Zarate - Treasurys war : the unleashing of a new era of financial warfare

TREASURYS WAR

The Unleashing of a

New Era of Financial Warfare

JUAN C. ZARATE

PublicAffairs New York

Copyright 2013 by Juan C. Zarate

Hardcover first published in 2013 in the United States by PublicAffairs,

a Member of the Perseus Books Group

Paperback first published in 2015 by PublicAffairs

All rights reserved.

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Book design by Mark McGarry, Texas Type & Book Works Set in Meridien

The Library of Congress has cataloged the hardcover as follows:

Zarate, Juan Carlos.

Treasurys war : the unleashing of a new era of financial warfare / Juan C. Zarate.First edition.

pages cm.

Includes bibliographical references and index.

ISBN 9781610391160 (ebook)

1. United States. Dept. of the Treasury. 2. TerrorismFinancePrevention. 3. Money launderingPrevention. 4. Commercial crimesPrevention. 5. FinanceMoral and ethical aspectsUnited States. 6. National securityUnited States. 7. Security, International. I. Title.

HJ261.Z37 2013

363.325170973dc23

2012051582

ISBN 978-1-61039-464-2 (paperback)

10 9 8 7 6 5 4 3 2 1

To my father and mother, who came to this country believing in the American dream and who showed us with unconditional love how to live it. And to my wife, whose support and love made this story possible.

An entertaining insiders account of Americas new breed of financial power... full of interesting accounts of the way smart sanctions were applied... a valuable history of a hidden but essential part of Americas response to 9/11.Geoff Dyer, Financial Times

Mr. Zarate brings verve and the joy of combat to this and other tales.... In Mr. Zarates hands, what could have been a dry series of think-tank papers becomes a lively narrative filled with heroes, villains and fools.Stewart Baker, Wall Street Journal

[A] thorough, thoughtful insiders account.... The true value of Zarates book lies in explaining the difference between traditional sanctions and this new form of financial warfare.Jordan Chandler, Washington Post

This book is an eye-opener. Under Mr. Zarate, and his successors, Treasury quietly built new capabilities that owe less to junk bonds than to James Bond.... Treasurys War does a fine job of shedding light on a new and significant aspect of international relations that many of us may not be aware of, and that is likely to gain in importance in the years to come.Bryan Burrough, New York Times

Well qualified to provide readers with an insiders view, [Zarate] describes innovative and integrated financial warfare techniques that have proved effective in neutralizing and weakening such adversaries as Al Qaeda, North Korea, Iran, Iraq, and Syria.CHOICE

Zarates book admirably underscores the dire national-security threat posed by the almost-unfathomable level of our national debt.... There is much in Zarates book that enlightens us, and he gets many things right and proposes some innovative ideas.National Interest

One of the worlds most challenging assignmentsexplained in vivid, dramatic detail by Juan C. Zarate, a former super sleuth in the U.S. governments long campaign to find and disrupt al-Qaidas terrorist funding in the Worldwide Web.... Zarates Treasurys War is a gripping electronic whodunit in a constantly changing environment where inequalities are widening and where technology is destroying more jobs than it creates.... This is the first book that lifts the veil of secrecy on the financial power [Zarates team] marshaled against Americas enemies.Arnaud de Borchgrave, United Press International

A must-read for anyone who wants to know where we are, where weve been, and what challenges lie ahead.... Treasurys War is detailed, interesting, and sincere.ABA Banking Journal

An insightful account of the evolution, development, implementation, and fine tuning of the [Treasurys] tools of financial warfare in the post 9/11 world, as well as a reinvention of its role in exercising these tools. This interesting account combines Zarates eye for meticulous detail, zeal, focus, and his powers of cogent argument as a skillful prosecutor with the incomparable expertise and research insights of a scholar, and the vision and foresight of a thinker.... Thanks to the rich factual information contained and the great insights offered into the role of a number of national security and foreign policy officials involved in designing and flexing this financial warfare toolkit, this book is a compelling read for policy makers, academics, students, and practitioners interested in the phenomenon of financial warfare and its use and relevance in todays world of asymmetric threats, stateless actors, and rogue states that imperil U.S. security.Amit Kumar, National Security Law Journal

Juan Zarates book is a richly deserved celebration of [the Treasurys] unsung successand an essential guide to how their financial power can be most effectively used.Mark Dubowitz and Annie Fixler, Journal of International Security Affairs

A bracing account by a knowledgeable authority.Kirkus

On October 8, 2012, Iranian president Ahmadinejad stated that a hidden war is under way... a kind of war through which the enemy assumes it can defeat Iran. He was right, but this warfare is no longer secret, and its been used in the past decade for national security interests against al-Qaeda, North Korea, Iraq, and Syria. Zarates lessons about financial power include carefully monitoring our techniques to ensure we retain that power, and his follow-the-money and financial-network analysis highlights emerging threats and enemy weaknesses that produce valuable insight into national security issues. This thought-provoking book will contribute to the ongoing discussion about leveraging twenty-first-century financial power.Booklist

[A] former U.S. Treasury and White House counterterrorism official recounts how his team worked to uncover hidden or layered assets in Iraq and helped fight the Bush administrations War on Terror... those intrigued by international money laundering and the U.S. governments efforts to prevent rogue states from financing terrorism will appreciate Zarates account.Publishers Weekly

Juan Zarate has written an exceptional book about a vital area of our national security very few people understand. I observed first-hand the evolution and targeting of illegal financing led by Zarate and other pioneers who remain on the frontier of fighting international corruption. Juans insights will educate every reader.Admiral Mike Mullen, 17th Chairman, Joint Chiefs of Staff