TERRORIST FINANCE: DUTCH HARAMAIN VETTING

S E C R E T THE HAGUE 000834 SIPDIS NOFORN STATE FOR EB/ESC/TFS(GLASS),S/CT(NAVRATIL), IO/PHO(APEREZ),EUR/PGI(LREASOR),INR/EC(BROOKS) TREASURY FOR JZARATE AND OFAC DIRECTOR NEWCOMB NSC FOR GARY PETERS JUSTICE FOR OIA/FRIEDMAN BRUSSELS FOR LEGATT E.O. 12958: DECL: 03/31/2009 TAGS: ETTC PTER NL EUN SUBJECT: TERRORIST FINANCE: DUTCH HARAMAIN VETTING REF: A. STATE 71982 ¶B. THE HAGUE 771 ¶C. STATE 62199 Classified By: Economic Counselor Richard Huff Reason 1.5(b) and (d) ¶1. (S/NF) We delivered demarche requested ref a to the MFA official acting as chairman of the Dutch interagency committee on designations. This official responded that the Netherlands not only would support the U.S. designation but plan a simultaneous designation under the Dutch national sanctions law to freeze any funds in local Haramain or Al-Aqil accounts. He requested close coordination on the timing of the U.S. designation to allow the Dutch designation to proceed simultaneously or with a minimal time delay. ¶2. (S/NF) Comment: Although no Dutch judge has ever overturned a blocking order effected by the national sanctions law, the GONL has a continual concern about its national sanctions law being vulnerable to challenge in local court. As a result, Dutch officials prefer to act under the umbrella of EU regulations. The Netherlands plans to employ its national sanctions law in this case because of the lag between U.S. designation, UN consideration, and implementation of a UN decision through EU regulation. Their willingness to freeze nationally is predicated on the assumption that the lag between U.S. designation and EU action will not be lengthy. Should Washington agencies develop information contrary to this assumption, we would appreciate being able to give the Dutch a heads up. SOBEL