Other vulnerable countries receive counter-terrorism-financing  training and technical assistance through other U.S. government programs  as well as through TFWG. U.S. Government Lacks an Integrated Strategy to Coordinate the Delivery of Training and Technical Assistance

Although the U.S. government provides a range of training and technical  assistance to countries it deems vulnerable to terrorist financing, it lacks  an integrated strategy to coordinate the delivery of this assistance. Specifically, the effort lacks key stakeholder acceptance of roles and  practices, a strategic alignment of resources with needs, and a process to  measure results—three elements that previous GAO work has identified as  critical to effective strategic planning within and across agencies. State and Treasury disagree regarding State’s role in coordinating the  training and technical assistance. Treasury, a key stakeholder, asserts that there are  numerous other efforts outside States’ purview and that State’s role is  limited to coordinating, as chair of TFWG, the provision of such assistance  in priority countries. GAO Recommended Actions to Improve Interagency Coordination, and Agencies Are Taking Steps

To ensure that U.S. government interagency efforts to provide counter- terrorism-financing training and technical assistance are integrated,  efficient, and effective, ‘particularly with respect to priority countries, we  recommended in our report that the Secretary of State and the Secretary  of the Treasury, in consultation with NSC and relevant government  agencies, develop and implement an integrated strategic plan for the U.S.  government that    designates leadership and provides for key stakeholder involvement;  includes a systematic and transparent assessment of the allocation of  U.S. government resources;   delineates a method for aligning the resources of relevant U.S. agencies  to support the mission based on key needs and related risks; and   provides processes and resources for measuring and monitoring  results, identifying gaps, and revising strategies accordingly. Treasury Needs Meaningful Performance Measures and Information to Show Results and Progress of Terrorist Asset Blocking

Treasury’s OFAC undertakes a number of activities as part of its efforts to  block terrorist assets. In our report, we recommended that the Secretary of the  Treasury finalize the development of the performance measures as well as  an OFAC-specific strategic plan and provide more complete information in  its annual reports to Congress on terrorist assets blocked. Treasury’s Performance Measures Do Not Assess Results of Terrorist Asset Blocking

At the time of our October 2005 review, Treasury lacked effective  performance measures to assess the results of OFAC’s terrorist asset  blocking efforts or show how these efforts contribute to the department’s  goals of disrupting and dismantling terrorist financial infrastructures and  executing the nation’s financial sanctions policies. In addition, Treasury officials said that  they were developing a strategic plan to guide OFAC’s efforts. According to OFAC officials, as of March 30, 2006, the strategic  plan had not yet been finalized. Treasury Report Does Not Show Progress in Asset Blocking

Treasury’s annual Terrorist Assets Report, which offers a year-end  snapshot of dollar amounts of terrorist assets held in U.S. jurisdiction,  does not provide sufficient information to demonstrate OFAC’s progress in  its terrorist asset blocking efforts. However,  the report does not document or quantify changes from amounts of assets  blocked in previous years. The new performance measures that  OFAC has recently developed may enable Congress and other officials  with oversight responsibilities to ascertain the strengths and weaknesses  of these efforts as well as hold OFAC managers accountable. Matter for Congressional Consideration

In view of congressional interest in U.S. government efforts to deliver  training and technical assistance abroad to combat terrorist financing and  the difficulty of obtaining a systematic assessment of U.S. resources  dedicated to this endeavor, as stated in our report, Congress should  consider requiring the Secretary of State and the Secretary of the Treasury  to submit an annual report to Congress showing the status of interagency  efforts to develop and implement an integrated strategic plan and  Memorandum of Agreement to ensure TFWG’s seamless functioning,  particularly with respect to TFWG roles and procedures. Appendix I: Terrorist Finance Working Group (TFWG) Membership and Program Development Process

According to the Department of State (State), the Terrorist Finance  Working Group (TFWG) was convened in October 2001 to develop and  provide counter-terrorism-financing training to countries deemed most  vulnerable to terrorist financing. 2. 3.
Why GAO Did This Study

Disrupting terrorists' financing is necessary to impede their ability to organize, recruit, train, and equip adherents. U.S. efforts to strengthen domestic and global security include, among others, the provision of training and technical assistance in countering terrorist financing abroad. An interagency Terrorist Financing Working Group (TFWG), chaired by the U.S. Department of State (State), coordinates the delivery of this training and technical assistance to "priority" countries--those considered most vulnerable to terrorist financing schemes--as well as to other vulnerable countries. In addition, the Department of the Treasury (Treasury) Office of Foreign Assets Control (OFAC) leads U.S. efforts to block access to designated terrorists' assets that are subject to U.S. jurisdiction. In response to multiple congressional requesters, GAO examined U.S. efforts to combat terrorist financing abroad, publishing the report in October 2005. In this testimony, GAO discusses the report's findings about challenges related to (1) TFWG's coordination of the counter-terrorism-financing training and technical assistance abroad and (2) Treasury's measurement of results and provision of information needed to assess OFAC's efforts to block terrorist assets.

What GAO Found

Under State's leadership, TFWG has coordinated the interagency delivery of counter-terrorism-financing training and technical assistance--for example, providing training and placing resident advisors--in more than 20 priority countries as well as other vulnerable countries. However, TFWG's effort has been hampered by the absence of a strategic and integrated plan. GAO found that the effort lacks three elements that are critical to strategic planning for operations within and across agencies: (1) Key stakeholder acceptance of roles and practices; (2) strategic alignment of resources with countries' needs and risks; and (3) a process to measurement the effort's results For example, two key TFWG stakeholders, State and Treasury, disagree about the extent of State's leadership as chair of TFWG. GAO recommended that State and Treasury, with other government agencies, implement an integrated strategic plan that addresses these challenges and sign a Memorandum of Agreement to improve coordination of counter-terrorism-financing training and technical assistance abroad. State and Treasury responded that they are taking several steps to improve the interagency process, but they did not address all of GAO's recommendations. OFAC undertakes a number of efforts related to the blocking of terrorists' assets. For example, OFAC compiles evidence as a basis for designating terrorist groups and individuals. However, GAO found limitations regarding Treasury's measurement of results and provision of information about FAC's efforts. Inadequate measures. At the time of GAO's review, Treasury lacked adequate measures to assess the results of OFAC's efforts. OFAC was in the process of developing new measures, which it recently completed. Although GAO has not reviewed them, these measures may enable officials overseeing OFAC to ascertain the strengths and weaknesses of its efforts as well as hold OFAC managers accountable. GAO recommended that, in addition, Treasury develop an OFAC-specific strategic plan that describes, among other things, how its performance measures relate to general program goals and objectives. As of March 30, Treasury had not yet finalized the strategic plan. Insufficient information. Treasury's yearly report to Congress on terrorist assets blocked does not provide sufficient information for Congress to assess OFAC's progress. For instance, the report shows the total dollar value of blocked terrorist assets held under U.S. jurisdictions but does not show changes from amounts of assets blocked in previous years. GAO recommended that Treasury provide information on such changes, along with other key performance metrics, in its annual Terrorist Assets Report. Treasury responded that it would discuss with Congress recrafting the report to address congressional interests.