I attended four funerals of Secret Service agents and employees. These funerals were needlessly caused by this senseless bombing. Just this morning, we learned that senior special agent Paul Ice, of the U.S. Customs Service, was confirmed dead. That brings six lost lives to the U.S. Treasury Department already, and two people are still unaccounted for. I also have seen a magnificent joint law enforcement effort to locate the murderous bombers and bring them to justice. We must remain committed to doing all in our power in a bipartisan way to avoid similar horror in the future.

The Treasury Department plays a central role in the fight against terrorism. Our enforcement bureaus protect the most visible potential terrorist targets in the United States. We enforce laws directed at the most common instruments of terror. We protect against the smuggling of weapons of mass destruction and enforce economic sanctions against countries and groups that promote terrorism.

Mr. Chairman, let me first tell you our philosophy for approaching terrorism threats and our policies for conducting investigations. We must enforce the law, and we do. We must protect innocent citizens from crime and terrorism, and we do. But, first and foremost, we are committed to respecting the constitutional rights of all Americans. To that end, we conduct criminal investigations only of individuals or groups who we have reason to believe may be violating laws that fall under our jurisdictional purview or who are plotting to violate those laws.

Let me make clear we do not investigate individuals or groups of individuals merely because they advocate unpopular or unconventional ideas. Nor do we investigate groups solely because they are legally obtaining firearms or ammunition, and I repeat, legally obtaining firearms or ammunition.

Let me now turn to what we see as the current domestic terrorism situation, beginning with Treasury's view of the state of cooperation among Federal law enforcement components. I am pleased to tell you that there is outstanding cooperation and joint effort among Federal law enforcement agencies in attacking the domestic terrorism problem. ATF, FBI, the Secret Service, the U.S. Customs Service, the IRS, the Treasury Department, and the Justice Department are sharing information about the crime threat posed by certain organized groups.

The Oklahoma City investigation shows a perfect example of how all levels of law enforcement can work together. As you know, Timothy McVeigh, the alleged bomber, was arrested shortly after the bombing by an Oklahoma state trooper on weapons and traffic charges. When Mr. McVeigh's name became known to law enforcement as the person identified as John Doe Number 1, an ATF agent, working as part of the joint investigation team, queried the FBI's criminal history data base. He determined that a Noble County sheriff had checked the data base for the name Timothy McVeigh shortly after the bombing.

The agent called the Noble County sheriff and determined that Mr. McVeigh was in their custody. Thus, an ATF agent who was part of an FBI-led investigative team used an FBI data base to locate a prisoner held by local police based on an arrest by State authorities. We consider this an extraordinary model of cooperation.

Turning now to substantive issues, domestic terrorism is a broad concept without a precise definition. When I use that term today, I am referring to individuals or groups within the United States who reject the legitimate authority of the U.S. Government, who do not recognize the validity of Federal law, or who advocate the overthrow of the U.S. Government and who use or plan to use violence or to otherwise violate Federal law in the furtherance of these objectives.

Treasury's enforcement agencies believe that domestic terrorism has been growing steadily. We have noted an escalation in violent incidents during the past decade. Because we are the department with statutory jurisdiction to enforce the arson and explosives laws, I would like to focus on the bombing situation in the United States. Between 1983 and 1993, the number of yearly bombings in the United States more than tripled. Bombing deaths and injuries were at an all-time high in 1993, with 49 deaths and 1,323 injured. The Oklahoma City bombing obviously will make 1995 the most deadly year yet. Between 1989 and 1993, there were approximately 12,200 actual or attempted bombings in the United States. The FBI estimates that 24 were terrorist-related. Our best estimate is that the vast majority of bombing incidents have involved criminal destruction of property or non-terrorist-related revenge. Nevertheless, the Oklahoma City bombing reminds us that there is an increasing tendency among some groups to engage in antigovernment and antilaw enforcement violence.

