Treasury Official Sparks Interest in

UNCLAS SECTION 01 OF 02 ANKARA 007440 SIPDIS SENSITIVE SIPDIS TREAS FOR OFAC (RWERNER),FINCEN (MMELANCON),EOTFFC (POBRIEN) and (RLEBENSON, JSERAFINI),OIA (JGARDNER) and/or (MLEAVITT) EUCOM FOR JIACG (MPLEHN) E.O. 12958: N/A TAGS: EFIN KTFN PTER TU SUBJECT: Treasury Official Sparks Interest in Designations REF: A) ANKARA 5635, B) ANKARA 5448 ¶1. (SBU) SUMMARY: IN A FOLLOW-UP TO TREASURY U/S LEVEY'S VISIT IN JUNE AND SUBSEQUENT MEETINGS AND LETTERS, U.S. TREASURY OFFICIAL CHRISTOPHER BURDICK MADE A PRESENTATION TO GOT OFFICIALS ON TERRORIST FINANCE DESIGNATIONS ON DECEMBER 13. THE MEETING WAS WELL- ATTENDED BY AN INTERAGENCY GROUP OF GOT OFFICIALS RESPONSIBLE FOR TERRORISM FINANCE. THE OFFICIALS SHOWED A LIVELY INTEREST IN DESIGNATIONS AND WE HAVE SINCE HEARD THE HEAD OF THE ANTI-FINANCIAL CRIME AGENCY IS INTERESTED IN TURKEY ESTABLISHING A DESIGNATIONS CAPABILITY. END SUMMARY. -------------- TURKS ENGAGED -------------- ¶2. (SBU) AS PROPOSED IN U/S LEVEY'S RECENT LETTER TO FINANCE MINISTER UNAKITAN, U.S. TREASURY OFFICIAL CHRISTOPHER BURDICK MADE A PRESENTATION ON TERRORISM FINANCE DESIGNATIONS DECEMBER 13 TO AN INTERAGENCY GROUP OF GOT OFFICIALS. THE GROUP WAS CHAIRED BY GENC OSMAN YARASLI, THE PRESIDENT OF MASAK, THE TURKISH ANTI- FINANCIAL CRIME AGENCY WHICH HAS THE LEAD ON TERROR FINANCE. DESPITE YARASLI HAVING EARLIER CITED A PACKED CALENDAR, HE PERSONALLY ATTENDED ALONG WITH ONE OF HIS DEPUTIES, NUMEROUS MASAK STAFF, AND EXPERTS FROM THE MOJ, MFA, AND POLICE. ¶3. (SBU) YARASLI AND HIS COLLEAGUES WERE ENGAGED THROUGHOUT THE PRESENTATION. THEY ASKED NUMEROUS QUESTIONS AND WERE VERY INTERESTED IN THE TOPIC. MASAK DEPUTY PRESIDENT ENDER TOSUN LATER TOLD US YARASLI IS INTERESTED IN PURSUING TURKEY SETTING UP THE ABILITY TO DESIGNATE DOMESTICALLY. (CURRENTLY, TURKEY ONLY DESIGNATES TERRORIST FINANCIERS LISTED UNDER UN SECURITY COUNCIL RESOLUTION 1267. IT HAS NO SYSTEM FOR ANALYZING AND DOMESTICALLY DESIGNATING TERRORIST FINANCIERS ON ITS OWN.) ¶4. (SBU) BURDICK, IN HIS PRESENTATION WENT OVER THE RATIONALE BEHIND DESIGNATIONS, INTERNATIONAL AGREEMENTS RELATING THERETO, AND THE U.S. DESIGNATIONS SYSTEM. -------------- QUESTIONS ON APPEAL SYSTEM, LEGAL AUTHORITY -------------- ¶5. (SBU) GOT PARTICIPANTS, INCLUDING YARASLI, QUESTIONED BURDICK REPEATEDLY ON THE U.S. LEGAL FRAMEWORK AUTHORIZING EXECUTIVE BRANCH OFFICIALS TO DESIGNATE, AS WELL AS ON THE PROCESS FOR DE-LISTING. THEY SEEMED PARTICULARLY CONCERNED WITH THE POTENTIALS FOR ABUSE OF THE AUTHORITY BY GOVERNMENT OFFICIALS. RATHER THAN A CRITICISM OF THE U.S. SYSTEM, THIS REFLECTS A PARTICULARLY TURKISH MINDSET AND "INSPECTION" MENTALITY, AS WELL AS A HISTORY OF ABUSE OF OFFICE. IN ORDER TO INSTITUTE SUCH A SYSTEM IN TURKEY, THE GOT WOULD HAVE TO EXPLAIN HOW SUCH RISKS ARE ADDRESSED. ¶6. (SBU) POST WOULD APPRECIATE ADDRESSEES HELP IN ANSWERING THE GOT'S QUESTIONS: BEGIN QUESTIONS: ¶1. What U.S. laws affect U.S. banks holding correspondent accounts by foreign banks of designated parties? ¶2. Interagency Process: What policy documents are available laying out the interagency review process? Who are the players? What legal instruments establish the interagency elements that review a designation and give authority to designate? ¶3. Litigation: When can a designated party sue? In which court? When can a foreign party sue? What form of compensation is available to mis-designated parties? Can a party sue once de-listed? How many names have been designated since the inception of the program, and how many de-listed? ANKARA 00007440 002 OF 002 ¶4. Civil Servants: What protections are in place to prevent civil servant abuse of the system? Can a civil servant's employment be terminated for mis-designating a party? -------------- Comment -------------- ¶7. (SBU) Post thanks Treasury for sending Mr. Burdick to Ankara. If MASAK's newfound interest in designations is confirmed, the visit will mark a substantial advance in GOT officials' approach to combating terrorism finance. Wilson