In 2007, the U.S. Department of State reported that, "Saudi donors and unregulated charities have been a major source of financing to extremist and terrorist groups over the past 25 years." Official U.S. government concerns about this trend were apparent prior to the September 11, 2001 terrorist attacks, which amplified public criticism within the United States of alleged Saudi involvement in terrorism or of Saudi laxity in acting against terrorist groups. The final report released by the bipartisan National Commission on Terrorist Attacks Upon the United States (the 9/11 Commission) indicates that the Commission "found no evidence that the Saudi government as an institution or senior Saudi officials individually funded [Al Qaeda]." In April 2008, Undersecretary of the Treasury for Terrorism and Financial Intelligence Stuart Levey told the Senate Finance Committee that the Saudi government is "serious about fighting Al Qaeda in the kingdom, and they do," and argued that Saudi officials' "seriousness of purpose with respect to the money going out of the kingdom is not as high." He added, "Saudi Arabia today remains the location from which more money is going to... Sunni terror groups and the Taliban than from any other place in the world." The report also states, however, that Saudi Arabia "was a place where Al Qaeda raised money directly from individuals and through charities," and indicates that "charities with significant Saudi government sponsorship," such as the Al Haramain Islamic Foundation, may have diverted funding to Al Qaeda. The Saudi government has not officially described Hamas as a terrorist organization. Saudi Counter-Terrorism Efforts

		Post-September 11 Actions

Saudi officials maintain that they are working closely with the United States to combat terrorism, which they say is aimed as much at the Saudi regime as it is at the United States. U.S. officials traveled to Riyadh later that month to set up a joint task force to investigate terrorist financing in Saudi Arabia. However, several prominent Saudi individuals suspected by U.S. authorities of involvement in terrorist financing have not been charged or prosecuted in the United States, Saudi Arabia, or other jurisdictions. These individuals are believed to be in Saudi Arabia. The U.S. State Department has stated that "Saudi Arabia should demonstrate its willingness to hold elites accountable" for money laundering and terrorist financing related offenses. The Intelligence Reform and Terrorism Prevention Act ( P.L. 108-458 ) required the President to submit to Congress within 180 days a strategy for collaboration with the people and government of Saudi Arabia, including a framework for cooperation on efforts to combat terrorist financing. In the 110 th Congress, Section 2043 of the Implementing Recommendations of the 9/11 Commission Act ( P.L.
According to the U.S. State Department 2007 International Narcotics Control Strategy Report, "Saudi donors and unregulated charities have been a major source of financing to extremist and terrorist groups over the past 25 years." The September 11, 2001 attacks fueled criticisms within the United States of alleged Saudi involvement in terrorism or of Saudi laxity in acting against terrorist groups. The final report released by the bipartisan National Commission on Terrorist Attacks Upon the United States (the 9/11 Commission) indicates that the Commission "found no evidence that the Saudi government as an institution or senior Saudi officials individually funded [Al Qaeda]." The report also states, however, that Saudi Arabia "was a place where Al Qaeda raised money directly from individuals and through charities" and indicates that "charities with significant Saudi government sponsorship" may have diverted funding to Al Qaeda.
U.S. officials remain concerned that Saudis continue to fund Al Qaeda and other terrorist groups. In April 2008, Undersecretary of the Treasury for Terrorism and Financial Intelligence Stuart Levey told the Senate Finance Committee that the Saudi government is "serious about fighting Al Qaeda in the kingdom, and they do," and argued that Saudi officials' "seriousness of purpose with respect to the money going out of the kingdom is not as high." He added, "Saudi Arabia today remains the location from which more money is going to terror groups and the Taliban—Sunni terror groups and the Taliban—than from any other place in the world."
Saudi officials insist that their counter-terrorist financing efforts are robust and are not limited to targeting domestic threats. In numerous official statements, Saudi leaders have said they are committed to cooperating with the United States in fighting terrorist financing, pointing out that Saudi Arabia has been a victim of terrorism and shares the U.S. interest in combating it. Saudi leaders acknowledge providing financial support for Islamic and Palestinian causes, but maintain that no official Saudi support goes to any terrorist organizations, such as Hamas.
Al Qaeda affiliated terrorist attacks in Saudi Arabia from 2003 to 2006 appear to have given added impetus to the Saudi leadership in expanding counter-terrorist financing efforts. Since mid-2003, the Saudi government has: set up a joint task force with the United States to investigate terrorist financing in Saudi Arabia; shuttered some charitable organizations suspected of terrorist ties; passed anti-money laundering legislation; banned cash collections at mosques; centralized control over some charities; closed unlicensed money exchanges; and scrutinized clerics involved in charitable collections. A planned National Commission for Relief and Charity Work Abroad has not been established. As required by the Intelligence Reform and Terrorism Prevention Act (P.L. 108-458) and the Implementing Recommendations of the 9/11 Commission Act (P.L. 110-53), President Bush has submitted strategies for U.S.-Saudi collaboration, with special reference to combating terrorist financing.
For more information about Saudi Arabia, see CRS Report RL33533, Saudi Arabia: Background and U.S. Relations, by [author name scrubbed]. This report will be updated to reflect major developments.