OTTAWA: COMBATING WMD PROLIFERATION VIA FINANCIAL

S E C R E T OTTAWA 003204

SIPDIS

NOFORN

STATE FOR EB/ESC/TFS (JEAN CLARK),S/CT (TODD KUSHNER),
INL/C/CP (STEVEN PETERSON),IO/PSC (BETSY FITZGERALD),AND
WHA/CAN
NSC (KEMERSON)

E.O. 12958: DECL: 12/30/2015
TAGS: PARM PREL MNUC EFIN CA
SUBJECT: OTTAWA: COMBATING WMD PROLIFERATION VIA FINANCIAL
INTELLIGENCE UNITS

REF: STATE 158275

Classified By: Wendy Moore, Economics Counselor, Ottawa. Reason: 1.4(
e).

Classified By: Wendy Moore, Economics Counselor, Ottawa.
Reason: 1.4(e).


1. (C/Noforn) Foreign Affairs Canada Nuclear
Non-proliferation officer Colin Smith has provided
an update on implementing reftel proposals but
warned that "bureaucratic inertia" and the need for
legislative amendments will delay progress. He
confirmed that all elements of the government with a
stake in the issue have been made aware of the contents
of the demarche and legal advisors have explored,
and ruled out, the possibility of taking action under
current legal constructs. He noted that one possible
law, the Special Economic Measures Act of 1992,
implemented to sanction Zimbabwe, permits action to
prevent "a grave threat to international security."
However, the Supreme Court ruled against the one attempt to
actually invoke the law against Zimbabwe, and FAC
legal advisors do not believe it would be successful in
this case.

Piggy-backing on the legislative review
--------------


2. (C) Fortuitously, Canada's Anti-Money
Laundering/Anti-Terrorist Financing legislation is
undergoing Parliamentary review, providing an opportunity
to insert the amendments necessary to expand the powers
that enable the GOC to act against terrorist financing to
permit similar action against WMD proliferation. In
addition, a meeting is planned at the DG level in coming
weeks that will focus on the "significant change" in
perspective by non-proliferation policy makers in
establishing the executive basis for action against WMD
proliferators.


3. (S/Noforn) Comment: This will be a slow process. We
have made sure it is on the GOC radar screen and will be
monitoring revision of the legislation to make sure this
issue stays in play. Smith welcomed our standing offer to
"intercede," as might be necessary, with the appropriate
government Department to expedite this process. END COMMENT.

Visit Canada's Classified Web Site at
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WILKINS