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PRESS RELEASEOffice of Missouri State
Treasurer |
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PRESS RELEASEOffice of Missouri State
Treasurer |
JEFFERSON CITY – Missouri State Treasurer Sarah Steelman renewed her call today for divestment of terrorist-linked holdings by the Missouri State Employees Retirement System (MOSERS). Her statement comes after the U. S. Treasury’s Office of Comptroller of Currency and the Financial Crimes Enforcement Network announced they had imposed a $24 million fine on the New York Branch of Arab Bank following an investigation into money laundering and financial support of terrorist groups.
Steelman has led the effort to remove Arab Bank and other terrorist-linked investments from MOSERS holdings. For the last five months, Steelman has repeatedly tried to force the sale of Arab Bank stock, but MOSERS staff and a majority of MOSERS board members would not support her position. She said she is hopeful that today’s action by the U. S. government will finally spur MOSERS into selling its holdings in Arab Bank.
“Arab Bank has been fined $24 million by the U. S. government for failing to follow provision of U.S. law that are critical to protecting our financial system from the abuses of money laundering and terrorist financing,” Steelman said. “I simply refuse to stand by and let the hard-earned dollars of the people of Missouri be used to finance our enemies. Again, I call on MOSERS to divest its holdings in Arab Bank and to do so today.
In a joint statement Wednesday, the U. S. Treasury’s Office of Comptroller of Currency and the Financial Crimes Enforcement Network announced they had imposed the fine after both agencies determined Arab Bank violated the Bank Secrecy Act and had failed to manage risks of money laundering and terrorist financing in connection with United States dollar clearing transactions.
“Missouri has no business holding stock in a bank that launders money to terrorists groups or activities,” Steelman said. “I am hopeful that this fine will halt not only the flow of money to terrorist groups, but also help finish our five-month effort to divest Missouri’s stock holdings in Arab Bank.”
On Tuesday, Steelman made a formal written request to the chairman of the MOSERS Board of Trustees to place the divestment of Arab Bank on the agenda for the next board meeting. In July, the board adopted and is in the process of implementing a stronger terrorism investment policy sought by Steelman, but refused to allow her to bring the issue of MOSERS’ holdings in Arab Bank up for a vote because it was not on the agenda.
In June, a motion by Steelman to pull Missouri’s investments out of Arab Bank was defeated in a 5-5 tie vote by the MOSERS board of trustees.
“I am pleased that the MOSERS Board unanimously adopted a stronger terrorism policy that is now being implemented,” Steelman said. “Yet, our tax dollars are still invested in a bank that has repeatedly been sanctioned for ties to terrorism. We can and must stop financing those who are linked to terrorist groups and activities.”
Arab Bank, headquartered in Amman, Jordan, is currently the subject of more than $1 billion in lawsuits brought by the families of terrorist bombing victims. Among the plaintiffs is the family of John Linde Jr., a 10-year Marine Corps veteran from Missouri who was killed in a terrorist bombing attack while guarding diplomats in Gaza.
Yesterday’s fine marks the third time this year that Arab Bank has been sanctioned by the United States government for financial issues involving money laundering and terrorism.
In February, the bank’s New York branch was ordered to stop making international wire transfers. In May, the New York branch of Arab Bank was ordered by the federal government to stop accepting deposits or opening accounts.