Abe Novick: Hulk: Still a Jew?

JWisdom: : Putting the Spirit Back into Spirituality, Part 2: The Abandoned Child

June 26, 2008

Rabbi Abraham J. Twerski: Quantum leap to evil

Caroline B. Glick: Victimized families must not be allowed to dictate policy

June 25, 2008

Rabbi Yonason Goldson: Today in Biblical History: King Jeroboam of Israel prevents pilgrimage to Jerusalem

Jonathan Tobin: Real Friends and Real Enemies

JWisdom: Raping of reason By Rabbi Sroy Levitansky

June 25, 2008

Steven Emerson: Kristof: Never Mind the Terrorists

Stratfor Intelligence Briefing: Mediterranean Flyover: Telegraphing an Israeli Punch?

JWisdom: Rabbi David Aaron: Re-Jew-venating prayer, Part III

June 24, 2008

Caroline B. Glick: What were they thinking!?

Frank J. Gaffney, Jr.: Guilty knowledge

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Warping Innocence

June 23, 2008

The Jewish Ethicist by Rabbi Dr. Asher Meir: Diploma dilemma

Jeff Jacoby: A world without children

JWisdom: Rabbi Dovid Gross: Putting the Spirit Back into Spirituality --- Introduction

June 20, 2008

Rabbi A. Henach Leibowitz: Man: The Crowning Glory of Creation

Caroline B. Glick: Israel's darkest week

JWisdom: We aren't worthy? by Rabbi Sroy Levitansky

June 19, 2008

Rabbi Elazar Meisels: The saints who don't come marchin' in

Chris Christoff: Muslim woman demands an apology from Obama after camera snub

June 18, 2008

Jonathan Tobin: Still Dancing Around Jerusalem

The Kosher Gourmet by Steve Petusevsky: Chilled fruit and vegetable soups

JWisdom: Souls Need A Check Up? by Rabbi Mordechai Becher

June 17, 2008

Rabbi Avi Shafran: Baby Einstein

Caroline B. Glick: Bush's rhetoric, Bush's policies

JWisdom: Re-Jew-venating prayer, Part II by Rabbi David Aaron

June 16, 2008

Varda Branfman: Bob Dylan, won't you please come home?

Diana West: Academic dares to question the 'religion of peace'

JWisdom: Holocaust in the Perspective of Faith by Rabbi Nosson Scherman: Positive Backfire

March 22, 2007

J-Rhythms with Avraham Rosenblum: JWR's cutting-edge music program showcasing performers -- singers, song writers, musicians, and bands -- who learn and live the Torah lifestyle (OUR NEWEST IGODCAST !)

Oct. 29, 2003
Mortimer B. Zuckerman: Graffiti On History's Walls (MUST-READ!)

Jewish World Review July 26, 2005 /19 Tamuz, 5765

Terrorism's business partners

By Frank J. Gaffney, Jr.


Printer Friendly Version

Email this article



http://www.JewishWorldReview.com | In the wake of recent bombings in London and Egypt confirming the vulnerability of even relatively vigilant societies to Islamofascist terrorism, the question occurs: Are we serious about fighting this menace with every instrument at our disposal?


A test of the seriousness of the U.S. Senate will be offered as soon as today [July 26]. Senators will be asked to choose between two amendments to the defense authorization bill (S.1042) bearing on one of this country's most powerful and yet largely unutilized tools: Denying U.S. investment capital, technology and other commercial benefits to state-sponsors of terror.


To be sure, successive administrations have imposed economic and trade sanctions on terrorist-sponsoring states like Iran, Libya, Sudan, Cuba, Syria and North Korea. Existing law — notably, the International Emergency Economic Powers Act (IEEPA) — grants the President the authority to bar U.S. companies from doing business with nations that do business with terrorists.


Unfortunately, there is a loophole in the law, a loophole some American firms have used to circumvent and undermine U.S. sanctions. By establishing an offshore subsidiary, these companies have proceeded to engage in commerce with sanctioned states even though the parent is prohibited from doing so.


