Interesting article in The Washington Post the other day. Apparently, terrorists are using U.S.-based hosting companies to host their websites containing recruitment videos and other terrorist propaganda materials. Given the ease and anonymity of these companies’ hosting services, a variety of terrorist organizations have been able to uses these services as a launchpad to rally supporters and disseminate information.

It’s surprising to this author that The United States Department of Treasury Office of Foreign Assets Control (“OFAC”) has not been more severe in their penalizing of U.S. hosting companies for allowing such transactions to take place.

Under the Global Terrorist Sanctions Regulations administered by OFAC its a violation for any U.S. person to engage in any type of transaction with a Specially Designated Global Terrorist (“SDGT”) or to provide goods or services to such individuals. The consequences of engaging in such activity can be the imposition of either civil or criminal penalties. Therefore, it follows that U.S. based companies serving customers via the Web must proceed cautiously and at a minimum, make an automatic OFAC background name check part of their process in servicing online transactions.

Whether or not this is already being done is more likely than not a question to be answer on a company per company basis. However, it should be implemented industry wide in order to prevent not only the accidental provision of support to individuals and entities as insidious as those engaging in terrorist activities, but also to avoid punishment from OFAC.

For the full Washington Post Article click here.

For more information about the Global Terrorist Transactions Regulations click here.