Clinton Saudi Arabia 311.
(photo credit: Associated Press)
CAIRO — Saudi Arabia made "important progress" in aggressively trying to curtail the flow of funds to terrorist groups, but the oil rich kingdom and its Gulf Arab neighbors still remain major sources of financing for militant movements like al-Qaida and the Taliban, according to leaked US government documents.
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The findings, detailed in a series of internal US diplomatic cables spanning a period of several years, painted a stark picture of Washington's challenges in convincing key allies of the need to clamp down on terror funding, much of which is believed to stem from private donors in those nations.
But the cables, obtained and released by WikiLeaks, also offer a window into the delicate balancing act Gulf governments must perform in cracking down on extremist sympathizers while not running afoul of religious charitable duties and casting themselves as US stooges before an increasingly skeptical populace.
"While the Kingdom of Saudi Arabia (KSA) takes seriously the threat of terrorism within Saudi Arabia, it has been an ongoing challenge to persuade Saudi officials to treat terrorist financing emanating from Saudi Arabia as a strategic priority," reads a December 2009 memo from Secretary of State Hillary Rodham Clinton.
The cable said that while the kingdom has begun to "make important progress on this front, ... donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide."
Many of the criticisms and observations made in the US documents rehash — albeit more directly — previously stated American concerns.
In July 2009, US President Barack Obama's special representative to Afghanistan and Pakistan, Richard Holbrooke, said that the Taliban get more of their funding from wealthy Gulf donors than from the drug trade for which Afghanistan has long been famous.
Similarly, officials have complained of direct donations by wealthy individuals, particularly during religious months such as Ramadan, or during the hajj. Compounding that issue has been the difficulty and reluctance to monitor charities, as well as the abundant informal money transfer networks called hawala, or worker remittances.
Despite the concerns, Saudi Arabia emerges in the leaked cables as the most committed of the Gulf nations to working with the US to stem terror financing.
A February memo from the US Embassy in Riyadh said Saudi Arabia has "made important progress in combating al-Qaida financing emanating from the country." It said reporting "indicates that al-Qaida's ability to raise funds has deteriorated substantially, and that it is now in its weakest state" since the Sept. 11 attacks.
The cable said, however, that Saudi Arabia's Interior Ministry "remains almost completely dependent on the CIA." As a result, it said "our success against terrorist financing in the kingdom remains directly tied to our ability to provide actionable intelligence to our Saudi counterparts."Gulf states get harsh reviews from US State Department
Other Gulf nations garner even harsher reviews — conclusions reached in cables that carry a markedly different tone than that adopted by Washington for public consumption when dealing with some of its closest regional allies.
In Clinton's cable, Kuwait is seen as willing to take action against networks that threaten the country, but "less inclined to take action against Kuwait-based financiers and facilitators plotting attacks outside of Kuwait."
As a result, the country is described as a "key transit point" that lacks the regulatory framework needed to monitor such activity and a government that is hamstrung by political infighting.
At the time the cable was written, Kuwait was still grappling with fallout from the global financial meltdown. It was unlikely that the government, in the midst of that financial crisis, was willing to open new battles with an already emboldened parliament.
The United Arab Emirates is called to task largely for the same factors
that made it famous. One cable says the seven-state federation's "role
as a growing global financial center, coupled with weak regulatory
oversight, makes it vulnerable to abuse by terrorist financiers and
US officials have also long maintained that the UAE has been a haven for
corrupt Afghani officials looking to hide funds in its banks.
Qatar, a tiny gas-rich nation, is seen as "hesitant to take on known
terrorists out of concern for appearing to be aligned with the US and
But the documents, whose release has been blasted by the US and a slew
of other states, offer a window into the reasons why these governments
are reluctant to act with the level of zeal the US would like to see.
The cable note that the annual Muslim pilgrimage in Saudi Arabia, or the
holy month of Ramadan, are fertile times for fundraising, and that
monitoring and regulation of the charities is lacking.
But Gulf governments, already maligned by al-Qaida and other militant
groups as US lackeys, are likely to be unwilling to be seen as
interfering with a Muslim's religious obligation to provide alms for the
needy. The argument, ostensibly, is that individuals may often not be
aware that they are providing funding to a group that fronts for a