TERRORISM FINANCE: 2005 UPDATE NO.2: AUSTRIAN

C O N F I D E N T I A L VIENNA 001075

SIPDIS

DEPT FOR EB/ESC/TFS (DNELSON),S/CT (TKUSHNER),IO/PSC
(JSCHWEITZER),EB/EPPD (CTHOMPSON),AND EUR/AGS
PLEASE PASS TO TREASURY (JZARATE) AND OFAC (RWERNER)

E.O. 12958: DECL: 04/04/2015
TAGS: KTFN KVPR EFIN PTER ETTC PREL CVIS AU
SUBJECT: TERRORISM FINANCE: 2005 UPDATE NO.2: AUSTRIAN
RESPONSE

REF: STATE 32688

Classified By: ECONOMIC-POLITICAL COUNSELOR GREGORY E. PHILLIPS FOR
REASONS 1.4 (B) AND (D).


1. (C) Following is keyed to information requested in reftel:

A) Amount of assets frozen, forfeited or seized by host
government pursuant to UNSCR Resolutions 1267 and 1373; the
legal authority under which the action was taken; and what
additional domestic actions have been taken against the
designated parties:

--Austrian authorities have not frozen, forfeited, or seized
any assets pursuant to UNSCR 1337. Authorities have frozen
minor amounts pursuant to UNSCR 1267, but because police are
still investigating several of these cases, our GoA contacts
would not provide exact figures.

--The EU Council has transposed both UNSCR 1267 and UNSCR
1373 into regulations, so both are directly and immediately
applicable to the GoA, as well as Austrian entities and
citizens.

B) What impediments exist for more robust cooperation with
your host government on co-sponsoring designations?

--We do not see any impediments for a more robust
cooperation. The GoA has been very responsive to all our
requests and extremely cooperative with USG agencies on
terrorist financing issues.

C) Is your host government willing to accept USG training and
technical assistance, including an assessment of training
needs? In your view, what are your host government's
priority training and technical assistance needs with regard
to the development and/or enhancement of their anti-terrorist
financing regimes in general and their sanctions program in
particular?

--Austria is a highly developed country, which uses
state-of-the-art technology to fight crime, including
terrorist financing. GoA personnel in this field are very
competent. We believe the USG should keep appropriate GoA
officials aware of new developments in the fight against
terrorist financing. However, we believe any USG training
should be well-targeted and specific, rather than
across-the-board.

--One area where Austria might benefit from USG or
third-country experience is better vetting, control and
monitoring of non-profit organizations.

D) How would you rank your host country in terms of risk that
it will be used as a site either for significant fund raising
or for significant banking services for terrorists ("High,"
"Medium," or "Low")?

--We believe there is a medium risk that terrorists would use
Austria as a site for significant fund raising. The GoA has
implemented a comprehensive set of regulations against
terrorism financing. The Criminal Code contains a category
entitled "Financing Terrorism," which foresees a prison
sentence of 6 months to five years. Nevertheless, Austria
has loose regulations on the approximately 100,000 charities
and other non-profit organizations, including religious
associations, registered in Austria. There are no regular or
routine checks on non-profit organizations after they
register. These entities could be vulnerable to misuse by
criminal and terrorist organizations and their supporters.

--We believe there is a medium risk that terrorists would use
Austrian banking services to transfer funds. The GoA
tightened provisions against terrorism by implementing the
FATF Special Recommendations on Terrorist Financing, and by
amending the Banking Act, Criminal Code, Criminal Procedures
Code, Gambling Act, Law on Attorneys, Law on Notaries, and
the Commercial Code. However, Austria's banking system, like
the financial system of any developed nation, could be
attractive for terrorist organizations to effect financial
transfers.
Brown