TERRORISM FINANCE: 2005 UPDATE NO. 2

C O N F I D E N T I A L TEL AVIV 001633

SIPDIS

DAVID NELSON IN EB/ESC/TFS; TODD KUSHNER IN S/CT; JOLEEN
SCHWEITZER IN IO/PSC; NEA/IPA; JUAN ZARATE IN TREASURY;
ROBERT WERNER IN OFAC; CAROL THOMPSON IN EB/EPPD

E.O. 12958: DECL: 03/18/2015
TAGS: EFIN PTER ETTC KTFN IS COUNTERTERRORISM ECONOMY AND FINANCE ISRAELI SOCIETY
SUBJECT: TERRORISM FINANCE: 2005 UPDATE NO. 2

REF: SECSTATE 32688

Classified By: Economic Counselor William Weinstein for reasons 1.4 (b)
and (d)

The following is a response to reftel request:


1. (U) No assets connected to the Taliban have been found in
Israel. No assets related to Usama bin Laden or the Al-Qaida
organization, and individuals or entities associated with
them, have been detected in Israel.


2. (U) There are no impediments for more robust cooperation
with the GOI on co-sponsoring designations. The GOI is very
supportive of actions to interdict terrorism finance.


3. (C) The GOI would likely be willing to accept USG
training and/or technical assistance to disrupt terrorism
financing, but it may also emphasize intelligence-sharing to
enhance its anti-terrorism financing regime. The GOI has
broad and comprehensive legislation in place that allows for
identifying, freezing, seizing, and forfeiting terrorist
finance-related assets. This includes:

--Legislation generally providing for the seizure of items
which were used, or which were about to be used, in the
commission of an offense, or given as payment for its
commission.

--Legislation specifically providing for the confiscation of
terrorist finance-related property: the Prevention of
Terrorism Ordinance (1948) and the Defense Regulations (State
of Emergency) (1945) contain specific provisions for
identifying, freezing, seizing, and forfeiting terrorist
finance-related assets.

--The Prohibition on Terrorist Financing Law, adopted by the
Israeli Parliament on December 29, 2004, provides additional
tools for such actions. This law also includes specific
references to acts of terrorism that have no connection to
Israel and further enhances Israel,s ability to provide
assistance to other countries in combating the financing of
terrorism.

The GOI, however, is appreciative of information on terrorist
finance networks, particularly when it relates to Palestinian
terrorist organizations such as Hamas and the Palestine
Islamic Jihad, and to Hizballah.


4. (C) Post would rank Israel at "medium" risk of being used
to raise or bank significant amounts of dollars for terrorism
financing. While the Taliban, Usama Bin Laden, and Al-Qaida
may not be present in Israel, many other terrorist
organizations such as Hamas, the Palestine Islamic Jihad, and
the Al-Aqsa Martyrs' Brigade are present and have extensive
charity networks. Recent investigations into money
laundering offenses suggest there may be some weaknesses in
the banking sector.

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KURTZER