In light of the Oklahoma City bombing, I know there is increased interest in militias and the militia movement. The militia movement is a grass-roots populist movement that derives its philosophy from the Second Amendment to the Constitution. Militias are groups of individuals who are fervently antigun control and antiFederal Government. They band together to conduct paramilitary training, to acquire destructive devices, and to possess firearms, including in some cases illegal firearms.

Some militias challenge the legitimacy of the Federal Government and refuse to comply with obligations imposed by the Federal Government, such as paying taxes. Militias have been formed in approximately 34 States, though estimates range as high as 48 States, with membership ranging from 10 to several hundred in each group.

In my written statement, I describe the important work that each of our Treasury enforcement bureaus is doing to combat terrorism. I will not repeat that here. As Deputy Attorney General Gorelick stated, this week the President announced new antiterrorism measures in the wake of the bombing in Oklahoma City. We welcome the opportunity to join our resources and expertise with other Federal law enforcement and intelligence agencies in attacking the terrorism problem.

In closing, I have been to Oklahoma City and I have witnessed the extraordinary behavior of law enforcement, citizen groups, medical personnel, rescue teams, and others. I have met with the victims and their families. I have been to the funerals of brave people who died for no good reason. We look forward to working with the Congress to enact new laws and to take additional steps to ensure

that, to the extent humanly possible, this situation does not happen again.

That completes my statement.

[The prepared statement of Mr. Noble follows:]

PREPARED STATEMENT OF RONALD K. NOBLE

Mr. Chairman, Senator Biden, members of the committee: I am pleased to have the opportunity to speak to you today about the Treasury Department's efforts in the area of domestic and international terrorism. Secretary Rubin is personally committed to the fight against terrorism, and strongly supports Treasury enforcement's efforts in this area.

I have been to Oklahoma City to see the devastation that occurred, and to talk to the families and victims. In the last three days, I attended funerals that were needlessly caused by this senseless bombing. I have also seen the magnificent joint law enforcement effort to locate the bombers and bring them to justice. We must all be committed to making sure that this kind of horror never again occurs.

The Treasury Department plays a central role in the fight against terrorism. Our enforcement bureaus protect the most visible terrorist targets in the U.S., enforce laws directed at the most common instruments of terror, protect against the smuggling of weapons of mass destruction, and enforce economic sanctions against countries and groups that promote terrorism.

Mr. Chairman, let me first tell you briefly our philosophy for approaching terrorism threats, and our policies for conducting investigations: We must enforce the law, and we do. We must protect innocent citizens from crime and terrorism, and we do. But first, and foremost, we are committed to respecting the constitutional rights of all Americans.

To that end, we conduct criminal investigations only of individuals or groups who we have reason to believe may be violating laws that fall under our jurisdictional purview, or are plotting to violate those laws. Let me make clear that we do not investigate individuals or groups of individuals merely because they advocate unpopular or unconventional ideas. Nor do we investigate groups solely because they are legally obtaining firearms or ammunition.

Of course, we keep our eyes and ears open when individuals make threatening statements. As part of its protective function, the Secret Service must monitor any organization that poses a potential violent threat to its protectees.

SCOPE OF THE PROBLEM-DOMESTICALLY

Mr. Chairman, let me now turn to what we see as the Current Domestic Terrorism situation.

I am pleased to tell you that there is outstanding cooperation and joint effort among Federal Law Enforcement Agencies in attacking the Domestic Terrorism problem. ATF, FBI, Secret Service, Customs, IRS, The Treasury Department, and The Justice Department are sharing information about the crime threat posed by certain organized groups.

Domestic Terrorism is a broad concept without a precise definition. When I use that term today-I am referring to individuals or groups within the United States who reject the legitimate authority of the United States Government, who do not recognize the validity of Federal Law, or who advocate the overthrow of the United States Government, and who use or plan to use violence or to otherwise violate Federal Law in furtherance of these objectives.

Treasury's enforcement agencies believe that Domestic Terrorism has been growing steadily. We have noted an escalation in violent incidents during the past decade.

Between 1983 and 1993, the number of yearly bombings in the United States more than tripled. Bombing deaths and injuries were at an all time high in 1993 with 49 deaths and 1,323 injured. The Oklahoma City bombing will make 1995 the most deadly year, yet.

