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Holy Land Foundation for Relief and Development: Criminalizing Support for Non-Designated Charities

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Holy Land Foundation for Relief and Development: Criminalizing Support for Non-Designated Charities Blocking Faith, Freezing Charity CHILLING MUSLIM CHARITABLE GIVING in the “WAR ON TERRORISM FINANCING” Blocking Faith, Freezing Charity: Chilling Muslim Charitable Giving in the “War on Terrorism Financing” PUBLISHED: June 2009 FRONT COVER PHOTOGRAPH: Alex Wong/Getty Images Members of a Muslim congregation in Virginia give Zakat donations for the needy before they enter a mosque for a service to mark the conclusion of the holy month of Ramadan, the height of annual Muslim charitable giving. Zakat is one of the core “five pillars” of Islam and a religious obligation for all observant Muslims. BACK COVER PHOTOGRAPHS: LEFT: Brandon Dill/Memphis Commercial Appeal RIGHT: LIFE for Relief and Development THE AMERICAN CIVIL LIBERTIES UNION is the nation’s premier guardian of liberty, working daily in courts, legislatures and communities to defend and preserve the individual rights and freedoms guaranteed by the Constitution, the laws and treaties of the United States. OFFICERS AND DIRECTORS Susan N. Herman, President Anthony D. Romero, Executive Director Richard Zacks, Treasurer ACLU NATIONAL OFFICE 125 Broad Street, 18th Fl. New York, NY 10004-2400 (212) 549-2500 www.aclu.org Contents I. EXECUTIVE SUMMARY AND INTRODUCTION ................................................................................ 7 a. Introduction .............................................................................................................................7 b. Executive Summary .................................................................................................................9 c. Recommendations ................................................................................................................17 II. METHODOLOGY .......................................................................................................................... 25 III. LEGAL FRAMEWORK ................................................................................................................. 27 a. Antiterrorism and Effective Death Penalty Act (AEDPA) ......................................................28 b. Expansion of Prohibited Material Support ............................................................................29 c. International Emergency Economic Powers Act (IEEPA) and Executive Order 13224 ....................................................................................................33 d. OFAC’s Anti-Terrorist Financing Guidelines / Voluntary Best Practices for U.S.-Based Charities .............................................................35 IV. LACK OF DUE PROCESS TO PROTECT AGAINST MISTAKE AND ABUSE ...................................... 39 a. Denial of Due Process in Blocking Assets Pending Designation .........................................39 i. Case Study: KindHearts for Charitable Humanitarian Development: Assets Frozen for Over Three Years, But Never Designated .................................................42 b. Denial of Due Process in Designation of Charities ...............................................................43 c. Limited Judicial Review for Designations .............................................................................44 d. Flaws in Evidence Used in Designation ................................................................................46 e. Poor Record in Material Support Prosecutions ....................................................................50 i. Case Study: Global Relief Foundation: Use of Immigration Charges in Absence of Evidence to Indict ...............................................52 f. Public Naming of Unindicted Co-conspirators .....................................................................53 g. Charities Held Liable for Damages in Unrelated Foreign Terrorism Lawsuits....................55 V. DISCRIMINATORY ENFORCEMENT OF COUNTERTERRORISM LAWS AGAINST AMERICAN MUSLIM CHARITIES .................................................................................. 59 a. Discriminatory Enforcement against American Muslim Charities ......................................60 i. Case Study: Holy Land Foundation for Relief and Development: Criminalizing Support for Non-Designated Charities .............................................................61 b. Disruptive Investigation or Public Raid of American Muslim Charities ...............................64 VI. INTIMIDATION OF MUSLIM DONORS BY LAW ENFORCEMENT .................................................. 69 a. Law Enforcement Interviews of Muslim Donors...................................................................69 b. Arrests, Prosecutions, and Public Smearing of Muslim Donors..........................................73 c. Surveillance of Donations at Mosques ..................................................................................75 d. Government Refusal to Reassure Donors ............................................................................78 VII. CHARITABLE GIVING IN ISLAM ................................................................................................. 83 a. Zakat as a Religious Obligation to Tithe ...............................................................................83 b. Preferred Recipients of Zakat as Defined in Islam ...............................................................86 VIII. CHILLING EFFECT ON MUSLIM CHARITABLE GIVING AND IMPACT ON RELIGIOUS FREEDOM................................................................................... 89 a. Chilling Effect on Charitable Giving (Zakat) Due to Climate of Fear ....................................89 i. Fear of Criminal Liability for Donations to Legal Charities ..............................................93 1. Case Study: The Story of Samir S. .................................................................................95 ii. Fear of Interview by Law Enforcement .............................................................................97 iii. Fear of Immigration Consequences of Donating ..........................................................100 b. Inability to Donate Zakat to Preferred Recipients in Accordance with Religious Beliefs .................................................................................101 c. Non-Muslim Charities Not an Adequate Option .................................................................105 d. Religious Rights Violations Due to Continued Sequestering of Charities’ Funds ..............107 IX. CHILLING EFFECT ON ASSOCIATION WITH MUSLIM COMMUNITY AND RELIGIOUS ORGANIZATIONS ...................................................................... 111 a. Limitations on Freedom of Association Due to Climate of Fear .........................................111 X. COLLATERAL CONSEQUENCES UNDERMINE COUNTERTERRORISM EFFORTS ........................ 117 a. Alienation of Muslim Americans .........................................................................................118 b. Undermining U.S. Reputation and Diplomatic Efforts in Muslim Countries ......................120 c. Proportionate Rise in Cash Donations ................................................................................122 d. Chilling Effect on Overseas Humanitarian Relief Efforts ...................................................124 XI. INTERNATIONAL HUMAN RIGHTS AND CONSTITUTIONAL LEGAL STANDARDS ...................... 131 a. Religious Freedom ..............................................................................................................131 b. Non-Discrimination .............................................................................................................134 c. Freedom of Association and Assembly ...............................................................................135 d. International Law on Counterterrorism Measures ............................................................136 XII. ACKNOWLEDGMENTS ............................................................................................................ 139 XIII. ENDNOTES ............................................................................................................................. 141 Glossary ACHR: American Convention on Human Rights ADC: American-Arab Anti-Discrimination Committee AEDPA: Antiterrorism and Effective Death Penalty Act AHIF: Al Haramain Islamic Foundation-USA APA: Administrative Procedures Act BIF: Benevolence International Foundation CAIR: Coalition on American-Islamic Relations CERD: International Convention on the Elimination of All Forms of Racial Discrimination FBI: Federal Bureau of Investigation FISA: Foreign Intelligence Surveillance Act FTO: Foreign Terrorist Organization GAO: Government Accountability Office GCO: Goodwill Charitable Organization GRF: Global Relief Foundation HLF: Holy Land Foundation for Relief and Development IARA: Islamic American Relief Agency-USA ICCPR: International Covenant on Civil and Political Rights ICRC: International Committee of the Red Cross IEEPA: International Emergency Economic Powers Act INA: Immigration and Nationality Act IRS: Internal Revenue Service IRTPA: Intelligence Reform and Terrorism Prevention Act ISNA: Islamic Society of North America JTTF: Department of Justice Joint Terrorism Task Force LIFE: Life for Relief and Development LTTE: Liberation Tigers of Tamil Eelam MPAC: Muslim Public Affairs Council NAIT: North American Islamic Trust NGO: Non-governmental organization OFAC: Department of Treasury Office of Foreign Assets Control OIG: Department of Justice Office of the Inspector General PKK: Kurdistan
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