TERRORISM FINANCE: TALIBAN UAE STRATEGY

S E C R E T ABU DHABI 003782 SIPDIS NOFORN SIPDIS STATE FOR S/CT ECROWE, NEA/ARP E.O. 12958: DECL: 09/21/2016 TAGS: KTFN PTER EFIN AE SUBJECT: TERRORISM FINANCE: TALIBAN UAE STRATEGY REF: STATE 145269 Classified By: Classified by Ambassador Michele J. Sison for reasons 1. 4 (b & d). ¶1. (S/NF) Post appreciates the opportunity to comment on reftel strategy for disrupting external financing to the Taliban. We believe that the draft background paper covers the issue in a comprehensive fashion. In the UAE specifically, we would propose using the existing Joint Terror Financing Coordinating Committee as our lead mechanism for implementing a strategy of disrupting external financing to the Taliban. We would additionally use opportunities for Ambassador and/or senior Washington officials to raise USG concerns with senior UAE officials including the Central Bank Governor, Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed Al-Nahyan, and UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan. In addition, our DEA attaches are working closely with the UAEG to disrupt drug and drug money flows through the UAE. As a key part of our interaction with the UAEG we would recommend noting that the UAE has special operations troops operating in Afghanistan -- and thus it is in its own interest to disrupt funding to the Taliban. ¶2. (S) On September 12, during the 3rd meeting of the JTFCC, Treasury A/S O,Brien raised U.S. concerns with cash flows to the Taliban. Central Bank Governor Suweidi said that the UAE was ready to cooperate and explained that the UAE Financial Intelligence Unit (FIU) had trained the Afghan FIU and is looking to sign a memorandum of understanding with its Afghan counterpart. The next round of the JTFCC is tentatively proposed for January 2007. We would propose following up on the issue during that meeting. The Governor has accepted an invitation to attend the second U.S. - MENA dialogue on anti-money laundering and counter-terror finance in New York from December 11-13. This visit would be an excellent opportunity for senior Treasury officials to meet with him and press our strategy of disrupting financing to the Taliban. ¶3. (C) We are currently working with the UAE to have it accept a DHS/ICE-proposed operation to target cash couriers in three UAE airports (Abu Dhabi, Dubai, and Sharjah). Under the terms of the proposal, the DHS/ICE agents would play a strictly advisory role. Post plans to present the Central Bank with a paper describing the differences between U.S. and UAE regulations on cash couriers on September 26. Given the apparent importance of cash couriers in funding the Taliban, this program could prove effective in disrupting funding, should the UAE agree to implement it. ¶4. (C) Our DEA Attaches are focused on investigating the financial flows associated with the Afghan narcotics trade. The DEA Attaches are coordinating closely with the UAE to combat drugs and drug money laundering activities related to Afghanistan. In July, DEA attaches from the UAE and Afghanistan met with the head of the UAE Drug Enforcement Administration, Ministry of Interior, Dubai Police Department, Sharjah Police Department and the UAE Drug Liaison Officer assigned to Islamabad, Pakistan. UAE officials reported that they are willing to share information on the numerous heroin couriers, most of whom were traveling from Afghanistan and Pakistan when they were interdicted. SISON