Our best estimate is that in the past five years, the vast majority of bombing incidents have involved criminal destruction of property or non-terrorist related revenge. Nevertheless, it is clear that there is an increasing tendency among some groups to engage in anti-government and anti-law enforcement violence.

Civilians, as well as Federal and local law enforcement personnel, have been threatened, harassed, surveilled, assaulted, and murdered. Federal employers, such as IRS auditors, exercising their lawful duties have been confronted by resistance, sometimes armed, by groups that challenge the authority of the Federal Government.

Let me talk a little bit about these groups. We have investigated violent acts by individuals connected to white supremacist groups, militia or patriot groups, sects and cult-type groups, and anti-abortion groups. I hasten to say that we do not consider every one of these groups to be involved in domestic terrorism. We have, however, received information about illegal conduct by persons connected to these groups or on the fringes of these groups. We have investigated that conduct, and, in the course of these investigations, we have learned a significant amount about these groups.

It is believed that there are several hundred violent white supremacist groups in the United States In recent years, investigations of criminal conduct by members of these groups have yielded seizures of illegal weapons caches, and the discovery of plots to commit mass murder and plots to destroy property.

The militia movement is a grassroots populist movement that derives its philosophy from the second amendment to the Constitution. Militias are groups of individuals who are virulently anti-gun control and anti-Federal government. They band together to conduct para-military training, to acquire destructive devices, and to possess firearms, including in some cases illegal firearms.

Some militias challenge the legitimacy of the Federal Government, and refuse to comply with obligations imposed by the government, such as paying taxes. Militias have been formed in approximately 34 Štates, with membership ranging from ten to several hundred in each group. They can pose a serious threat to Government employees and especially Federal law enforcement.

Currently, it is estimated that there are between 700 and 2,000 sects or cult-like groups in the United States. Some of these groups are covertly obtaining firearms and explosive materials in order to prepare for what they believe is the coming end of the world, or Armageddon. Many of these groups view the United States Government as the enemy, and believe an armed confrontation is inevitable.

SCOPE OF THE PROBLEM-INTERNATIONALLY

According to the State Department, which has principal responsibility for international terrorist matters, there were 321 international terrorist attacks during 1994. Sixty-six of them were anti-U.S. attacks. The number of international and anti-U.S. attacks in 1994 was a 23 year low and was a decrease of 25% from 1993. Notwithstanding those improved statistics, worldwide casualties were 314 persons killed and 663 wounded.

Nevertheless, Treasury's enforcement agencies see new opportunities for international terrorism to widen in scope. With the dissolution of the Soviet nuclear materials and associated technologies, we anticipate increased terrorist problems. Weapons procurement networks are becoming more advanced and clandestine.

To combat these problems, Treasury, through the U.S. Customs Service, is increasing its liaison with the U.S. Intelligence Community and foreign customs and other law enforcement agencies, particularly in Eastern Europe and the former Soviet Union.

ATF is also continuing its international traffic in arms (I.T.A.R.) program, which is designed to curtail international arms trafficking. The I.T.A.R. program was developed when it became apparent that firearms originating from the United States were being recovered worldwide in such criminal acts as narcotics trafficking and terrorism.

TREASURY BUREAUS' ACTIVITIES

Next, I would like to tell you briefly what each of our treasury enforcement bureaus is doing to combat terrorism.

ATF has long played a crucial role investigating terrorist acts both in the United States and abroad. ATF has clear responsibility in these investigations because illegal firearms and explosives are the tools used to commit acts of violence against the United States and its citizens.

ATF investigates more bombing incidents than any other U.S. law enforcement agency. ATF has the foremost federal expertise in explosives and arson. They work closely with the FBI and the Postal Inspection Service. Federal, State, local and foreign governments alike recognize ATF as bomb investigation experts, and frequently rely on ATF's technical and investigative expertise. For example, ATF's international response teams assisted in the investigation of the 1992 bombing of the Israeli Embassy in Buenos Aires, Argentina.

