Identifier
Created
Classification
Origin
05TELAVIV6872
2005-12-09 16:10:00
SECRET
Embassy Tel Aviv
Cable title:  

ISRAEL ON COMBATING WMD PROLIFERATION VIA

pdf how-to read a cable
This record is a partial extract of the original cable. The full text of the original cable is not available.
S E C R E T SECTION 01 OF 02 TEL AVIV 006872 

SIPDIS

E.O. 12958: DECL: 10/26/2015
TAGS: PARM PREL MNUC IS COUNTERTERRORISM
SUBJECT: ISRAEL ON COMBATING WMD PROLIFERATION VIA
FINANCIAL INTELLIGENCE UNITS

REF: STATE 158275

Classified By: Political Counselor Norm Olsen. Reasons: 1.4 (b, d).

S E C R E T SECTION 01 OF 02 TEL AVIV 006872

SIPDIS

E.O. 12958: DECL: 10/26/2015
TAGS: PARM PREL MNUC IS COUNTERTERRORISM
SUBJECT: ISRAEL ON COMBATING WMD PROLIFERATION VIA
FINANCIAL INTELLIGENCE UNITS

REF: STATE 158275

Classified By: Political Counselor Norm Olsen. Reasons: 1.4 (b, d).


1. (C) Responding to reftel demarche, Israeli MFA
Nonproliferation and Counterterrorism Department Director
Yehuda Yaakov told poloff December 4 that:

-- Israel continues to be interested in active participation
in the Proliferation Security Initiative (Proliferation
Security Initiative) and other means to counter WMD
proliferation;

-- The MFA held November 9 its first inter-agency
"brainstorming" session on PSI and using Financial
Intelligence Units (FIUs) to combat WMD proliferation;

-- The MFA intends to hold more such meetings in the future,
and will want to take advantage of the results of
expert-level U.S.-Israel counterproliferation talks scheduled
to take place in Washington on December 14. After those
talks, Yaakov and MFA Arms Control Director Alon Bar intend
to discuss a number of issues with USG officials on December
15, including Israel's role in PSI and counterterrorism (CT)
issues.


2. (C) Regarding Israel's national financial controls, Yaakov
said "unofficially" that it remains unclear whether current
Israeli legislation facilitates FIU involvement in the WMD
area. The MFA is urging further interagency exploration of
this issue, but Yaakov cautioned that this will take time and
might lead to an effort to modify existing CT legislation.


3. (U) The following laws and regulations provide the GOI
with the legal tools to combat money laundering and terror
finance:

-- The Prohibition on Money Laundering Law of August 2000,
which (a) covers money laundering offenses; (b) identifies
reporting institutions and describes their duties; (c)
established the Israel Money Laundering and Terror Financing
Prohibition Authority (IMPA); and (d) defines offenses.

-- The Combating Criminal Organization Law, which (a) defines
a criminal organization; (b) describes criminal organization
offenses; and (c) specifies felony and other offenses.

-- The Prohibition on Financing of Terror Law of October
2005, which (a) defines a terror organization and activist;
(b) explains how Israel's Ministerial Committee can declare a

person or organization as a terrorist entity; and (c) defines
terror finance offenses (to include rewarding the
perpetrators of terrorist acts, and failing to report
suspicious transactions).


4. (C) Israel's FIU -- Israel Money Laundering and Terror
Financing Prohibition Authority (IMPA) -- is responsible for
countering money laundering and terror finance under the
Prohibition on Money Laundering Law (5760-2000) passed in
August 2000. IMPA supports law enforcement investigative
efforts and fosters interagency dialogue and international
cooperation against domestic and international money
laundering and terror finance-related crimes. IMPA manages a
secure database of information provided by banks, insurance
companies and agents, provident funds, portfolio managers,
stock brokers currency service providers, customs and
Israel's tax authority, and other GOI and public open sources
of information. The following transactions are required by
law to be reported to IMPA:

-- cash transactions of 50,000 NIS (app. USD 10,000) or more;
-- international transfers of 1 million NIS (app. USD
200,000) or more;
-- Money service business (MSB) transactions of 50,000 NIS
(app. USD 10,000) or more;
-- customs declarations of 80,000 NIS (app. USD 16,000) or
more; and
-- any other unusual activity.


5. (C) On its own initiative and in response to requests,
IMPA shares information and analysis with Israeli law
enforcement agencies (e.g., the Israeli National Police,
Israeli Security Agency (Shin Bet) and Israel's tax
authority) and other FIUs worldwide. GOI officials say that
IMPA's investigative and information sharing bodies employ a
"filtering system" that balances the right to privacy with
the need for information, and promotes a climate of trust
between financial institutions and IMPA. IMPA also provides
Israeli policy-makers with strategic analyses of domestic and
international trends in money laundering and terror finance
crimes.


6. (S) GOI officials say the Palestinian Authority (PA) does
not have its own equivalent to IMPA, and claim that money
laundering and terror finance activities occur in the
PA-controlled West Bank and Gaza Strip. The GOI monitors
these activities through the Office of the Coordinator for
the Occupied Territories (COGAT) and military intelligence
assets. The Palestinian Monetary Authority (PMA) has a
financial follow-up unit (FFU),which it considers the
equivalent of an FIU. However, that unit does not yet have
the legal authority to freeze or confiscate funds, though the
PMA is drafting a presidential decree to give it such
authority. The U.S. Treasury Department, USAID and the
British government are planning to work jointly with the PMA
to develop the technical capabilities of its FFU. GOI
officials say that they would be willing to work with a PA
FIU.


7. (U) This cable was cleared with Consulate General
Jerusalem.
********************************************* ********************
Visit Embassy Tel Aviv's Classified Website:
http://www.state.sgov.gov/p/nea/telaviv

You can also access this site through the State Department's
Classified SIPRNET website.
********************************************* ********************
JONES