"\u003chtml xmlns:o=\"urn:schemas-microsoft-com:office:office\"\r\nxmlns:w=\"urn:schemas-microsoft-com:office:word\"\r\nxmlns:st1=\"urn:schemas-microsoft-com:office:smarttags\"\r\nxmlns=\"http://www.w3.org/TR/REC-html40\"\u003e\r\n\r\n\u003chead\u003e\r\n\u003cmeta http-equiv=Content-Type content=\"text/html; charset=windows-1252\"\u003e\r\n\u003cmeta name=ProgId content=Word.Document\u003e\r\n\u003cmeta name=Generator content=\"Microsoft Word 11\"\u003e\r\n\u003cmeta name=Originator content=\"Microsoft Word 11\"\u003e\r\n\u003clink rel=File-List href=\"2012J27_files/filelist.xml\"\u003e\r\n\u003ctitle\u003eTERRORISM AND MONEY LAUNDERING\u003c/title\u003e\r\n\u003co:SmartTagType namespaceuri=\"urn:schemas-microsoft-com:office:smarttags\"\r\n name=\"place\"/\u003e\r\n\u003co:SmartTagType namespaceuri=\"urn:schemas-microsoft-com:office:smarttags\"\r\n name=\"City\"/\u003e\r\n\u003c!--[if gte mso 9]\u003e\u003cxml\u003e\r\n \u003co:DocumentProperties\u003e\r\n \u003co:Author\u003eAdil 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style=\u0027text-align:center\u0027\u003eBy\u003cbr\r\nstyle=\u0027mso-special-character:line-break\u0027\u003e\r\n\u003c![if !supportLineBreakNewLine]\u003e\u003cbr style=\u0027mso-special-character:line-break\u0027\u003e\r\n\u003c![endif]\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003eNoor Alam Khan\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal align=center style=\u0027text-align:center\u0027\u003eAdvocate, \u003cst1:City\r\nw:st=\"on\"\u003e\u003cst1:place w:st=\"on\"\u003ePeshawar\u003c/st1:place\u003e\u003c/st1:City\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eThe\r\ninternational community is slow to formulate a universally agreed upon, legally\r\nbinding definition of \u0026quot;terrorism\u0026quot;. There is no consensus regarding\r\nthe definition of the \u0026quot;terrorism\u0026quot;. Various Governments and legal\r\nsystems use different definitions of \u0026quot;terrorism\u0026quot;. These difficulties\r\narise from the fact that the term \u0026quot;terrorism\u0026quot; is politically and\r\nemotionally charged. Terrorism is damage of people or property of local as well\r\ngovernmental, by the people not acting according to law of the country, and for\r\nthe purpose of redressing an imaginary injustice attributed to an established\r\ngovernment and aimed directly or indirectly to defeat an established\r\ngovernment. The established governments observe terrorist activity as\r\nterrorism. Terrorists themselves see it as war - war against an enemy, an\r\noppressor, war for freedom, justice, etc. Indeed, they see themselves as on a\r\nrightful path, fighting for their lawful rights. They pursue their wars by\r\ndestroying people and property.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u0026quot;Terror\u0026quot;\r\nis used as a sign of horror, shock or hatred, is known to human society and\r\ncivilization since times immemorial but \u0026quot;terrorism\u0026quot; as an `ism\u0027 or an\r\narticulated pattern of thought and activity. Test to determine whether a\r\nparticular act is \u0026quot;terrorism\u0026quot; or not, is the motivation, object,\r\ndesign or purpose behind the act and not the consequential effect created by\r\nsuch act. Terrorism, in this context has to be understood as a species\r\ndifferent and apart from terror, horror, shock, fear, insecurity, panic or\r\ndisgust created by an ordinary crime. Therefore, word \u0027Terrorism\u0027, inter alia\r\nwould mean the use or threat of action, where use or threat was designed to\r\ncoerce and intimidate or impress the government or the public; or a section of\r\npublic or community; or sect or create a sense of fear or insecurity in\r\nsociety; and would create a serious risk to safety of the public or a section\r\nof public; or was designed to frighten the general public and thereby prevent\r\nthem from coming out and carrying on their lawful trade and daily business; and\r\ndisrupt civil life. So a person who has committed an offence of terrorism as\r\ndefined above or who has been concerned in the commission, preparation or\r\ninstigation of acts of terrorism is called \u0026quot;terrorist\u0026quot;.