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Yemen: Involvement of honey manufacturers or dealers in fund-raising or money laundering on behalf of groups engaged in terrorism (1980-November 2001)

According to The New York Times, authorities in the United States possess evidence indicating that Al Qaida (also known as Al Qaeda, al Qa'ida), a group allegedly involved in attacks on New York and Washington on 11 September 2001, is "using a network of shops that sell honey ... to generate income and secretely move weapons, drugs and agents" (11 Oct. 2001). While honey stores allegedly controlled by Al Qaida are located "throughout the Middle East as well as Pakistan," Yemen is reportedly a "key location" for such businesses (ibid.). An unidentified United States government official interviewed by The New York Times claimed that "honey ranks as one of Al Qaeda's most important business operations" (ibid.). The official added that the "smell and consistency" of honey makes it an attractive medium in which to hide contraband (ibid.).

Unidentified United States government officials cited by The New York Times claimed that "customs agents in the Middle East had within the last year or two confiscated guns that were hidden in bulk shipments of honey" (ibid.). In October 2001, Ali Alfatimi and Basam Nahshal were arrested and detained by the United States Customs Service at John F. Kennedy Airport in New York City, following the discovery of "more than $100,000 [CDN$159,950] in cash aboard airlines in boxes containing honey destined for Yemen" (The Washington Post 20 Oct. 2001; CNN 1 Nov. 2001).

Furthermore, a "recent" study undertaken by two Florida International University professors found evidence of

a series of sharp price discrepancies in some shipments of U.S. honey to several countries in the Middle East, including Yemen. Though the "abnormal pricing" does not necessarily indicate money laundering, said John Zdanowicz, one of the professors, the information could provide leads for further investigation (ibid.).

The New York Times claimed that Osama Bin Laden, leader of Al Qaida, "may initially have been introduced to the utility of honey in Sudan, where he lived and operated from 1991 until his expulsion in 1996" (ibid.). During the trial of individuals charged with involvement in the bombing of United States embassies in Africa in 1998, witnesses claimed that Bin Laden controlled a Sudan-based firm known as International al-Ikhlar Company (AP 19 Sept. 2001; International Policy Institute for Counter-terrorism 21 Sept. 2001; The New York Times 11 Oct. 2001), which made honey in a factory located in the Sudanese town of Kameen (ibid.). Additionally, at least two newspaper reports claimed that Egyptian Islamic Jihad, an armed group allegedly led by Bin Laden deputy Ayman Al-Zawashiri, was "known" to have used the honey industry as a front for fundraising purposes (ibid.; The Guardian 13 Oct. 2001).

On 12 October 2001, the United States government placed three Yemen-based firms involved in the honey industry on a list of individuals and groups allegedly linked to terrorist activities (CNN 8 Nov. 2001 Reuters 14 Oct. 2001).

The first company, based in Sana'a and known variously as Al-Nur Honey Press Shops or Al-Nur Honey Centre (The Guardian 13 Oct. 2001; Reuters 14 Oct. 2001; Le Monde 4 Nov. 2001), engages in the sale of Arabic perfumes and raisins as well as honey (Reuters 14 Oct. 2001). The firm is reportedly owned by Muhammad al-Hamati, also known as Muhammad Hamdi Sadiq, Al-Ahdal, Abu Asim or Al-Makki, an individual who also appears on the American government's 12 October 2001 list of persons and organizations allegedly implicated in terrorist activities (The Guardian 13 Oct. 2001). According to The New York Times, Al-Hamati fought in Afghanistan and Bosnia, and was detained in Saudi Arabia in 1998 "for planning terrorist activities," and subsequently deported from that country in 1999 following his release from prison (11 Oct. 2001).

The second company on the United States' list, known variously as Al-Hamati Sweets Bakeries (The Guardian 13 Oct. 2001; Reuters 14 Oct. 2001) or Al-Hamati Sweets and Bakeries (Al-Ahram 18-24 Oct. 2001), is also reportedly owned by Al-Hamati, who is described by the Cairo newspaper Al-Ahram as a "Yemeni businessman" (ibid.). The firm is based in the southern port city of Al-Makallah (Reuters 14 Oct. 2001).

The third Yemeni company on the American government's list, known variously as Al-Shifa Honey Press for Industry and Commerce (The Guardian 13 Oct. 2001) or Al-Shifa & Kingdom of Yemeni Honey (Reuters 14 Oct. 2001), has offices in "several" Yemeni cities (ibid.), including Sana'a, Ta'iz and Aden, as well as in Doha, Qatar (The Guardian 13 Oct. 2001). Furthermore, The Christian Science Monitor claimed that the firm has a "sister company" located in Peshawar, Pakistan, which is also called "Al-Shifa Honey" (23 Oct. 2001). Besides dealing in honey, Al-Shifa Honey Press for Industry and Commerce is also reportedly involved in the sale of vegetable oil and perfume (Al-Ahram 18-24 Oct. 2001). A number of articles identified the company's owner as Mahmud Abu al-Fatuh Muhammad (The Christian Science Monitor 23 Oct. 2001; Philly Burbs 18 Oct. 2001), a Yemeni citizen allegedly linked to the Milan-based Islamic Cultural Institute (ibid.; The Christian Science Monitor 23 Oct. 2001), However, Muhammad Saleh al-Ashmuri was cited in an AP report as saying that he was the owner of the firm (15 Oct. 2001).

