TERRORIST FINANCE: DUTCH PERSPECTIVES ON ADDING

C O N F I D E N T I A L THE HAGUE 002457 SIPDIS NOFORN STATE FOR EB/ESC/ESP, S/CT, EUR/ERA, INR/EC TREASURY FOR ZARATE (EXO),NEWCOMB (OFAC) FBI FOR LORMEL BRUSSELS ALSO FOR LEGATT E.O. 12958: DECL: 09/29/2013 TAGS: ETTC PTER IR IZ SUBJECT: TERRORIST FINANCE: DUTCH PERSPECTIVES ON ADDING NCR/NCRI AS AN AKA FOR MEK REF: A. STATE 240844 ¶B. 02 THE HAGUE 2642 Classified By: DCM Daniel R. Russel Reason 1.5(b) and (d) ¶1. (C/NF) Summary: Given the EU's 2002 decision not to designate NCR/NCRI, the Dutch believe the USG will have to present more evidence of NCR/NCRI ties with MEK before Europe is ready to reconsider this decision. Meanwhile, the Dutch have noted indications of MEK fundraising in the Netherlands via a front group, Solidariteit met Iraanse Mensen (SIM). However, they state they have insufficient proof to move forward with a SIM designation. End Summary. ¶2. (SBU) The Dutch reacted to our demarche (ref a) by suggesting that to gain agreement in the EU to designate NCR/NCRI, the USG would need to provide more detailed information indicating these organizations are aliases for Mujahedin-e Khalq. According to the Dutch MFA, an EU clearinghouse meeting has not yet been scheduled but expectations are the Italian presidency will soon call one to consider KADEK. ¶3. (C) Post notes that the EU considered MEK, NCRI, and NCR in September 2002 (ref b) and after some consideration decided deliberately to list only MEK. ¶4. (U) The annual report of the Dutch security service (AIVD) indicates that "In the Netherlands, umbrella organizations of the MKO (Dutch acronynm for MEK) have been active in fundraising, political lobbying, and recruiting new sympathizers for, among other things, the struggle with Iran. In (the Netherlands),the foundation Solidariteit met Iraanse Mensen (SIM -- Solidarity with the Iranian People) collects money for the MKO. From the AIVD's investigations, it became apparent that the allocation of the funds maintaining and arming the MKO is in conflict with the objectives stated by the SIM. In the guise of providing support to orphaned children in Iran or children who are otherwise suffering or have suffered under the iranian regime, the SIM attempts to move (convince) people to give generously. Whereas SIM previously limited itself to fundraising in public areas (collecting in shopping malls),a shift can now be seen toward a direct personal approach of potential contributors." ¶5. (C/NF) MFA officials told Econoff that although the AIVD report is definitive in its conclusions, it is backed up with insufficient factual evidence to justify a Dutch designation of SIM. MFA told us the AIVD had hoped that a strong public statement in itself would cause SIM to scaleback its activities here. There is little indication this has taken place. SOBEL