TERRORIST FINANCE: THE GOI AND 1267 DESIGNATIONS

S E C R E T JAKARTA 007501

SIPDIS

SIPDIS

DEPT FOR EAP/MTS, EAP/RSP, S/CT,
TREASURY FOR OFAC JPHILIPP
NSC FOR THINNEN

E.O. 12958: DECL: 06/14/2016
TAGS: EFIN ETTC PGOV PREL PTER ID
SUBJECT: TERRORIST FINANCE: THE GOI AND 1267 DESIGNATIONS

REF: A. STATE 83455


B. JAKARTA 2527

C. STATE 22847

Classified By: Economic Officer Tobias Glucksman for reasons 1.4 (b) an
d (d).


1. (S) Summary: This cable provides post,s responses and
comments to questions and issues raised in ref a. Embassy
Jakarta supports the creation of a bilateral group to discuss
counter terrorism finance (CTF) issues and sees a proposed
U.S.-Indonesia Justice Sector Joint Working Group (JSJWG)
Counter Terrorism (CT) Subcommittee as the most practical and
effective vehicle. We owe an answer to the GOI on how we
envision structuring the JSJWG. Indonesia,s Financial
Intelligence Unit (PPATK) has a link to the UNSCR 1267 list
on its website, but the organization lacks statutory
authority to order financial institutions to look for and
report matching accounts. Working closely with the PPATK and
other agencies we want to help the GOI incorporate such
authorities in draft amendments to Indonesia,s Anti-Money
Laundering (AML) law. A proposed UNSCR 1267 Monitoring Team
visit to Jakarta could prove helpful in prompting more
effective GOI action. The Indonesian National Police,s
chief CTF investigator has promised to provide us a report on
ref c specific asset leads in the coming days. End Summary



2. (S) Embassy Jakarta supports the creation of a bilateral
working group that could hold more structured and
constructive discussions on counter terrorism finance (CTF)
issues. We see this best accomplished through the
counter-terrorism working group envisioned under a proposed
U.S.-Indonesia Justice Sector Joint Working Group (JSJWG).
The JSJWG would meet once or twice yearly and through working
level subcommittees address a broad range of justice sector
issues, including counter-terrorism (CT),corruption, law
enforcement cooperation, judicial capacity building, and
criminal conspiracies, financial crime and money laundering.
Addressing CTF issues within the broader context of our
overall bilateral CT dialogue provides the best way to
highlight CTF issues with key Government of Indonesia
decision makers. Presidents Bush and Yuhoyono endorsed the
establishment of the JSJWG when they met in Washington in May
2005, and most recently Indonesia Attorney General Abdul
Rahman Saleh discussed the JSJWG during his February 2006
meeting with Attorney General Gonzales in Washington. We owe
an answer to the GOI as to what level should lead the JSJWG
and how we would prefer to structure possible sub-committees.


3. (S) Indonesia,s Financial Intelligence Unit (PPATK) has
a link on its official website that directs users to the
UNSCR 1267 list. The PPATK, however, does not have the
authority to order banks and other financial institutions to
check their records and accounts against new UNSCR 1267
listings and report back any suspicious findings. Proposed
amendments to Indonesia,s anti-money laundering (AML) law
could provide the PPATK with such authorities, as well as the
authority to temporarily freeze accounts. We continue
monitor the AML law amendment process closely and to
encourage the PPATK and other agencies to consider measures
that would improve the GOI,s implementation of UNSCR 1267.


4. (S) We support a visit by a UNSCR 1267 Committee
Monitoring Team. The visit would help raise awareness about
deficiencies in GOI UNSCR 1267 implementation and perhaps
generate broader GOI support for expanded PPATK authorities
and other efforts to improve its UNSCR 1267 implementation.


5. (S) The Indonesia National Police,s chief CTF
investigator told us he soon will provide us a report of his
unit,s investigation into ref c specific assets leads
provided the GOI in February.
AMSELEM