TERRORIST FINANCE: TIMING OF ZINDANI DESIGNATION

S E C R E T SANAA 002004 SIPDIS EB/ESC/ESP (GGLASS),S/CT (SFOX),NEA (DIBBLE),NEA/ARP (HEFFERNAN),I0/PHO (APEREZ),TREASURY GENERAL COUNSEL (DAUFHAUSER) TREASURY (JZARATE) OFAC (RNEWCOMB) AND TREASURY TASK FORCE ON TERRORIST FINANCING E.O. 12958: DECL: 08/12/2013 TAGS: PREL ETTC EFIN PTER CVIS KVPR YM TERFIN COUNTER TERRORISM SUBJECT: TERRORIST FINANCE: TIMING OF ZINDANI DESIGNATION VIS A VIS MOAYED EXTRADITION REF: A. SECSTATE 172268 ¶B. SANAA 1587 ¶C. SANAA 1879 ¶D. SANAA 1945 ¶E. SANAA 1971 Classified By: Charge d'Affaires Alan G. Misenheimer for reasons 1.5 (b and d) ¶1. (U) This is an action request. See paragraph 4. ¶2. (S/NF) Post understands that the German Constitutional Court has indicated it will issue a decision to extradite Sheikh Mohammed Ali Hassan al-Moayed and his colleague Mohammed Mohsen Yahya pending the answers to questions posed to the USG. However, the timing of the announcement of the decision remains unknown. Best estimates of German officials and Amembassy officers in Sanaa are that Sheikh al-Moayed could be extradited to the United States within several weeks. ¶3. (S/NF) From conversations with the Department, Post further understands that declassification procedures for the statement of case to designate Sheikh Abdul Magid Zindani (refs a and b) are near completion. We have been told that we can expect a pre-notification cable to designate Zindani by the end of August. ¶4. (S/NF) Comment/Action request: Post fully supports the designation of Zindani, and has pre-briefed the issue and received initial indications of ROYG support (ref b). The al-Moayed case, in contrast, remains extremely sensitive in Yemen and presents significant political costs for the ROYG (refs c, d and e). Sheikh Zindani does not enjoy the same level of general public support as al-Moayed. However, should Zindani's designation be announced at or near the time of al-Moayed's extradition, we anticipate a heightened negative public reaction due to a perceived linking of the two cases. This reaction would be exacerbated if the Moayed extradition decision came before the Zindani designation. The government's need to manage this reaction could lead to decreased political will to fully support and implement Zindani's designation. Therefore, Post requests that the Department consider completing Zindani's designation as rapidly as possible -- immediately if feasible -- to distance it from the expected al-Moayad decision and maximize ROYG support. End Comment/Action request. MISENHEIMER