U.S. Prosecutors’ Tactical Shift in Terror Cases May Put Banks Under Microscope

By Brian Orsak

U.S. prosecutors have shifted tactics in trying terrorist financing cases, a move that may translate into regulatory trouble for banks, say former law enforcement officials. The Justice Department, following high-profile failures in terrorism-related cases-such as a mistrial in October against the leaders of Muslim charity Holy Land Foundation for Relief and Development-is prosecuting suspected terrorists for white collar crimes rather than terrorism-specific charges. The technique, known as the Al Capone approach, has long been used in cases involving organized crime and drug trafficking. The shift will free Justice Department resources so it can bring forward more cases. That may resonate...