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