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They are concerned that the banks may allow clients suspected of financing weapons development to open accounts in China, and then get access to dollars through money transfers from a foreign bank by way of its American subsidiary.
The NATO officer said Iran's intelligence agencies were playing both sides of the conflict, providing financing, weapons and training to the Taliban.
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We finance weapons manufacturing and militarism as if they were the only solutions to international conflict.
Pentagon and other administration officials say they increasingly worry that the proceeds may be intended to finance weapons programs.
During Sierra Leone's long conflict, the diamonds were sent to neighbouring Liberia where the former president Charles Taylor used the proceeds to finance weapons for rebels.
Gates stubbed his toe on the Iran-Contra affair whereby weapons were sold to Iran for hostages held by its Lebanese agents, the proceeds then illegally used to finance weapons for Nicaragua's contras.
Money has been diverted to help finance weapons systems designed to counter India, not Al Qaeda or the Taliban, the officials said, adding that the United States has paid tens of millions of dollars in inflated Pakistani reimbursement claims for fuel, ammunition and other costs.
Bush administration and military officials have expressed concerns that some of the $5 billion the United States has reimbursed Pakistan since 2001 for conducting military operations to fight terrorism has been diverted to help finance weapons systems better suited to counter India, not Al Qaeda or the Taliban.
Suspecting that Iranian banks were financing nuclear weapons and missile programs, the loophole was finally closed in 2008.
North Korea's government has been manufacturing large quantities of heroin, amphetamines, weapons and counterfeit U.S. dollars to finance its weapons development programs.
American officials suspected Iran was using those banks to finance nuclear weapons and missile programs.
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