TERROR FINANCE - BRAZIL ASKS FOR DELAY, COORDINATION ON

S E C R E T BRASILIA 002533 SIPDIS SIPDIS NOFORN NSC FOR T.HINNEN TREASURY FOR TFI - HEFFERNAN TREASURY FOR FINCEN - SHOWELL STATE FOR S/CT - NOYES AND V.PALMER STATE FOR WHA - D. MCCARTHY/C.CROFT STATE FOR EB/ESC - DAS SIMONS AND JEAN CLARK E.O. 12958: DECL:12/01/2026 TAGS: KTFN EFIN PTER SNAR ETTC PREL BR SUBJECT: TERROR FINANCE - BRAZIL ASKS FOR DELAY, COORDINATION ON TBA DESIGNATIONS REF: STATE 192347 Classified by Deputy Chief of Mission Phillip T. Chicola, Reasons 1.4 (B) and (D). ¶1. (S) Per reftel, Emboffs, ORA, Legatt and DEA delivered the TBA designations pre-notification to the Foreign Ministry, financial intelligence unit, Brazilian Intelligence Agency (ABIN) and law enforcement agency counterparts on November 30. ¶2. (S) In a follow-up meeting December 1, Foreign Ministry General Coordinator for the Combat Against Illicit Transnational Activities Virginia Tonniatti made the following points to Emboffs: -- the GoB and its counterparts in Paraguay and Argentina take seriously the common obligation that all countries have to fight terrorism and its financing; -- there is a common framework in the region (the three plus one mechanism) for working together to address such threats; -- the GoB is treating the information received seriously and the foreign ministry had immediately asked the federal police and ABIN to investigate in order to verify and clarify the USG information; -- in the Brazilian system, a judicial order is necessary to freeze assets and obtaining one requires that a formal investigation be opened; -- the GoB was "surprised" that the USG would plan to publish the list unilaterally on December 6 without first having coordinated on the information with its partners through the three plus one mechanism; -- there was simply not sufficient time for the GoB to advance an investigation to the point of being able to ask a judge to freeze assets by December 6; -- A unilateral USG designation on December 6 would be counterproductive, for just as the USG was asking that the designations be kept confidential to avoid asset flight, the GoB required that the information remain out of the public realm in order effectively to pursue its own investigation. SOBEL