Identifier
Created
Classification
Origin
06LONDON7400
2006-10-17 16:09:00
CONFIDENTIAL//NOFORN
Embassy London
Cable title:  

(C) TERRORISM FINANCE: UK TO BEGIN USING

Tags:  ETTC KTFN PREL PTER CO UK 
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VZCZCXYZ0000
RR RUEHWEB

DE RUEHLO #7400 2901609
ZNY CCCCC ZZH
R 171609Z OCT 06
FM AMEMBASSY LONDON
TO RUEHC/SECSTATE WASHDC 9815
INFO RUEATRS/DEPT OF TREASURY WASHDC
RHMCSUU/FBI WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHEHNSC/NSC WASHDC
C O N F I D E N T I A L LONDON 007400 

SIPDIS

NOFORN
SIPDIS

STATE FOR EB/ESC/TFS, S/CT, EUR/ERA, EUR/PGI, AND EUR/UBI

E.O. 12958: DECL: 10/15/2016
TAGS: ETTC KTFN PREL PTER CO UK
SUBJECT: (C) TERRORISM FINANCE: UK TO BEGIN USING
CLASSIFIED INFORMATION FOR DESIGNATIONS


Classified By: Economic Minister Counselor Mark Tokola for reasons 1.4(
b) and (d)

C O N F I D E N T I A L LONDON 007400

SIPDIS

NOFORN
SIPDIS

STATE FOR EB/ESC/TFS, S/CT, EUR/ERA, EUR/PGI, AND EUR/UBI

E.O. 12958: DECL: 10/15/2016
TAGS: ETTC KTFN PREL PTER CO UK
SUBJECT: (C) TERRORISM FINANCE: UK TO BEGIN USING
CLASSIFIED INFORMATION FOR DESIGNATIONS


Classified By: Economic Minister Counselor Mark Tokola for reasons 1.4(
b) and (d)


1. (U) Chancellor Gordon Brown announced October 10 that Her
Majesty's Treasury -- on the advice of law enforcement
agencies -- had agreed to use "closed source evidence" (i.e.
classified materials) in asset freezing cases where there are
strong operational reasons to impose a freeze, but
insufficient unclassified information available. He also
announced that HMG would seek to amend its existing domestic
legislation to give "the Treasury the power to stop funds
reaching anyone in the UK suspected of planning terror or
engagement with terror."


2. (C) According to the Head of HMT's Asset Freezing Group
Patrick Guthrie, HMT is currently developing procedures on
how to protect classified materials from release in the case
of court challenge. But he added that HMT will not wait
until these procedures are in place to begin using the new
powers. In fact, he said that the asset freezes for some of
those involved in the foiled August airplane plot were based
on classified materials. Guthrie said that HMT was working
with law enforcement and security service officials to
develop additional cases for designation using these new
powers.


3. (C) Guthrie said that HMT is seeking changes to the
Terrorism (United Nations Measures) Order, the legislation
which provides the legal framework for domestic asset
freezes. According to Guthrie, the existing legislation has
an unacceptable loophole. When a domestic designation takes
place, there is an immediate asset freeze. But the law does
not currently make it an offense to make funds available to
people who have been designated unless they have also been
convicted of a terrorism-related crime. The new law will
make it a crime to make funds available to anyone who has
been designated.


4. (C/NF) Comment: The decision to allow the use of
classified information in making domestic designations is a
very positive development. HMT's inability to use classified
materials in support of domestic designations has made it
nearly impossible for it to freeze assets without UN cover.
We will encourage HMG to use this new tool aggressively. End
comment.

Visit London's Classified Website:
http://www.state.sgov.gov/p/eur/london/index. cfm
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