TERRORIST FINANCE: POST COMMENTS ON PCC-APPROVED

S E C R E T KUWAIT 003774

SIPDIS

STATE FOR EB/ESC/TFS IKRUM, S/CT TKUSHNER, NEA/ARPI
AMISENHEIMER, NEA/ARPI RSMYTH, NEA/ELA SSONTY, NEA/IPA
GLOGERFO, EUR/PGI LREASOR, IO/PSC BFITZGERALD
NSC FOR JZARATE
TREASURY FOR DGLASER, OFAC DIRECTOR RWERNER
JUSTICE FOR JSILVERWOOD

E.O. 12958: DECL: 08/23/2015
TAGS: EFIN ETTC KTFN PTER CVIS KVPR KU
SUBJECT: TERRORIST FINANCE: POST COMMENTS ON PCC-APPROVED
GULF TERRORIST FINANCE STRATEGY

REF: KUWAIT 2927 AND PREVIOUS

Classified By: Ambassador Richard Lebaron: Reasons 1.4 (b) and (d)


1. (S) Post has reviewed the PCC-adopted version of the Gulf
Terrorist Finance Strategy paper. While Post concurs with the
strategy's overall objectives, the paper paints an incomplete
and bleak picture of the ground realities in Kuwait (see
reftel).


2. (S) It is important to point out that:

--The GOK remains a strong player in establishing the
MENA/FATF.

--Kuwaiti commercial banks have in place excellent controls
with strong Central Bank supervision.

--The GOK continues to cooperate on customs enforcement with
US experts to target money laundering and cash controls.

--There are GOK systems at work to monitor charities,
resulting in the closure of unauthorized charity kiosks.

--There is an effort underway to significantly strengthen the
current AML law to criminalize terrorist finance; permit
financial institutions to refer suspicious activity reports
directly to the Financial Intelligence Unit (FIU); allow the
FIU to share intelligence directly with other FIUs; and more
precisely define money laundering.

--Moreover, the USG has offered and the GOK has accepted USG
training (DOJ/OPDAT) to strengthen their policies and
institutions.


3. (S) While more remains to be done in Kuwait, these and
other important accomplishments cannot be disregarded as we
move forward on the implementation of the strategy.






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LEBARON