TERRORIST FINANCING: ANKARA: MEETING WITH MFA RE

S E C R E T SECTION 01 OF 02 ANKARA 005365

SIPDIS


DEPARTMENT FOR EB/ESC/(GGLASS),S/CT (SFOX),EUR/SE;
O/PHO/APEREZ;
NSC FOR GPETERS;
TREASURY FOR GENERAL COUNSEL (DAUFHAUSER),OFAC (RNEWCOMB),
TREASURY (JZARATE) AND THE TREASURY TASK FORCE ON TERRORIST
FINANCING


E.O. 12958: DECL: 08/21/2013
TAGS: EFIN ETTC PTER TU
SUBJECT: TERRORIST FINANCING: ANKARA: MEETING WITH MFA RE
TERRORIST FINANCING EFFORTS

REF: A. STATE 240844

B. STATE 238111

C. STATE 226346

D. ANKARA 04948



1. (U) Classified by Economic Counselor Scot Marciel for
Reasons 1.5 (b),(d).



2. (C) Summary: Econoffs met with MFA Deputy Director
General for Research and Intelligence Hakan Okcal on August
20 to deliver Ref A and B demarches, and obtain an update on
status of previous designations. Okcal took the opportunity
to describe how the GOT deals with terrorism finance
demarches. End Summary.
--------------
Mujahedin-El Khalq
--------------



3. (C) Econoffs delivered Ref A Talking Points and Background
Paper. Okcal noted that since the USG did not intend to
request action by UN 1267 Sanctions Committee, the GOT would
not take formal action (see Ref D). However, Okcal stated
that he does not believe the MEK has any assets in Turkey,
and also noted that GOT would for its own reasons quickly
seize any MEK assets it could find. Okcal explained that
whenever Turkey complains to Iran about harboring the PKK,
Iran responds by accusing Turkey of harboring MEK. Because of
this &very delicate8 issue, Okcal said, GOT will not permit
any MEK activities within the country.
--------------
Al Zindani and Waldenberg
--------------



4. (S) Econoffs delivered Ref B Talking Points and
Background Paper, emphasizing the close hold. Consistent
with his prior position (see Ref D),Okcal advised that GOT
would issue a decree regarding Al-Zindani & Waldenberg
following UN designation.


--------------
Basayev
--------------



5. (C) Okcal stated that GOT has not yet issued a decree
regarding Basayev, but will do so now that an additional
designation request has been received (Ref B). Okcal
explained that the GOT cannot issue a decree each time a
designation request has been received. Okcal stressed,
however, that as soon as a request is received, he formally
notifies all GOT agencies, which then take action to
ascertain whether the designated parties hold any assets in
Turkey. Enforcement bodies such as the Ministry of Finance,s
Financial Inspections Board are then able to block assets
based on their existing authorities, without necessarily
basing their actions on the slower and more cumbersome
terrorist asset-freezing procedure. Thus, Okcal claimed that
any delay in the issuance of a decree should not have any
adverse practical effect. Okcal advised that he has not yet
received back from GOT agencies any response to his initial
notification on Basayev, and that responses normally take
about one month.


--------------
Nasreddin
--------------



6. (C) A local press account speculated that NASCO Nasreddin
, part of the Nasreddin group previously designated by the
U.S. and the U.N., could benefit from a tax amnesty on
exporters under consideration by the GOT. In response to
Econoffs, inquiry, Okcal insisted that (a) any tax amnesty
would not affect asset freezes; (b) he does not think that
NASCO will receive an amnesty; and (c) in any event he has
written to GOT authorities, advising them to inform him
before taking any action with respect to NASCO (to which he
has not yet received any response).
--------------
Okcal Guidance on GOT Procedures Re Terrorist Asset Freezes
--------------



7. (C) Okcal reiterated that current Turkish legislation is
not adequate to the task of freezing assets. He said that the
Ministry of Justice and Ministry of Finance were considering
new counter-terrorist legislation, which would contain
provisions that address this problem. As an &interim
solution,8 GOT issues administrative decrees, which are
based on the authority of Chapter 7 of the United Nations
Charter (which has binding effect in Turkey). He gave
Econoffs copies of the five decrees that have been issued to
date (which in the aggregate designate over 100 individuals
and organizations). Okcal stated that although &traces8 of
a few groups have been discovered, except for Yasin Al-Kaidi
no current activities or assets have been located.



8. (S) Okcal emphasized that his role was purely
&conducive8 (i.e., he transmits requests as received). He
explained that two organizations within the Ministry of
Finance have operational responsibility for seizures: the
Financial Crimes Investigation Board (MASAK),and the
Financial Inspection Board. MASAK is supposed to be the
coordinating authority, but according to Okcal (strictly
protect) is &somewhat weak.8 Okcal believes that it would
be a &tremendous help8 if the U.S. &kept pressure8 on the
Ministry of Finance and that Post should vigorously engage
MASAK. (For example, Okcal stated that MASAK and Turkish
judges would benefit from an ongoing training program.)
EDELMAN