Identifier
Created
Classification
Origin
06BRUSSELS1098
2006-03-30 15:34:00
CONFIDENTIAL
Embassy Brussels
Cable title:  

TREASURY OFFICIALS MEET WITH BELGIAN AND EU

Tags:  KTFN EFIN PTER PREL PGOV BE EU 
pdf how-to read a cable
VZCZCXYZ0013
RR RUEHWEB

DE RUEHBS #1098/01 0891534
ZNY CCCCC ZZH
R 301534Z MAR 06
FM AMEMBASSY BRUSSELS
TO RUEHC/SECSTATE WASHDC 1494
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNFB/FBI WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEANQT/FINCEN VIENNA VA
C O N F I D E N T I A L BRUSSELS 001098 

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EUR/UBI: E.FALLS

E.O. 12958: DECL: 03/31/2016
TAGS: KTFN EFIN PTER PREL PGOV BE EU
SUBJECT: TREASURY OFFICIALS MEET WITH BELGIAN AND EU
OFFICIALS ON TERRORISM FINANCE

REF: A. BRUSSELS 1022

B. BRUSSELS 539

C. BRUSSELS 346

Classified By: ECONCOUNS T.L.ROBL, REASONS 1.5 (B) AND (D)

C O N F I D E N T I A L BRUSSELS 001098

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EUR/UBI: E.FALLS

E.O. 12958: DECL: 03/31/2016
TAGS: KTFN EFIN PTER PREL PGOV BE EU
SUBJECT: TREASURY OFFICIALS MEET WITH BELGIAN AND EU
OFFICIALS ON TERRORISM FINANCE

REF: A. BRUSSELS 1022

B. BRUSSELS 539

C. BRUSSELS 346

Classified By: ECONCOUNS T.L.ROBL, REASONS 1.5 (B) AND (D)


1. (C) SUMMARY: During a March 14 meeting at the Belgian
Ministry of Foreign Affairs (MFA),Treasury Assistant
Secretary (A/S) for Terrorism Financing Patrick O'Brien met

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with Belgian officials to explain the U.S. process to
designate financiers of terrorists or terror groups.
O'Brien's visit occurred as Belgium neared the final
legislative stages in the creation of an interagency body,
OCAM/CODA that will analyze internal and external threats to
Belgian interests (ref A). The Belgians inquired about the
Global Relief Fund (GRF) case (refs B and C),but post
understands that at present no further information to share
with GOB is available. A/S O,Brien also met with Jonathan
Faull, Director General of Justice, Liberty and Security at
the European Commission to discuss non-profit organizations
and terrorism finance. Faull invited the U.S. to participate
in a conference on this issue that the Commission will be
hosting October 9-10 in Brussels. END SUMMARY


2. (SBU) Participants in the March 14 meeting at the Belgian
MFA were as follows:

Belgium

Ministry of Foreign Affairs
-Jan Devadder, Legal Advisor
-Kris Van Oostende, Deputy Legal Advisor
-Mark Van De Vreken, Advisor, Cabinet of Minister for
Foreign Affairs
-Paul Rietjens, Legal Advisor, Permanent Representation of
Belgium to the EU
-Veronique Petit, First Secretary, Counterterrorism Unit,
MFA

Other Belgian Agencies
-Jean-Pascal Thoreau, Federal Magistrate handling financial
crimes (including terrorist financing)

-Beatrice Detiste, Financial Specialist, Treasury

-Jean-Claude Delepiere, Director, CTIF/CFI (Belgian
Financial Intelligence Unit)

-Henri Vantieghem, Diplomatic Advisor to the Minister of
Justice


US

Department of Treasury:
-Patrick O'Brien, Assistant Secretary for Terrorism
Financing
-Justin Serafini, Policy Advisor
-Chris Burdick, Sanctions Advisor (Stuttgart)

Embassy Brussels
-Terri Robl, EconCouns, Terrorist Financing Coordinating
Officer (TFCO)
-Fred Wong, Legatt
-Moulik Berkana, Econoff, Deputy TFCO
-Greg Rupert, Assistant Legatt, The Hague


3. (C) A/S O'Brien explained how a U.S. interagency group,
known as the Terrorism Finance Policy Coordination Committee,
decides how to proceed in terrorism cases, including various
enforcement, policy, and intelligence responses. When
designations are appropriate, all information is collected
(including classified and unclassified information) in an
administrative record maintained by the Office of Foreign
Asset Control (OFAC). Designations may be done in
conjunction with other actions, including diplomatic actions
and criminal procedures.


