BI won't freeze bin Laden's assets

Bank Indonesia has refused to freeze financial assets linked to Osama bin Laden as demanded by the U.S. government, according to Antara news agency.

Antara quoted on Friday central bank Governor Sjahril Sabirin as saying that according to existing banking law, Bank Indonesia could only freeze bank accounts if a banking crime had been committed.

A senior U.S. official had met with Sjahril to discuss the possibility of freezing the local financial assets of bin Laden, the prime suspect for the Sept. 11 terrorist attacks on New York and Washington.

Following the Sept. 11 attacks, the U.S. government began preparations for a war on terrorism.

U.S. President George W. Bush has called on countries around the globe to isolate terrorists from their funding sources by freezing financial assets belonging to them.

The U.S. government issued a list of 26 terrorist-related organizations to which Bush's executive order applies.

Included in the list is Osama bin Laden's al-Qaeda network.

Bush has threatened to take action against financial authorities should they fail to seek out and freeze assets of the suspected terrorists. -- JP