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