In some cases, the affront to the letter and spirit of the law has been egregious. Front companies amounting to little more than an offshore post office box have been created to perform end-runs around official efforts to stem the money flowing to those who are trying to kill us.


This practice has properly inspired bipartisan outrage in the Senate. Last week, two Senators — Frank Lautenberg, Democrat of New Jersey, and Maine Republican Susan Collins, who chairs the Senate Governmental Affairs Committee — expressed incredulity and anger at this flouting of the law and outdid each other offering amendments intended to put an end to it.


Sen. Lautenberg told his colleagues: "President Bush has made the statement that money is the lifeblood of terrorist operations. He could not be more right. Amazingly, some of our corporations are providing revenue to terrorists by doing business with these rogue regimes. My amendment is simple. It closes a loophole in the law that allows this to happen, that allows American companies to do business with enemies of ours."


For her part, Sen. Collins declared: "The allegations are that these foreign subsidiaries are formed and incorporated overseas for the specific purpose of bypassing U.S. sanctions laws that prohibit American corporations from doing business with terrorist-sponsoring nations such as Syria and Iran. There is no doubt that this practice cannot be allowed to continue….The examples that we have heard, where American firms simply create new shell corporations to execute transactions that they themselves are prohibited from engaging in, are truly outrageous."


If the two Senators have a shared determination to stop U.S. companies from using foreign subsidiaries to engage in such "truly outrageous" behavior, they part company over how to do that. The Lautenberg amendment would explicitly amend IEEPA to ensure that foreign subsidiaries controlled or fifty-one percent or more owned by American businesses are bound by the same sanctions regimes as are the parent companies.


Donate to JWR


Citing State Department concerns about the impact such an "extraterritorial" extension of U.S. law would have on American foreign investments and this country's relations with its allies, Sen. Collins has offered an alternative to the Lautenberg language. The Collins amendment would seek to penalize individuals or entities who evade IEEPA sanctions — if they are "subject to the jurisdiction of the United States." This is merely a restatement of existing regulations.


The problem with this formulation is that, in the process of purportedly closing one loophole, it would appear to create new ones. As Sen. Collins told the Senate: "Some truly independent foreign subsidiaries are incorporated under the laws of the country in which they do business and are subject to that country's laws, to that legal jurisdiction. There is a great deal of difference between a corporation set up in a day, without any real employees or assets, and one that has been in existence for many years and that gets purchased, in part, by a U.S. firm."


It is a safe bet that every foreign subsidiary of a U.S. company doing business with terrorist states will claim it is one of the ones Sen. Collins would allow to continue enriching our enemies, not one prohibited from doing so. If the Senate is serious about truly closing this loophole, it must adopt the Lautenberg Amendment.


The Lautenberg amendment will not, by itself, win the war on terror. It is evidence of our seriousness of purpose, however. Flouting American law in ways that undermine the financial front in that war is not only, as Sen. Collins puts it, "outrageous"; it is hazardous to our health. And, as the most recent attacks in Europe and the Middle East underscore, not just our health but that of others — including those in whose countries such foreign subsidiaries operate.


Adoption of the Lautenberg amendment will have one other salutary effect. It would also require the Securities and Exchange Commission to ensure that shareholders are made aware if publicly traded companies own at least 10 percent of a foreign company doing business in violation of U.S. sanctions on state-sponsors of terror. Such transparency would enable American investors to demonstrate their seriousness about this war, too, by divesting the stocks of such companies who partner with our enemies.


Every weekday JewishWorldReview.com publishes what many in Washington and in the media consider "must reading." Sign up for the daily JWR update. It's free. Just click here.


JWR contributor Frank J. Gaffney, Jr. heads the Center for Security Policy. Send your comments to him by clicking here.

Archives

© 2005, Frank J. Gaffney, Jr