Identifier
Created
Classification
Origin
04MADRID4415
2004-11-18 15:30:00
CONFIDENTIAL
Embassy Madrid
Cable title:  

TERRORISM FINANCE DISCUSSIONS WITH GOS TREASURY

Tags:  KTFN EFIN PREL PTER SP 
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C O N F I D E N T I A L MADRID 004415 

SIPDIS

STATE PASS EB/ESC/TFS (BSTEPHENSON),S/CT (TKUSHNER),
NEA/ARP (TWILLIAMS),NEA/ELA (DBARON),IO/PHO (APEREZ),NSC
(MRUPPERT),TREASURY (JZARATE; DGLAZER, TPHILLIPS),OFAC
(RNEWCOMB)

E.O. 12958: DECL: 11/18/2014
TAGS: KTFN EFIN PREL PTER SP
SUBJECT: TERRORISM FINANCE DISCUSSIONS WITH GOS TREASURY
OFFICIALS

REF: (A) STATE 244943 (B) STATE 242611
C O N F I D E N T I A L MADRID 004415

SIPDIS

STATE PASS EB/ESC/TFS (BSTEPHENSON),S/CT (TKUSHNER),
NEA/ARP (TWILLIAMS),NEA/ELA (DBARON),IO/PHO (APEREZ),NSC
(MRUPPERT),TREASURY (JZARATE; DGLAZER, TPHILLIPS),OFAC
(RNEWCOMB)

E.O. 12958: DECL: 11/18/2014
TAGS: KTFN EFIN PREL PTER SP
SUBJECT: TERRORISM FINANCE DISCUSSIONS WITH GOS TREASURY
OFFICIALS

REF: (A) STATE 244943 (B) STATE 242611

1.(C) Summary: GOS Treasury officials lauded cooperation with
the U.S. on terrorism finance issues. Within the Financial
Action Task Force (FATF) context (see refs A and B),they
wanted more background information on why the U.S. did not
want to establish monitoring mechanisms to track financial
flows of less than $3,000. Information from Treasury on this
would be useful in our discussions with GOS officials -
please e-mail Carl Schonander at Schonanderce@state.gov with
such information if it is available. End Summary


2. (U) EconCouns and EconOffs met with Treasury and Financial
Policy Director General Belen Romana Garcia and other
Treasury officials on 11/17/04 to discuss terrorism finance
issues. These officials, in addition to their primary remit
to combat money laundering, are responsible for implementing
terrorism finance designation decisions and for developing
policies on monitoring terrorism financial flows. They
reported that they had good cooperation with the U.S. within
the Financial Action Task Force (FATF),which Spain co-chairs
with the U.S. Treasury Department's Daniel Glazer. However,
there was one area of disagreement. The EU apparently
believes financial flows of less than $3,000 should be
tracked, whereas the U.S. does not because according to the
Spaniards we do not want to impede worker remittances. The
GOS officials said though that they thought this issue could
be worked out within the FATF.


3. (C) EconOff briefed Belen Romana and her staff on the
substance of the meeting between Assistant Secretary Wayne
and Dutch Foreign Ministry Advisor Wouter Jurgens (ref A).
They were unaware of the upcoming November 29-30 case-based
terrorism finance workshop. They were interested in the EU's
intention to work especially with Maghreb countries and
Indonesia to implement the FATF Special Recommendation IX on
cash couriers. Belen Romana said that the recommendation was
not technically difficult to implement but would require
political will to implement in many nations.


4. (U) The GOS officials said that the implementing
regulations for Spain's new terrorism finance law were still
being drafted. The law allows the GOS to block assets
without UN or EU authorization. However, fearing adverse
litigation, the GOS has not yet used this new authority.
Belen Romana said that when the GOS is pre-notified, her
office takes about a week to find out what assets are being
held by the designee(s). She said she hoped to be able to
obtain this information in a few days but added that, of
course, the GOS could not actually block assets in the
absence of a legally valid designation.


5. (U) Comment: We sensed real commitment on the part of
these highly qualified civil servants to combat terrorist
financing. We would certainly recommend their participation
in appropriate terrorist financing workshops and other
events.
ARGYROS