New Questions About Saudi Money and Bandar

April 12 issue - A federal investigation into the bank accounts of the Saudi Embassy in Washington has identified more than $27 million in "suspicious" transactions—including hundreds of thousands of dollars paid to Muslim charities, and to clerics and Saudi students who are being scrutinized for possible links to terrorist activity, according to government documents obtained by NEWSWEEK. The probe also has uncovered large wire transfers overseas by the Saudi ambassador to the United States, Prince Bandar bin Sultan. The transactions recently prompted the Saudi Embassy's longtime bank, the Riggs Bank of Washington, D.C., to drop the Saudis as a client after embassy officials were "unable to provide an explanation that was satisfying," says a source familiar with the discussions.


A Saudi spokesman strongly denied that any embassy funds were used to support terrorism and said Bandar chose to pull the embassy's accounts out of Riggs. The Saudis point out that an earlier FBI probe into embassy funds that were moved to alleged associates of the 9/11 hijackers has not led to any charges. The current probe, by the FBI and Treasury Department, is one of the most sensitive financial inquiries now being conducted by the government and is being closely monitored by the White House. The federal commission investigating 9/11 was also recently briefed on developments, sources say. U.S. officials stress that they have identified no evidence of any knowing Saudi aid to terrorist groups. But they express frustration at their inability to penetrate a number of large and seemingly irregular transactions. "There's a lot of money moving in a lot of directions—maybe not all that carefully," said one senior law-enforcement official. "Everyone wants to get to the bottom of it."

http://www.msnbc.msn.com/id/4661093/