REQUEST FOR EXAMPLES OF GOOD TERROR FINANCE

C O N F I D E N T I A L KUWAIT 004559 SIPDIS STATE FOR EB/ESC/TFS, NEA/ARP TREASURY FOR OFAC, FINCEN DIRECTOR FOX AND ASST DIRECTOR FISHER E.O. 12958: DECL: 12/29/2014 TAGS: EFIN ETTC PTER KTFN KU SUBJECT: REQUEST FOR EXAMPLES OF GOOD TERROR FINANCE LEGISLATION FROM ARAB COUNTRIES REF: A. KUWAIT 4191 ¶B. KUWAIT 3748 Classified By: Ambassador Richard LeBaron for reason 1.4 (d) ¶1. (U) This is an action request, see para 4. ¶2. (C) Following up on earlier requests to Kuwait's Minister of Finance and Central Bank Governor to develop and implement strong terror finance interdiction legislation (Refs A and B,) Ambassador raised the issue December 29 with National Assembly Economic and Finance Committee Chairman MP Abdulwahab Al-Haroun. The Central Bank Governor had told the Ambassador December 1 that the Bank was working with Al-Haroun's committee to propose new amendments to the anti-money laundering laws (Ref A). However, Al-Haroun said that his committee had not yet received all of the new proposals from the Bank. The Ambassador specifically asked about the FIU's inability to properly share information and about currency controls. He also identified the difficulties in prosecuting Kuwaiti terror financier Muhsin Al-Fadhli as an example of the dangers inherent in a lack of proper terror finance legislation. ¶3. (SBU) Al-Haroun agreed that Kuwait needed better laws and said that one thing that would be most useful would be examples of effective anti-terror finance legislation from "other Arab countries," that could be used as a model for Kuwait. ¶4. (SBU) Action Request: Post requests that Department identify and provide examples of effective and implemented terror finance legislation from other Arab countries. An example of a successful Arab model is likely to be more politically palatable and more easily passed in Kuwait's contentious Parliament. Post will share this information with the Central Bank, Ministry of Finance and MP Al-Haroun. ******************************************** Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** LEBARON