4. (SBU) O,Brien summarized and compared an independent
(administrative) capacity to freeze assets with the process
of developing information to be used in prosecuting a
criminal case. The standard of evidence for designation is
different than that in a criminal proceeding and can include
classified information that can be reviewed by a judge ex
parte and in camera. Nonetheless, before designation the
administrative record is reviewed by lawyers at OFAC and the
U.S. Department of Justice (USDOJ) to ensure legal

sufficiency for designation. Upon designation, a public
statement is made giving the reason for designation. In
cases of UNSCR 1267 designations, a statement of the case is
presented to the 1267 Committee and G7 members. Due process
in designations is maintained by the Administrative
Procedures Act that allows for an administrative and judicial
appeal process. First, a designated entity can apply to OFAC
for de-listing, which leads to an administrative review. If
the designated person is denied de-listing by OFAC, he/she
can challenge his/her designation through a judicial review
in U.S. Federal District Court.


5. (C) A/S O'Brien highlighted that interagency coordination
is a key requirement in counter terrorism finance. The
Belgians expressed particular interest in these aspects
because the GOB is currntly constituting its own interagency
body (OAM/CODA in French and Dutch acronyms) charged wth
threat analysis (ref A). Although not yet operative, part of
the mandate of the interagency group may involve handling
listings on the national level, rather than EU or UN; details
are still being arranged.


6. (U) O,Brien also explained OFAC licensing procedures,
which permit the designated individual or group access to
some funds for living expenses or other permitted purposes.


7. (C) The discussion briefly touched on the Global Relief
Fund case (refs B and C). As reported in ref B, Belgium has
offered to share its file on the case. Two copies are
available, one with the Belgian Federal Prosecutor and one
with the Legal Advisor to the MFA. Legatt has agreed to look
at the dossier with the Federal Prosecutor handling the case.
Belgian authorities reiterated that they would welcome any
additional information or intelligence on GRF that can be
shared by U.S. agencies.


8. (C) Post will follow up on Belgian requests for more
detailed information on designations, licenses and
de-listing, drawing on OFAC website and other sources. For
example, the Belgians asked about criteria for designation
and under what legislative authority the U.S. designates
(International Economic Powers Act, IEPA). We will also
provide the Belgians with an FBI Field Guide on designations.

MEETING WITH EUROPEAN COMMISSION ON NON-PROFITS
-------------- --


9. (SBU) A/S O,Brien also met with Jonathan Faull, Director
General for Justice, Freedom and Security at the European
Commission to discuss cooperation in the non-profit sector.
Faull invited the U.S. to participate in a large conference
that they are planning on this issue October 9-10 in
Brussels. This conference is a follow up to the
Communication that the Commission issued in December that
makes recommendations to the member states and sets out a
code of conduct for the non-profit organizations. Faull
indicated that the conference would bring together 250 people
representing a broad range of stakeholders including
non-profit organizations, law enforcement, regulators, and
financial intelligence units


10. (C) Nicholas Kaye said that getting agreement on member
states on the best approach had been difficult, with the
Nordic countries in particular being reluctant to regulate
the sector. He noted that it had not been possible to get an
EU consensus on the Interpretative Note dealing with
non-profits among member states before the last Financial
Action Task Force meeting in South Africa. Given this
dynamic, the Commission does not intend to put the code of
conduct or recommendations to the member states to the
Council for debate for fear that the result would be to water
down what the Commission has proposed. Kaye also noted that
the Commission had initially intended to include risk
indicators as part of the communication, but given the
sensitive nature had dropped it. He said that the Commission
still feels that risk indicators are important and would
welcome US input on how those should be developed.


11. (SBU) O,Brien asked Faull whether there would be some
way to move forward with the proposal in the June 2004 summit
declaration to work jointly on analysis of frozen accounts.
Faull agreed to look into the situation.


12. (U) This cable, jointly drafted by Embassy and USEU, has
been cleared by A/S O'Brien's office.
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