ST. GEORGE — Interest earned on the frozen bank accounts of suspected terrorists would be used to fund a counterterrorism grant program under a new law co-proposed by Staten Island Congressman Dan Donovan.
At the moment, funds in accounts frozen in the U.S. are untouched unless the assets are officially seized. If the accounts are unfrozen, the interest earned during the freeze goes to the owners.
Donovan will introduce the Terrorist Asset Seizure Reform Act (TASR) — co-sponsored by House Homeland Security Committee Chairman Michael McCaul and other — on Monday.
It would redirect the interest to a grant program to help cities prepare for future terrorist attacks.
Donovan's bill also suggests that, if accounts remain frozen for more than a year, the whole account be seized.
"Terrorists take advantage of the Western financial system to export their hateful violence," Donovan said.
"Today I’m introducing a bill that puts them on notice, their blood money won’t sit in western banks earning interest. It will got to protect innocent lives against their disgusting ideology and attacks."
The confiscated funds would be given to the Urban Areas Security Initiative (UASI) that funds anti-terror security efforts in high-risk cities. New York City received $180 million from last year, Donovan said.
The grants are in danger of having funds cut in half.
"The congressman's legislation would likely bring more funds to New York City and other large cities," said Joseph Esposito, commissioner of the city's Office of Emergency Management which gets more than half of it's budget from the grant, on Monday.
"These grants enable New York to prevent and respond to terrorist attacks."
"There is no legit reason to return assets to terrorists. They will still continue their work to kill people until they are neutralized."
