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. ******************************************** Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** LEBARON