Bank deals of 5,000 terror suspects tracked

Mark Townsend for The Observer

September 10, 2006

The bank accounts of more than 5,000 suspected terrorists are being monitored by Britain's biggest financiers following fresh intelligence from MI5. This figure is the security services' highest estimate yet for the number of British-based individuals suspected of involvement in plotting attacks. Senior banking sources have told The Observer that 200 current accounts have recently been frozen as part of the fight against the financing of jihadist terrorism.

The big four banks - Barclays, HSBC, Lloyds TSB and Royal Bank of Scotland, which owns NatWest - have been instructed by MI5 and the US Treasury's Office of Foreign Assets Control to monitor 'suspicious' transactions involving named individuals and companies. Sources at Britain's biggest bank, HSBC, said that 'just north' of 5,000 UK accounts had been 'flagged up' and were being watched as part of evidence-gathering against suspects. It has also emerged that financial details provided by banks played a key part in last month's arrests involving an alleged plot to blow up airliners and the more recent arrests linked to an alleged network of training terror camps.

Banks have been told to monitor 'cross-border payments' amid evidence that British-based cells are affiliated to terrorist groups such as al-Qaeda. A senior banking source said: 'Every cross-border payment passes through an electronic system. The cross-border stuff we are particularly interested in.' Each of the big four banks has frozen the accounts of around 50 individuals who are suspects, according to the source. The sums involved, however, are generally modest, with most terrorists appreciating that moving large amounts through current accounts can attract suspicion. However, the extent of the banks' involvement in neutering the terrorist threat has sparked a fierce backlash from some British Muslims amid claims of mistaken identities and the persecution of innocent account-holders. Ahmed Salama was stunned when his HSBC account was frozen nine days ago. He received a letter informing him that HSBC wished to end their relationship after 11 years.

The decision left Salama unable to pay 12 bills and his mortgage. Despite repeatedly asking for an explanation, HSBC has only told him it detected 'suspicious' payments in his account. Salama, a businessman authorised by the Financial Services Authority whose account was upgraded by the bank only two months ago, said: 'The whole situation has put my whole life in a spin, emotionally and financially. I am a normal Londoner who plays snooker once a week, a little football and cares for the wife and kids. They have taken everything away from me with no real explanation and have not allowed me to pay bills.'

Salama said the only cross-border payment he is aware of making is £20 a month to a British-based charity, which sponsors children in Afghanistan. 'My only conclusion is that, with the majority of people being arrested over alleged terrorism offences having the name of "Ahmed", they think I am one of them or I am laundering money. I can honestly say I am neither,' Salama said. HSBC admitted that cases of mistaken identity do sometimes occur.

[Don’t things like this make you feel all warm and safe?]