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eMoney\r\nlaundering means the concealment of money of the true nature, source, location,\r\ndisposition, movement, rights with respect to, or ownership of property,\r\nknowing that such property is derived from serious crime. The money launder,\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e---\u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e \u003c/span\u003eneeds to conceal the true ownership and origin of the\r\nproceeds;\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e---\u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e \u003c/span\u003e\u003cspan class=GramE\u003ehe\u003c/span\u003e needs to maintain control of the\r\nproceeds; and\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e---\u003cspan style=\u0027mso-tab-count:\r\n1\u0027\u003e \u003c/span\u003e\u003cspan class=GramE\u003ehe\u003c/span\u003e needs to change the form of the\r\nproceeds.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eIt\r\nis also mean the crime of moving money that has been obtained illegally through\r\nbanks and other businesses \u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan class=GramE\u003eto\u003c/span\u003e make\r\nit seem as if the money has been obtained legally. Money laundering is the\r\nprocess by which large amounts of illegally obtained money (from drug\r\ntrafficking, terrorist activity or other serious crimes) is given the\r\nappearance of having originated from a legitimate source. Money laundering\r\nplays a fundamental role in facilitating the ambitions of the terrorist. And\r\nevery civilized country has made the fight against money laundering and the\r\nfinancing of terrorism which is a main concern.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eTerrorist\r\nfinancing involves the illegal gain of funds, with the intention that they may\r\nbe used to support terrorist acts or organizations. This fund is received from\r\nillegal source. To overcome the illegal transfer of funds, the United Nations\r\nhas also passed an \u0026quot;International Convention for the Suppression of the\r\nFinancing of Terrorism\u0026quot; with the aims to facilitate the prosecution of\r\npersons accused of involvement in the financing of terrorist activities, by\r\nobliging States parties to prosecute them or extradite them to another State\r\nthat has established its jurisdiction to try them. It also requires States\r\nparties to take a number of measures to prevent and counteract the financing of\r\nterrorism. This \u003cspan class=GramE\u003eConvention,\u003c/span\u003e is therefore, broader in\r\nscope than earlier so-called sectoral counter-terrorism conventions, in that it\r\ndoes not relate to certain specific types of terrorist acts, but rather seeks\r\nto prevent such acts by \u0026quot;drying up\u0026quot; their sources of financing.\r\nAccording to this convention, a person commits the crime of financing of\r\nterrorism \u0026quot;if that person by any means, directly or indirectly, unlawfully\r\nand wilfully, provides or collects funds with the intention that they should be\r\nused or in the knowledge that they are to be used, in full or in part, in order\r\nto carry out\u0026quot; an offence, within the scope of the Convention. Moreover,\r\naccording to the Vienna Convention and the Palermo Convention provisions on\r\nmoney laundering describes three ways that are: (i) the conversion or transfer,\r\nknowing that such property is the proceeds of crime (ii) the concealment or\r\ndisguise of the true nature, source, location, disposition, movement or\r\nownership of rights with respect to property, knowing that such property is the\r\nproceeds of crime; and (iii) the acquisition, possession or use of property,\r\nknowing, at the time of the receipt, that such property is the proceeds of\r\ncrime.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eIn\r\nterrorism and money laundering the criminals make an illegitimate use of the\r\nfinancial sector. The techniques used to financial support for terrorism are\r\nvery similar and in many instances are identical. An effective anti-money\r\nlaundering/counter financing of terrorism framework must, therefore, address\r\nboth risk issues: it must prevent, detect and punish illegal funds entering the\r\nfinancial system and the funding of terrorist individuals, organizations and/or\r\nactivities. Therefore, efforts should be made to identify the various\r\ncomponents of the criminal or terrorist network. This implies to put in place\r\nmechanisms to read all financial transactions, and to detect suspicious\r\nfinancial transfers. The primary goal of individuals or entities involved in\r\nthe financing of terrorism is, therefore, not necessarily to conceal the\r\nsources of the money but to conceal both the financing and the nature of the\r\nfinanced activity.