OPENING STATEMENT OF ADCI BEFORE SENATE FOREIGN RELATIONS SUBCOMMITTEE ON TERRO

Created: 10/31/1991

OCR scan of the original document, errors are possible

OPENING STATEMENT OF ADCI BEFORE

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SENATE FOREIGN RELATIONS SUBCOMMITTEE ON TERRORISM, NARCOTICS, AND INTERNATIONAL OPERATIONS

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THE PRIMARY REASON CIA FOCUSED ON BCCI FROMAS THE MAJOR INVOLVEMENT OF THE BANK IN NARCO-DOLLARORLDWIDE BASIS. UBSTANTIAL COMPONENT OF THE AGENCY COUNTERNARCOTICS PROGRAM IS THE COLLECTION OF STRATEGIC INTELLIGENCE ON THE FOREIGN PERSONS, BANKING MECHANISMS AND MODUS OPERANDI USED BY MAJOR NARCOTICS TRAFFICKING, LIKE THE COLOMBIAN CARTELS, TO CLANDESTINELY MOVE AND INVEST THEIR MONEY.

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THIS INFORMATION WAS COLLECTED AND DISSEMINATED IN8 TO NSA, STATE, DIA, DEA, CUSTOMS, TREASURY, FBI, WHITE HOUSE, USCINCSO.

THIS INTELLIGENCE WAS COLLECTED AND DISSEMINATED IN0 TO NSA, STATE, DIA, FEDERAL RESERVE, TREASURY, FBI, DEA, CUSTOMS, AND WHITE HOUSE SITUATION ROOM.

MR. CHAIRMAN,OTED IN MY TESTIMONY LAST WEEK, THE AGENCY REPORTED TO THE TREASURY DEPARTMENT INS THAT BCCI HAD GAINED CONTROL OF FINANCIAL GENERAL BANKSHARES. OUR RECORDS INDICATE THAT THIS INFORMATION WAS SHARED WITH THE SECRETARY OF THE TREASURY AND THE NUMBER TWO PERSON IN THE OFFICE OF THE COMPTROLLER OF THE CURRENCY, WHO BY STATUTE IS RESPONSIBLE FOR THE EXECUTION OF LAWS RELATING TO NATIONAL BANKS. WE DID NOT DISSEMINATE THAT INFORMATION TO THE FEDERAL RESERVE BOARD. HINK IT IMPORTANT TO PUT OUR DECISION TO PROVIDE THIS INFORMATION TO THE TREASURY IN SOME CONTEXT:

ERY SUBSTANTIAL INTELLIGENCE LIAISON RELATIONSHIP WITH THE TREASURY DEPARTMENT, WHICHEMBER OF THE NATIONAL FOREIGN INTELLIGENCE BOARD. THE NATIONAL FOREIGN INTELLIGENCE BOARD CHAIRED BY THE DIRECTOR OF CENTRAL INTELLIGENCE, CONSISTS OF CIA, NSA, DIA, THE INTELLIGENCE COMPONENTS OF THE STATE DEPARTMENT, THE TREASURY DEPARTMENT, THE ENERGY DEPARTMENT, THE FBI, THE SPECIAL AIR FORCE, AND THE INTELLIGENCE STAFFS OF THE MILITARY SERVICES. NFIB MEMBERS ALL HAVE REGULAR CONTACTIDE RANGE OF INTELLIGENCE ISSUES, INCLUDING REQUIREMENTS, TARGETTING, REPORTING, ANALYSIS, IDE RANGE OF OTHER INTELLIGENCE POLICY ISSUES.

LATE4 AGENCY OFFICERS MET WITH OFFICIALS WITHIN THE TREASURY DEPARTMENT'S OFFICE OF THE COMPTROLLER OF THE CURRENCY IN ORDER TO GET THEIR REQUIREMENTS FOR COLLECTION ON INTERNATIONAL BANKING. TREASURY OFFICIALS EXPRESSED THEIR INTEREST IN, AMONG OTHER THINGS, BCCI'S "TAKEOVER EFFORTS AND SHENANIGANS."

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THE AGENCY REPORTED BCCI'S TAKEOVER OF FINANCIAL GENERAL BANKSHARES TO THE TREASURY DEPARTMENT IN THE TREASURY EXPRESSED ITS INTEREST IN THAT INFORMATION AND LEVIED FURTHER REQUIREMENTS RELATING TO BCCI'S ACQUISITION. TREASURY'S INTEREST IN OUR INTELLIGENCE FURTHERED THE AGENCY'S BELIEF THAT WE WERE DISSEMINATING THIS INFORMATION TO THE PROPER CUSTOMER.

AGENCY'S INTELLIGENCE LIAISON RELATIONSHIP WITH THE FEDERAL RESERVE BOARD', NOT AN NFIB MEMBER, ON THE OTHEP HAND, HAS BEEN QUITE DIFFERENT FROM OUR RELATIONSHIP WITH THE TREASURY DEPARTMENT. ON THE OPERATIONS SIDE, THE FED IN THE EARLY ANDAS RELUCTANT TO ENTER INTO AN ACTIVE DIALOGUE WITH THE AGENCY OVER THEIR SPECIFIC COLLECTION REQUIREMENTS OR PROVIDE THE AGENCY WITH TARGETTING GUIDANCE. WITH RESPECT TO FINISHED INTELLIGENCE IN THE EARLY AND MID, THE FED WASASSIVE CONSUMER, ONLY VERY RARELY REQUESTING INTELLIGENCE ON SUBJECTS OF PARTICULAR INTEREST TO THEM.

I WOULD LIKE TO POINT OUT, MR. CHAIRMAN, ASENTIONED IN LAST WEEK'S TESTIMONY, THAT THE AGENCY HAS BEGUN TO LOOK AT ITS

PROCEDURES FOR DISSEMINATING FOREIGN INTELLIGENCE ONFINANCIAL AND BANKING ISSUES. AS PART OF THAT EFFORT. OFFICIALS FROM THE AGENCY HAVE BEEN ENGAGED IN DISCUSSIONS WITH THE FEDERAL RESERVE BOARD TO DETERMINE HOW THE AGENCY CAN BEST SERVE THE FED'S FOREIGN INTELLIGENCE NEEDS.

CORRECTIONS FOR THE RECORD OF ADC I BCCI TESTIMONY

AFTER FURTHER FOLLOWTJP AGENCY STAFF RESEARCH, WE WOULD LIKE TO MAKE THE FOLLOWING CORRECTIONS FOR THE RECORD TO THE PREVIOUS BCCI PUBLIC TESTIMONY:

ORMER PRESIDENT CARTER'S SECRET SERVICE ADVANCE TEAM WAS BRIEFED ON BCCI'S ILLEGAL ACTIVITIES BY THE AGENCY DURING THEIR VISIT TO NIGERIA IN MARCH

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