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Countering the Plunder and Sale of Priceless Cultural Antiquities by Isis

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Countering the Plunder and Sale of Priceless Cultural Antiquities by Isis PREVENTING CULTURAL GENOCIDE: COUNTERING THE PLUNDER AND SALE OF PRICELESS CULTURAL ANTIQUITIES BY ISIS HEARING BEFORE THE TASK FORCE TO INVESTIGATE TERRORISM FINANCING OF THE COMMITTEE ON FINANCIAL SERVICES U.S. HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS SECOND SESSION APRIL 19, 2016 Printed for the use of the Committee on Financial Services Serial No. 114–83 ( U.S. GOVERNMENT PUBLISHING OFFICE 23–891 PDF WASHINGTON : 2017 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 K:\DOCS\23891.TXT TERI HOUSE COMMITTEE ON FINANCIAL SERVICES JEB HENSARLING, Texas, Chairman PATRICK T. MCHENRY, North Carolina, MAXINE WATERS, California, Ranking Vice Chairman Member PETER T. KING, New York CAROLYN B. MALONEY, New York EDWARD R. ROYCE, California NYDIA M. VELA´ ZQUEZ, New York FRANK D. LUCAS, Oklahoma BRAD SHERMAN, California SCOTT GARRETT, New Jersey GREGORY W. MEEKS, New York RANDY NEUGEBAUER, Texas MICHAEL E. CAPUANO, Massachusetts STEVAN PEARCE, New Mexico RUBE´ N HINOJOSA, Texas BILL POSEY, Florida WM. LACY CLAY, Missouri MICHAEL G. FITZPATRICK, Pennsylvania STEPHEN F. LYNCH, Massachusetts LYNN A. WESTMORELAND, Georgia DAVID SCOTT, Georgia BLAINE LUETKEMEYER, Missouri AL GREEN, Texas BILL HUIZENGA, Michigan EMANUEL CLEAVER, Missouri SEAN P. DUFFY, Wisconsin GWEN MOORE, Wisconsin ROBERT HURT, Virginia KEITH ELLISON, Minnesota STEVE STIVERS, Ohio ED PERLMUTTER, Colorado STEPHEN LEE FINCHER, Tennessee JAMES A. HIMES, Connecticut MARLIN A. STUTZMAN, Indiana JOHN C. CARNEY, JR., Delaware MICK MULVANEY, South Carolina TERRI A. SEWELL, Alabama RANDY HULTGREN, Illinois BILL FOSTER, Illinois DENNIS A. ROSS, Florida DANIEL T. KILDEE, Michigan ROBERT PITTENGER, North Carolina PATRICK MURPHY, Florida ANN WAGNER, Missouri JOHN K. DELANEY, Maryland ANDY BARR, Kentucky KYRSTEN SINEMA, Arizona KEITH J. ROTHFUS, Pennsylvania JOYCE BEATTY, Ohio LUKE MESSER, Indiana DENNY HECK, Washington DAVID SCHWEIKERT, Arizona JUAN VARGAS, California FRANK GUINTA, New Hampshire SCOTT TIPTON, Colorado ROGER WILLIAMS, Texas BRUCE POLIQUIN, Maine MIA LOVE, Utah FRENCH HILL, Arkansas TOM EMMER, Minnesota SHANNON MCGAHN, Staff Director JAMES H. CLINGER, Chief Counsel (II) VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 K:\DOCS\23891.TXT TERI TASK FORCE TO INVESTIGATE TERRORISM FINANCING MICHAEL G. FITZPATRICK, Pennsylvania, Chairman ROBERT PITTENGER, North Carolina, Vice STEPHEN F. LYNCH, Massachusetts, Chairman Ranking Member PETER T. KING, New York BRAD SHERMAN, California STEVE STIVERS, Ohio GREGORY W. MEEKS, New York DENNIS A. ROSS, Florida AL GREEN, Texas ANN WAGNER, Missouri KEITH ELLISON, Minnesota ANDY BARR, Kentucky JAMES A. HIMES, Connecticut KEITH J. ROTHFUS, Pennsylvania BILL FOSTER, Illinois DAVID SCHWEIKERT, Arizona DANIEL T. KILDEE, Michigan ROGER WILLIAMS, Texas KYRSTEN SINEMA, Arizona BRUCE POLIQUIN, Maine FRENCH HILL, Arkansas (III) VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 K:\DOCS\23891.TXT TERI VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 K:\DOCS\23891.TXT TERI C O N T E N T S Page Hearing held on: April 19, 2016 ................................................................................................... 1 Appendix: April 19, 2016 ................................................................................................... 41 WITNESSES TUESDAY, APRIL 19, 2016 Al-Azm, Amr, Associate Professor, Shawnee State University ............................ 11 Edsel, Robert M., Founder and Chairman, Monuments Men Foundation for the Preservation of Art ........................................................................................ 6 Fanusie, Yaya J., Director of Analysis, Center on Sanctions and Illicit Fi- nance, Foundation for Defense of Democracies ................................................. 7 Gerstenblith, Patty, Distinguished Research Professor, DePaul University College of Law ...................................................................................................... 9 Shindell, Lawrence M., Executive Chairman, ARIS Title Insurance Corpora- tion ........................................................................................................................ 13 APPENDIX Prepared statements: Waters, Hon. Maxine ........................................................................................ 42 Al-Azm, Amr ..................................................................................................... 