TERRORIST FINANCE: USG TEAM VISITS TURKEY

UNCLAS ANKARA 007377 SIPDIS SENSITIVE DEPARTMENT FOR EB/ESC (GGLASS),S/CT (TNAVRATIL),EUR/SE, IO/PHO (APEREZ) NSC FOR GPETERS TREASURY FOR GENERAL COUNSEL (DAUFHAUSER),OFAC DIRECTOR (RNEWCOMB),THE TREASURY TASK FORCE ON TERRORIST FINANCING JUSTICE FOR AFMLS (SHAYDEN) E.O. 12958: N/A TAGS: EFIN ETTC PTER TU SUBJECT: TERRORIST FINANCE: USG TEAM VISITS TURKEY REF: A. 02 ANKARA 8851 ¶B. ANKARA 126 ¶C. ANKARA 5365 ¶1. (SBU) Summary: On November 17-19, a three-person team from DOS and DOJ met in Ankara with GOT officials to assess the status of Turkey,s efforts to combat terrorist financing, and determine what assistance USG should offer. GOT officials were generally receptive, and the USG team is likely to recommend Turkey tighten its legal framework regarding money laundering and terrorist financing, and to recommend USG assistance in the judicial/prosecutorial and regulatory areas. End Summary. ¶2. (SBU) The USG team included officials from State/INL, State/S/CT, and DOJ/AFMLS, and met with officials from the Ministries of Interior, Justice, Finance and Foreign Affairs, the PM,s General Directorate for Charities, the Ankara State Security Court, the British Embassy, and the European Commission. The team was conducting further interviews in Istanbul on November 20 when the latest bombings compelled suspension of its efforts. Most of the team,s interlocutors were highly cooperative and very interested. ¶3. (SBU) By year end, the team intends to produce a report detailing its findings and recommendations. Though preliminary, the following findings and recommendations are likely: -- The tools currently available under Turkish law for locating, freezing and confiscating terrorist assets are cumbersome, limited and not particularly effective (Reftels). Turkey needs to revise its legislation to explicitly criminalize the financing of terrorism, strengthen its anti-money laundering legislation, resolve jurisdictional disputes between courts, make it easier to seize terrorists' assets, improve the functioning of MASAK (the financial intelligence unit),and strengthen the Suspicious Transaction reporting regime. The GOT is aware of the problems with its current legal framework, and intends in the near future to submit to Parliament draft legislation to address some of the problems. The team is generally satisfied with the legislation as described to it, but is not convinced that the draft addresses all the problems. With the notable exception of MASAK, GOT personnel interviewed expressed interest in USG assistance in refining the draft legislation. The team is likely to recommend that the USG provide such assistance. -- GOT Interagency cooperation is insufficient. Although Finance Undersecretary Aktan told the team that proposed changes to the composition and functioning of the Coordination Board for Combating Financial Crimes will address this problem, the team is not fully convinced that the changes go far enough or address the underlying problem of a cumbersome policy development process. -- In early 2004, the European Commission will undertake two projects that are intended to improve the ability of MASAK and the Turkish National Police to pursue financial crimes, including terrorist financing. USG efforts should be coordinated with EC efforts, to avoid duplication of effort and ensure best utilization of resources. -- Turkish prosecutors and judges desire and need substantial training in financial crimes. The team is likely to recommend that the USG offer such training, probably in the form of a DOJ Intermittent Legal Advisor. -- MASAK reportedly will soon take over the CTF/AML compliance examination function from the Bank Regulatory and Supervisory Agency. MASAK personnel will need training in banking operations and examination techniques. The team is likely to recommend that the USG offer this training through the federal financial institution regulatory agencies. ¶4. State/INL and State/S/CT delegation members cleared this cable. DEUTSCH