Al-Qaeda turns to abduction to raise finances

Pressured by increased scrutiny of terrorist money sources and strikes aimed at its financiers, al-Qaeda's core organisation in Pakistan has turned to abduction for ransom to offset dwindling cash reserves, according to US officials and information in files retrieved from Osama bin Laden's compound.

Laden's interest in kidnapping as a cash-raiser bolsters accounts that the financial squeeze has staggered al-Qaeda, forcing it to search for alternative funding sources. Officials would not detail al-Qaeda's role in specific crimes, but the group's affiliates have targeted diplomats, tourists and merchants.

His awareness of al-Qaeda's growing use of kidnapping is evidence that even in isolation behind high walls in Abbottabad, Pakistan, Laden kept tabs on how his network moved its money. The al-Qaeda founder was killed last month by US Navy SEALs.

Experts from the CIA's National Counterterrorism Center, the treasury department and the FBI and military are trying to learn more from the recovered files about al-Qaeda's money sources and the impact of Laden's death on the group's financial future. They hope to identify important al-Qaeda donors, especially wealthy Persian Gulf figures.

The treasury department's acting undersecretary for terrorism and financial intelligence, David Cohen, said US efforts are focused on disrupting al-Qaeda's cash flow from donors, fundraisers and facilitators. "Al-Qaeda's supporters ought to be wondering if their identities have been revealed," Cohen said.