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eAcquiring\r\nof funds i.e. money and property of others is the vital purpose of every\r\nserious criminal. These assets are also the main source of criminal activities\r\nand also stimulate for further crime. In the case of the terrorist, funds are\r\nacquired not as an end in itself, but to achieve political ends by aggressive\r\nmeans. In either case, tracing of the funds may be a way of identifying the\r\ncriminal, recovering the proceeds, and preventing further criminal acts. The laundering\r\nof money, camouflage its source and giving it an atmosphere of propriety. It\r\nplays an essential part in serious and organized crime; from which it follows\r\nthat the combating of money laundering plays an equally important part in the\r\nfight against organized crime, and to defeat the financing of terrorism.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003e\u003cspan\r\nclass=GramE\u003eMany of the methods applied by criminals for terrorism (financial\r\nsupport) and money laundering for the transfer of funds to achieve their hidden\r\ndesires.\u003c/span\u003e Financial institutions, in particular banks, are most\r\nvulnerable to \u003cspan class=GramE\u003eabuse\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003efor\u003c/span\u003e\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003ethat\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003epurpose.\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003e\u003cspan class=GramE\u003eIn\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003eorder\u003c/span\u003e\u003cspan\r\nstyle=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003eto\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \r\n\u003c/span\u003eprotect\u003cspan style=\u0027mso-spacerun:yes\u0027\u003e \u003c/span\u003ethemselves, it is\r\nessential that financial institutions have adequate control and procedures in\r\nplace that enable them to know the person with whom they are dealing. Adequate\r\ndue diligence on new and existing customers is a key part of these controls.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eHundi\r\nsystem of transfer of money on the performance and honour of a huge network of\r\nmoney brokers, which are located in \u003cspan class=GramE\u003eall the\u003c/span\u003e world\r\nspecially in the Middle East, North Africa, the Horn of Africa, and \u003cst1:place\r\nw:st=\"on\"\u003eSouth Asia\u003c/st1:place\u003e. It is basically a parallel or alternative\r\nremittance system that exists or operates outside of, or parallel to\r\ntraditional banking or financial channels. This type of system is, also a type\r\nof money laundering, also helpful for the terrorist and their transfer of funds\r\nto achieve their goals.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eThe\r\ninternational community is going to fight against terrorism and money\r\nlaundering. Among the goals of this effort are: protecting the integrity and\r\nstability of the international financial system, cutting off the resources\r\navailable to terrorists, and making it more difficult for those engaged in\r\ncrime to profit from their criminal activities.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eIn\r\nthe last, I would say that it is impossible to stop terrorism by killing or punishing\r\nterrorist leaders. As long as the cause of terrorism such as financial support\r\nremains, new terrorist leaders appear and replace those killed or punished. The\r\nkilled terrorist leaders become symbols, martyrs, saints and role models for\r\ntheir followers. Occasional terrorist incidents become regular and increasingly\r\nfrequent part of daily life, until they reach the proportions of a full-scale\r\ncivil war. All of it is happened when financial gain (by money laundering) and\r\nsupport is going on. The efforts should be made to control financial support.\r\nBecause on the way of spreading terrorism is the money laundering. When there\r\nshould no funding then there will be no way for a terrorist to purchase arms\r\nand ammunition.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal style=\u0027text-align:justify\u0027\u003e\u003cspan style=\u0027mso-tab-count:1\u0027\u003e \u003c/span\u003eIt\r\nis a high time that person(s) on helm of affairs should take concrete steps to\r\neradicate this nuisance from our society and make such laws, and of course\r\nimplement them in letter and spirit, in whose presence the terrorist(s) find\r\nthe act of terrorism a hard nut to crack rather than easy pickings.\u003c/p\u003e\r\n\r\n\u003cp class=MsoNormal\u003e\u003co:p\u003e\u0026nbsp;\u003c/o:p\u003e\u003c/p\u003e\r\n\r\n\u003c/div\u003e\r\n\r\n\r\n \r\n\u003c/head\u003e\r\n \r\n\r\n\u003c/html\u003e\r\n"