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.

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TURKS ENGAGED
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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.

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QUESTIONS ON APPEAL SYSTEM, LEGAL AUTHORITY
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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?

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Comment
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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