TERRORIST FINANCE: SINGAPORE'S ABILITY TO COOPERATE

C O N F I D E N T I A L SINGAPORE 000760

SIPDIS

STATE FOR EB/ESC/TFS DNELSON; S/CT TKUSHNER; IO/PSC
JSCHWEITZER, EB/EPPD CTHOMPSON
TREASURY FOR JZARATE
OFAC FOR RWERNER

E.O. 12958: DECL: 03/15/2015
TAGS: KTFN KVPR EFIN PTER ETTC PREL CVIS SN
SUBJECT: TERRORIST FINANCE: SINGAPORE'S ABILITY TO COOPERATE

REF: A) STATE 32688 B) STATE 36867 C) SINGAPORE 724
D) 04 SINGAPORE 784 E) 04 SINGAPORE 3540

Classified By: Economic/Political Counselor Laurent
Charbonnet. Reason: 1.4 (b) and (d)


1. (U) This message responds to Ref A's questions concerning
Singapore's ability to cooperate in disrupting terrorism
financing.


2. (U) AMOUNT OF ASSETS FROZEN, FORFEITED OR SEIZED: To date,
Singapore has not identified any assets in Singapore of
persons pursuant to UNSCR Resolutions 1267 and 1373.


3. (C) IMPEDIMENTS TO CO-SPONSORING DESIGNATIONS: Singapore
has yet to co-sponsor any designations of terrorists to the
UN 1267 Sanctions Committee, although Post recently submitted
Ref B's request that Singapore consider doing so for certain
Jemaah Islamiyah (JI) members. As Ref C suggests,
Singapore's willingness to co-sponsor designations may depend
in part on what steps its neighbors -- particularly Malaysia
and Indonesia -- are planning to take. Singapore has opposed
past USG proposals to include JI detainees in Singapore on
the UN list, claiming that such actions would undermine the
government's strategy of gaining the trust and cooperation of
the detainees in identifying, detecting and detaining
additional JI terrorists, both in Singapore and abroad. It
has, however, strongly supported designating senior JI
leaders such as Bashir, Hambali, and others.


4. (U) USG TRAINING AND TECHNICAL ASSISTANCE: Singapore
regularly accepts USG training and technical assistance,
including assessments of its training needs. It has
co-sponsored CT finance workshops with us, and hosts a number
of annual CT-related conferences. As recommended in Ref D,
we should encourage Singapore to take a more proactive
approach by offering its training assistance to foreign
enforcement authorities in the region.


5. (C) TERRORIST FUND RAISING/BANKING SERVICES RISK: Risk
Level - Medium. As this year's INCSR submission (Ref E)
notes, Singapore's position as a significant financial and
investment center, coupled with bank secrecy laws and the
lack of routine currency reporting requirements, make it an
attractive destination for terrorist organizations. The risk
that terrorists will use Singapore either for significant
fund raising or banking services is mitigated by the
government's implementation of a strong CT finance legal
framework; the United Nations Act of 2001 and the Terrorism
(Suppression of Financing) Act and its implementing
regulations provide the government adequate and effective
tools to take action against terrorists. Singapore is
currently considering revisions to its key AML/CFT
regulations for banks (and, thereafter, for other financial
institutions) that incorporate the revised FATF Forty
Recommendations, and the FATF's Special Recommendation Seven
on wire transfer reporting requirements. Once adopted, most
likely by mid year, the regulations' coverage is expected to
include terrorist financing activities.
LAVIN