As we sit here today, over 130 ATF personnel are in Oklahoma City working hand-in-hand with the FBI and other agencies to solve the evil bombing committed there. ATF is providing the technical bombing expertise at the Oklahoma City bombing site.

The Secret Service is responsible for protecting the Nation's most visible targets for terrorists: The President, the First Family, the Vice President, former Presidents, foreign heads of state who visit the United States, the White House complex, and foreign embassies located in the United States. The Secret Service works closely with other law enforcement agencies and the intelligence community to ensure the safety of its protectees. The Secret Service seeks timely and reliable intelligence relating to the existence, capability, history, plans and intentions of both domestic and international terrorist groups. This information is essential to the ability of the Secret Service to assess the threat posed by these extremist groups and to prevent an attack on the President, Vice-President, foreign dignitaries, other protectees and protected facilities. In addition, the Secret Service investigates direct threats to protectees made by persons associated with extremist groups.

The U.S. Customs Service is responsible for combatting illegal exports and imports of materials that support terrorism. The Customs Service is continuously working to discover illegal networks responsible for supporting terrorism. These illegal networks often are responsible for obtaining and shipping weapons, including weapons of mass destruction and associated dual-use technologies. To combat these networks, the customs service interdicts shipments at the border, investigates illegal exports, analyzes tactical intelligence and engages in international coordination through joint operations, training, and information sharing with foreign border agencies and law enforcement personnel.

In addition, the Customs Service maintains a terrorist database in the Treasury enforcement communications system and is linked directly to the CIA's counter terrorism center. Recent examples of Customs counter terrorism activities include the interception of sophisticated electrical equipment and poisonous gas precursors intended for Iraq.

The Office of Foreign Assets Control (OFAC) administers our country's economic sanctions programs against selected foreign countries and groups that support terrorism or commit terrorist acts. These programs include $2.8 billion in asset freezes and trade embargoes against several state sponsors of terrorism, including Libya and Iraq, and import and petroleum development sanctions against Iran. OFAC sanctions also target domestic fundraising activity by Middle East terrorist groups. The Internal Revenue Service, although not usually directly involved in counterterrorism investigations, conducts investigations of tax protesters, many of whom are linked to organizations, such as militias, that challenge the legitimate authority of the U.S. Government. IRS's inspections division has been involved in investigating threats against IRS personnel made by protester groups.

The Financial Crimes Enforcement Network (what we call FINCEN) provides valuable intelligence support to law enforcement agencies conducting investigations of terrorists. In the past, fincen has provided analytical intelligence in support of investigations of murder and bombings carried out by suspected terrorists.

Through research and analysis of various law enforcement and commercial databases, fincen is able to rapidly develop information concerning residences utilized by suspects, domestic and international financial transactions, foreign travel, business activities, names of associates, and aliases used by suspects. This information provides timely investigative leads that can be used to identify terrorists and their assets.

Finally, all of the treasury enforcement bureaus are focused on attacking the means by which organized criminal groups fund their operations. We have found that often crimes like financial fraud or counterfeiting are used to finance acts of terrorism. We are dedicated to using our financial crimes expertise to attack these funding mechanisms.

RECENT PRESIDENTIAL INITIATIVES

On January 23rd of this year, President Clinton signed an Executive Order prohibiting transactions with terrorists who threaten to disrupt the Middle East Peace Process. This order is being enforced by OFAC. The order blocks property of certain terrorist organizations, or persons acting on their behalf, that threaten the Middle East Peace Process. The order also prohibits the transferring of any contribution of funds, goods, or services to or for the benefit of such persons. The order provides a new tool to combat fundraising in this country on behalf of organizations that use terror to undermine the Middle East Peace Process and cuts off their access to sources of support in the U.S. and the U.S. financial system.

Section 301 of the Omnibus Counterterrorism Act of 1995, which was recently transmitted by President Clinton, contains similar blocking provisions and prohibitions against the making or receiving of certain contributions to designated terrorists.