47 Edsel, Robert M. ............................................................................................... 63 Fanusie, Yaya J. ............................................................................................... 71 Gerstenblith, Patty ........................................................................................... 82 Shindell, Lawrence M. ..................................................................................... 96 ADDITIONAL MATERIAL SUBMITTED FOR THE RECORD Waters, Hon. Maxine: Written responses to questions for the record submitted to Yaya J. Fanusie .......................................................................................................... 112 Written responses to questions for the record submitted to Lawrence M. Shindell .................................................................................................... 116 (V) VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 K:\DOCS\23891.TXT TERI VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 K:\DOCS\23891.TXT TERI PREVENTING CULTURAL GENOCIDE: COUNTERING THE PLUNDER AND SALE OF PRICELESS CULTURAL ANTIQUITIES BY ISIS Tuesday, April 19, 2016 U.S. HOUSE OF REPRESENTATIVES, TASK FORCE TO INVESTIGATE TERRORISM FINANCING, COMMITTEE ON FINANCIAL SERVICES, Washington, D.C. The task force met, pursuant to notice, at 10:10 a.m., in room 2128, Rayburn House Office Building, Hon. Michael G. Fitzpatrick [chairman of the task force] presiding. Members present: Representatives Fitzpatrick, Pittenger, Stivers, Ross, Wagner, Barr, Rothfus, Schweikert, Williams, Poliquin, Hill; Lynch, Himes, Foster, Kildee, and Sinema. Ex officio present: Representative Hensarling. Also present: Representative Royce. Chairman FITZPATRICK. The Task Force to Investigate Terrorism Financing will come to order. The title of today’s task force hearing is, ‘‘Preventing Cultural Genocide: Countering the Plunder and Sale of Priceless Cultural Antiquities by ISIS.’’ Without objection, the Chair is authorized to declare a recess of the task force at any time. Also, without objection, members of the full Financial Services Committee who are not members of the task force may participate in today’s hearing for the purposes of making an opening statement and questioning the witnesses. The Chair now recognizes himself for 3 minutes for an opening statement. I want to thank everyone for joining us today for the eighth hear- ing of the House Financial Services Committee’s Task Force to In- vestigate Terrorism Financing. I would again like to thank Chair- man Hensarling and Ranking Member Waters, as well as my col- leagues here, for their unwavering support as we continue to inves- tigate the threat of terror finance. Since it has surfaced, ISIS has remained substantially different than many terror organizations in its ability to self-finance due to its diversified revenue streams, pulling in funds from ransoms to oil production. One of the most discussed methods has been the ex- ploitation of art and antiquities from Syria and Iraq. While not as lucrative as oil or extortion, Iraqi officials believe that ISIS could (1) VerDate Nov 24 2008 17:07 Aug 14, 2017 Jkt 023891 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 K:\DOCS\23891.TXT TERI 2 be generating as much as $100 million from the sale and traf- ficking of antiquities alone. Recent events have attributed this illicit practice exclusively to IS, but make no mistake: The plunder of art and antiquities has regularly been utilized by transnational groups operating around the world. It has been estimated that the profit of the traffic and sale of these cultural properties may range anywhere from $3.4 bil- lion and $6.3 billion annually. This crime has and will continue to be a global problem, which requires a coordinated international effort to combat. Furthermore, this issue hits close to home. The FBI has credible reports that U.S. persons have been offered cultural property that has appeared to have been removed from Syria. The United States must do its part in curbing the demand for these cultural and artistic pieces by taking another look at cus- tomer due diligence and improving coordination with our inter- national partners. This is a revenue stream exploited by illicit ac- tors around the world, and it cannot continue unabated. I believe that today’s hearing, with the expert panel of witnesses, will help illustrate the scale and severity of this issue as well as offer measures to best combat and diminish this despicable prac- tice. At this time, I would like to recognize this task force’s ranking member, my colleague, Mr. Lynch from Massachusetts, for 4 min- utes. Mr. LYNCH. Thank you, Mr. Chairman. I also want
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