(S/NF) TERRORIST FINANCE: DUTCH SUBMITTING MEK

S E C R E T THE HAGUE 001042

SIPDIS

NOFORN

STATE FOR EB/ESC/TFS (GLASS),S/CT(NAVRATIL),INR/EC
(BROOKS)
TREASURY FOR EOTF/ZARATE AND OFAC/NEWCOMB
JUSTICE FOR OIA/FRIEDMAN
FBI FOR TERRORIST FINANCING TASKFORCE
NSC FOR PETERS
BRUSSELS FOR USEU AND LEGATT

E.O. 12958: DECL: 04/22/2011
TAGS: ETTC PTER IZ NL EUN
SUBJECT: (S/NF) TERRORIST FINANCE: DUTCH SUBMITTING MEK
FRONT ORGANIZATION TO EU FOR DESIGNATION

REF: A. THE HAGUE 83

B. 03 THE HAGUE 2457

Classified By: Economic Counselor Richard Huff. Reason 1.5(d)

(S/NF) Dutch officials told us 4/23 that the GONL has made a
firm decision to submit Stichting SIM (Society for Solidarity
with the Iranian People) to the EU for designation as an
alias of Mujahedin-e Khalq. The formal submission will be
made within the next two weeks once the paperwork receives
final clearance. The Dutch are pursuing designation through
the EU because they believe the EU regulation is more
difficult to challenge in court than their domestic sanctions
law. They indicate that SIM does not appear to have
operations outside the Netherlands and that its financial
ties to MEK are maintained by private individuals carrying
cash. Dutch law enforcement officials do not believe they
have enough evidence to win a criminal case against SIM but
do have enough information to support an EU designation.
These officials pledged they would ensure the EU prenotified
the USG before announcing any formal designation.
SOBEL