Identifier
Created
Classification
Origin
03ANKARA2332
2003-04-10 13:22:00
SECRET
Embassy Ankara
Cable title:  

TERRORIST FINANCE: RESPONSE TO REQUEST ON FROZEN

Tags:  ETTC EFIN PTER CVIS TU 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
S E C R E T SECTION 01 OF 02 ANKARA 002332 

SIPDIS


STATE FOR EUR/SE, EB/ESC/ESP (GLASS) AND SC/T
TREASURY FOR GENERAL COUNSEL (DAVID AUFHAUSER) AND TASK
FORCE ON TERRORIST FINANCING


E.O. 12958: DECL: 04/10/2006
TAGS: ETTC EFIN PTER CVIS TU
SUBJECT: TERRORIST FINANCE: RESPONSE TO REQUEST ON FROZEN
ASSETS


REF: A. A. STATE 71056

B. B. STATE 160165


Classified by Economic Counselor Scot Marciel for reasons 1.5
(b),(d).


S E C R E T SECTION 01 OF 02 ANKARA 002332

SIPDIS


STATE FOR EUR/SE, EB/ESC/ESP (GLASS) AND SC/T
TREASURY FOR GENERAL COUNSEL (DAVID AUFHAUSER) AND TASK
FORCE ON TERRORIST FINANCING


E.O. 12958: DECL: 04/10/2006
TAGS: ETTC EFIN PTER CVIS TU
SUBJECT: TERRORIST FINANCE: RESPONSE TO REQUEST ON FROZEN
ASSETS


REF: A. A. STATE 71056

B. B. STATE 160165


Classified by Economic Counselor Scot Marciel for reasons 1.5
(b),(d).



1. (S) SUMMARY: Turkish officials could not provide exact
dollar amounts regarding the seized assets of NASCO Nasreddin
Holding A.S. or Wa'el Julaidan's import-export firm Meram
Seyahat. However, they did inform us that the GOT has frozen
the assets of the Nasreddin family and that, following the
November 2002 designation, the Ministry of Interior deported
the Nasreddins (father and two sons) from Turkey. A Turkish
Finance Ministry official complained to us that the U.S. and
UN have provided a dearth of specific intelligence to assist
in their efforts. Furthermore, he complained of a "double
standard" in which countries like Britain have not applied
the same pressure on designees as the GOT. END SUMMARY.



2. (S) Finance Ministry Inspector Hamza Kacar, who is
leading the investigations into NASCO and Julaidan, informed
us April 9 that assets have and are currently being seized
for NASCO Nasreddin but that no assets have been found for
Julaidan. (The Finance Ministry takes the lead in
investigating such cases, through examination of tax
records.) He could not provide an exact amount of NASCO's
seized assets, noting that the company is being investigated
by tax offices throughout the country and no centralized
authority exists to tally the total amount. Kacar said that
the investigation could take as long as a year, because
NASCO's ownership structure has so many affiliates. Kacar
complained that the UN designation was vague, and that he did
not know the extent to which the GOT should investigate
NASCO's affiliates. (We notified him April 10 that the GOT
was only obligated to seize and investigate the assets of the
entities within the Nada/Nasreddin Network that were
designated by the U.S. and UN last year - ref B.)



3. (S) While we do not know the exact amount of frozen
assets, the designation has had serious consequences for the
Nasreddin family (father Ahmed Idris and sons Abdul Rahim and
Saleh),which has filed a lawsuit with the Danistay
(administrative court). Kacar said they were deported by the
Ministry of Interior shortly after the November designation.
According to MFA Deputy Director General for Research Hakan
Okcal, NASCO's insurance company, Commercial Union Sigorta
As, has stopped insuring and withheld two liability payments
-- one for $2,100 and a car damages claim for $4,000. Okcal
said that officials were claiming they have been a
respectable, tax-paying Turkish company since 1987. "They
are saying that because of the decree, their reputation has
been marred and they can't deal in the markets anymore,"
Okcal said.



4. (S) Kacar also complained that because the Finance
Ministry lacks specific evidence linking NASCO Nasreddin
Holding A.S. to terrorist financing, the Nasreddins may win
sympathy from the court and have its assets unfrozen. Kacar
explained that in the case of Yasin al-Kadi, Turkish courts
found in favor of the GOT, not only because of the UN
designation but also because al-Kadi had fled the country.
Kacar said that in the Nasreddins' case, absent specific
evidence, the court is more likely to rule in their favor.
(Ref B provides the background information associated with
the 14 entities in the Nada/Nasreddin Network. Most of the
evidence of terrorist links points to Ahmed Idris Nasreddin
and Youssef Nada, who were directors of shell companies in
the Bahamas that have since been closed. Many of the 14
designees, including NASCO Nasreddin Holding A.S., are
affiliates of those shell companies. However, ref B provides
scant direct evidence linking affiliates such as NASCO
Nasreddin Holding A.S. with terrorist financing.)



5. (S) Finally, Kacar said that following GOT asset
freezing, designees such as al-Kadi and the Nasreddins are
now residing in the UK. He has received this information
from the Nasreddins' partners and from al-Kadi's lawyer. He
also said that al-Kadi's lawyer has advised that Yasin
al-Kadi has upcoming plans to travel to the United States.
Kacar complained of a "double standard" in which the GOT
takes strong actions against terrorist financiers only to see
them live in comfort in another country. He added that, over
the long-term, the GOT may eventually find it more difficult
to partake in asset freezing actions if it perceives a lack
of uniformity among allies in the war against terrorism.
(Kacar, however, did not have evidence that al-Kadi or the
Nasreddins were obtaining funds from designated entities in
the UK. Furthermore, Econoff advised Kacar that the UN
resolution requiring asset seizure does not obligate
countries to deport associated individuals.)
PEARSON