While Yemeni authorities announced on 13 October 2001 that they had begun investigating the three firms accused by the United States of involvement in terrorist activities (Reuters 14 Oct. 2001), company employees and managers of these companies denied any wrongdoing (ibid.; Yemen Times 15-21 Oct. 2001; AP 15 Oct. 2001). For example, Mohammed Saleh Al-Ashmori, whom the Yemen Times described as the "director general" of Al-Shifa Shops for Yemeni Honey, was cited as saying that the accusations were "mostly fabricated by persons attempting to harm the reputation of Yemeni honey and Yemeni investors in general" (15-21 Oct. 2001). No information on the current status of the Yemeni authorities' investigation could be found among the sources consulted by the Research Directorate.

Other individuals with a background in the honey industry who have been accused of involvement in terrorist activities include a Syrian man (AFP 27 Oct. 2001) and a Yemeni-born Bosnian citizen (Al-Sharq al-Awsat 11 Nov. 2000). In the first case, Hassan Almrei, a Syrian granted refugee status in Canada, had reportedly "operated a honey business to raise funds" for Osama Bin Laden, but the location was not specified in the news report (AFP 27 Oct. 2001). In the second case, an unidentified Bosnian citizen who had reportedly been living in Kuwait for five years was deported from that country in November 2000 after being accused of involvement in a "sabotage group" (Al-Sharq al-Awsat 11 Nov. 2000). A Bin Laden aide was also reportedly a member of this group (ibid.). The Bosnian citizen had reportedly owned a "honey trade shop" in Kuwait (ibid.).

This Response was prepared after researching publicly accessible information currently available to the Research Directorate within time constraints. This Response is not, and does not purport to be, conclusive as to the merit of any particular claim to refugee status or asylum.

References

Agence France Presse (AFP). 27 October 2001. "Ottawa Seeks to Deport Man Believed to Have Links with Bin Ladin." (FBIS-LAT-2001-1027 27 Oct. 2001/WNC)

Al-Ahram [Cairo]. 18-24 October 2001. Nasser Arrabyee. "A Sweet Disguise? " <http://www.ahram.org.eg/weekly/2001/556/10war4.htm> [Accessed 23 Nov. 2001]

Al-Sharq al-Awsat [London, in Arabic]. 11 Nov. 2000. "Kuwait Deports 2 for Planned Anti-US Attacks." (FBIS-EEU-2000-1111 11 Nov. 2000/WNC)

Associated Press (AP). 15 Oct. 2001. Yemen Investigates its Honey Shops Following Allegations of Ties to bin Laden." <http://vigil.usermagnet.com/r/2-118,282-103,18150515> [Accessed 22 Nov. 2001]

_____. 19 September 2001. Sharon Theimer. "Like Terror Network, bin Laden's Money Trail Reaches Around the Globe." <http://www.globalexchange.org/september11/ap091901.html> [Accessed 22 Nov. 2001]

Cable News Network (CNN). 8 November 2001. "Investigators Piece Together bin Laden's Money Trail." <http://www.cnn.com/> [Accessed 22 Nov. 2001]

_____. 1 November 2001. Manuel Perez-Rivas. "Terrorists' Money Trail Probe Relies on Familiar Tactics." <http://www.cnn.com/> [Accessed 22 Nov. 2001]

The Christian Science Monitor [Boston]. 23 October 2001. Philip Smucker. "Out of Honey Business, bin Laden Still Profits." <http://www.csmonitor.com/> [Accessed 22 Nov. 2001]

The Guardian [London]. Audrey Gillan. 13 October 2001. "Assets of 39 More Individuals and Organisations are Frozen." <http://www.guardian.co.uk/> [Accessed 22 Nov. 2001]

International Policy Institute for Counter-Terrorism (ICT). 21 September 2001. "Tracing bin Laden's Money: Easier Said than Done." <http://www.ict.org.il/articles/articledet.cfm?articleid=387> [Accessed 22 Nov. 2001]

Le Monde [Paris, in French]. 4 November 2001. "Paris Daily Reporter on Status of Present Investigation into Al-Qa'ida Funding Network." (FBIS-NES-2001-1112 4 Nov. 2001)

The New York Times. 11 October 2001. Judith Miller and Jeff Gerth. "Al Qaeda Trade in Honey is Said to Provide Money and Cover for bin Laden." <http://www.mapinc.org/drugnews/v01/n1761/a03.html?397> [Accessed 22 Nov. 2001]

Philly Burbs. 18 October 2001. David E. Kalish. "Honey Businesses Used in Terror Net." <http://www.phillyburbs.com/terror/news/1018arhoney.htm> [Accessed 22 Nov. 2001]

Reuters. 14 October 2001. Mohammad Sudam. "Yemen Honey Firm Workers Dismiss Terrorism Link." <http://www.intellnet.org/news/2001/10/14/7626-1.html> [Accessed 22 Nov. 2001]

The Washington Post. 20 October 2001. "2 Charged with Smuggling Cash in Yemen." <http://www.washingtonpost.com/> [Accessed 22 Nov. 2001]

Yemen Times [Sana'a]. 15-21 October 2001. "Al-Shifa Denies Links with Bin Laden." <http://www.yementimes.com/01/iss42/front.htm> [Accessed 22 Nov. 2001]

Topics: Terrorism,