BRAZIL: 2005 ANNUAL TERRORISM REPORT

UNCLAS SECTION 01 OF 02 BRASILIA 003277

SIPDIS

DEPT FOR S/CT AND TTIC

E.O. 12958: N/A
TAGS: PTER ASEC KCRM EFIN KHLS KPAO BR
SUBJECT: BRAZIL: 2005 ANNUAL TERRORISM REPORT

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Tri-Border Area
(Argentina, Brazil and Paraguay)
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(Please review with submissions from other TBA posts.)


1. The Tri-Border Area (TBA) -- where Argentina, Brazil and
Paraguay converge -- has been characterized as a regional hub
for Hizballah and HAMAS fundraising activities. However, the
region is more widely known as a center for arms and drug
trafficking, contraband smuggling, document and currency
fraud, money laundering, and the manufacture and movement of
pirated goods.


2. In December 2005, senior level U.S. officials attended a
meeting of the 3 1 Group of the Tri-Border Area, a security
mechanism established by the three TBA countries in 1998, and
to which the United States was invited in 2002. The 3 1
group serves as a continuing forum for fostering cooperation
and terrorism prevention among the four countries. At the
December, 2005 meeting, participants concluded that according
to available information, no operational acts of terrorism
have been detected in the Tri-Border Area. However,
international terrorist financing and money laundering with
roots in the TBA remain an area of heightened concern. The
parties agreed that, in the event that any activities are
detected that could contribute even indirectly to terrorists
acts, including their financing, they would cooperate to
deter such acts. They also agreed to conduct a concerted
effort to foster legitimate economic activity in the TBA.


3. Brazil, Argentina and Paraguay held a tripartite meeting
at Foz de Iguacu, Brazil October 26 and 27, 2005, at which
time the parties received the status of ongoing
Argentina-Paraguay joint patrols on border waterways. The
Brazil delegates noted that the Maritime Police Special Unit
(NEPOM) in Foz de Iguacu is operating regularly. The Finance
Intelligence Units of the 3 1 met in Asuncion, Paraguay
October 10-12, 2005 and established a technical working group
to formulate a strategic analysis of trends in the TBA.

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BRAZIL
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4. Brazil continues to extend practical and effective
support for US counter-terrorism efforts. For example, the
Government of Brazil diligently pursues investigative leads
provided by US intelligence, law enforcement and financial
agencies regarding terrorist suspects. The GOB has accepted
USG training and technical assistance and remains interested
in participating in additional programs. The U.S. Embassy in
Brasilia facilitated the provision of an anti-money
laundering course with an anti-terror finance component to
Brazilian Federal Police in 2004.


5. Although the Government of Brazil is committed to the
fight against terrorism, lack of resources and inadequately
trained personnel hamper its response. The United States
continues to work with Brazil in several bilateral,
multilateral and international fora to identify groups and
individuals suspected of possible links to terrorist groups.
Specialists from the United States work with elements of the
Brazilian Government responsible for combating terrorism,
including the Federal Police and the Brazilian Intelligence
Service. Brazil is increasingly capable of monitoring
domestic financial operations and effectively utilizes its
financial intelligence unit, the Financial Activities
Oversight Council (COAF),to identify possible funding
sources for terrorist groups. Recent bilateral assistance
and training provided by the USG to COAF emphasized upgrades
to its database and data collection mechanism. In January
2005, the Brazilian Federal Police inaugurated a Regional
Field Office in Foz do Iguacu, Parana, to coordinate its
intelligence and enforcement efforts in the TBA.


6. Through the COAF, Brazil has carried out name checks for
persons and entities on the UNSCR 1267 and 1373 terror
finance lists, but has so far not found any assets, accounts
or property in the names of persons or entities on the UN
terror-finance lists. Under current Brazilian law the GOB
would require a judicial order to freeze terrorist assets.


7. Since taking office in January 2003, Brazilian President
Lula da Silva has vigorously condemned terrorism. The Lula
administration, however, does not acknowledge the presence of
terrorist groups on Brazilian soil and insists that no
identifiable terrorist incidents have occurred in the
country. In 2003, the Brazilian Chamber of Deputies passed a
bill on cyber-crime aimed at preventing terrorist hack
attacks, but the bill continues to languish in the Brazilian
Senate.


8. There are no significant impediments to the prosecution
or extradition of suspected terrorists by Brazil, although
Brazil's legal procedures are often tedious and protracted.
Brazilian law prohibits the extradition of Brazilian citizens
and allows only very measured and careful consideration for
the extradition of naturalized citizens (for previous crimes
and drug trafficking only) and foreigners (for all but
ideological or political crimes). On August 24, 2005, the
Brazilian Federal Police, in cooperation with Interpol agents
in Brazil, arrested Colombian Revolutionary Armed Forces
(FARC) "spokesman" Francisco Antonio Cadena Collazos under an
international order for his capture.


9. In May 2004, the Government of Brazil at the initiative
of the Chief of the Presidency's Institutional Security
Office created a technical team composed of representatives
from five key ministries and the three branches of the Armed
Forces to formulate a national policy to combat terrorism.
The group delivered to the President its recommendations
which will serve as the basis for future legislation. This
bill will call for the establishment of a national authority
for combating terrorism.


10. In November 2004, President Lula and Russian Federation
President Vladimir V. Putin issued a joint declaration
calling for compliance with the United Nations Resolution
1540 and 1566. These resolutions deal with the prevention of
access to weapons of mass destruction by non-state agents and
with the threats to international peace and security raised
by terrorism. President Lula also declared himself in favor
of entering negotiations on a Universal Convention on
International Terrorism and the International Convention to
Fight Acts of Nuclear Terrorism, all within the framework of
the United Nations. Brazil has signed all of the fourteen
current UN conventions on terrorism and its legislature has
ratified thirteen. The ratification process for the
fourteenth instrument is underway.

CHICOLA