Identifier
Created
Classification
Origin
06NICOSIA1917
2006-11-09 13:58:00
CONFIDENTIAL
Embassy Nicosia
Cable title:
TERRORISM FINANCE COORDINATION OFFICER: CYPRUS
how-toVZCZCXYZ0001 PP RUEHWEB DE RUEHNC #1917/01 3131358 ZNY CCCCC ZZH P 091358Z NOV 06 FM AMEMBASSY NICOSIA TO RUEHC/SECSTATE WASHDC PRIORITY 7204 INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 4799 RUEHTH/AMEMBASSY ATHENS PRIORITY 3727 RUEHHE/AMEMBASSY HELSINKI PRIORITY 0387 RUEHLO/AMEMBASSY LONDON PRIORITY 1251 RUEHBS/USEU BRUSSELS PRIORITY
C O N F I D E N T I A L NICOSIA 001917
SIPDIS
SIPDIS
DEPT FOR EB/ESC/TFS: SHINDS, S/CT: PHILL, INL/C/CP:
SPETERSON, AND IO/PSC: JSANDAGE
E.O. 12958: DECL: 11/07/2016
TAGS: KTFN EFIN ETTC KVPR PREL PTER CY
SUBJECT: TERRORISM FINANCE COORDINATION OFFICER: CYPRUS
REF: A) SECSTATE 181096 B) NICOSIA 1889
Classified By: A/DCM Tom Miller; Reasons 1.4 b and d.
C O N F I D E N T I A L NICOSIA 001917
SIPDIS
SIPDIS
DEPT FOR EB/ESC/TFS: SHINDS, S/CT: PHILL, INL/C/CP:
SPETERSON, AND IO/PSC: JSANDAGE
E.O. 12958: DECL: 11/07/2016
TAGS: KTFN EFIN ETTC KVPR PREL PTER CY
SUBJECT: TERRORISM FINANCE COORDINATION OFFICER: CYPRUS
REF: A) SECSTATE 181096 B) NICOSIA 1889
Classified By: A/DCM Tom Miller; Reasons 1.4 b and d.
1. (C) All responses are keyed to the questions in paragraph
9 of ref A.
a) TFCO: Jane Zimmerman
Deputy Chief of Mission
tel: 357 22 39 3595
Embassy after hours switchboard: 357 22 39 3300
ZimmermanJB@State.gov
b) Deputy TFCO: Michael S. Dixon
Economic and Commercial Officer
tel: 357 22 39 3359
Embassy after hours switchboard: 357 22 39 3399
DixonMS@State.gov
c) Post found the June 2, 2006 regional meeting on Terrorism
Finance at USEU Brussels informative and valuable and would
encourage making this an annual event. Visits from Treasury
officials have also proven helpful in pushing our money
laundering/terrorist finance agenda forward. Post would
welcome more visits and more targeted regional generic op-eds
for placement in local press, especially if they include
examples of where terrorist finance efforts led to tangible
results in other similar jurisdictions. Post would also
welcome USG-financed terrorism finance workshops for GoC
officials, either in Cyprus or abroad. While Cypriot
cooperation has been strong, we occasionally find ourselves
up against the attitude that terrorist financing is unlikely
to occur here and all the work that is required generates
little bang for the buck.
d) Government-controlled area: The GoC claims that its
anti-money laundering law and its ratification of the 1999
Convention on the Suppression of the Financing of Terrorism
give it the authority it needs to confiscate terrorist funds,
although this has yet to be tested in practice. The recent
Moneyval evaluators, however, were not convinced that this
was an adequate mechanism. The evaluators found that "Cyprus
has an administrative procedure for freezing (terrorism
funds) under the UN resolutions and regulations of the EU."
However, a "comprehensive and effective system for freezing
without delay by all financial institutions of assets of
designated persons, including publicly known procedures for
de-listing, is not yet fully in place." (Note: Cyprus has
also yet to criminalize the collection of funds for terrorist
groups or individuals as required under FATF SR 2.)
The GoC has signed and ratified the UN Convention on
Terrorism Financing and has implemented UNSCRs 1267, 1373,
1390, and 1455. The GoC has adopted money laundering
legislation and established an FIU. Cyprus is also a member
of Egmont and a FATF style regional body (Moneyval). Cyprus
has not issued any freeze orders on terrorist-linked assets
(it reports that is has yet to find any). The GoC regularly
shares terrorism finance information with the USG in a timely
manner, and its FIU enjoys excellent cooperation with FinCEN,
the FBI, DEA, and the Embassy.
The area administered by Turkish Cypriots: The area
administered by Turkish Cypriots (the self-proclaimed
"Turkish Republic of Northern Cyprus" or "TRNC"),which
controls the northern third of Cyprus, is not recognized by
the U.S. or any other country except Turkey, and is outside
the control of the GoC. This area does not have a clear
legislative authority to freeze terrorist funds. It is not a
UN member, so it has not signed or ratified the UN Convention
on Terrorism Financing. It has also not fully implemented
the relevant UNSCRs. While it has a relatively weak
anti-money laundering law, it has not established an FIU. It
is also not a member of Egmont or any FATF-style regional
body, nor has it issued a freeze order on terrorist funds.
The Turkish Cypriot "Central Bank" does ask the 24 Turkish
Cypriot domestic and 16 off-shore banks to search for assets
linked to designated terrorists (when we ask),but the
penalties for non-compliance are minor, and no bank has
reported any positive findings. The Turkish Cypriots would
welcome greater cooperation with U.S. intelligence and law
enforcement, which is constrained due to non-recognition
issues. (Note: Since the U.S. only recognizes the Government
of Cyprus as the sole government on the island, the area of
Cyprus administered by Turkish Cypriots should not be listed
as an entity separate from Cyprus on any charts, especially
if the chart is likely to be made public. End note.)
SCHLICHER
SIPDIS
SIPDIS
DEPT FOR EB/ESC/TFS: SHINDS, S/CT: PHILL, INL/C/CP:
SPETERSON, AND IO/PSC: JSANDAGE
E.O. 12958: DECL: 11/07/2016
TAGS: KTFN EFIN ETTC KVPR PREL PTER CY
SUBJECT: TERRORISM FINANCE COORDINATION OFFICER: CYPRUS
REF: A) SECSTATE 181096 B) NICOSIA 1889
Classified By: A/DCM Tom Miller; Reasons 1.4 b and d.
1. (C) All responses are keyed to the questions in paragraph
9 of ref A.
a) TFCO: Jane Zimmerman
Deputy Chief of Mission
tel: 357 22 39 3595
Embassy after hours switchboard: 357 22 39 3300
ZimmermanJB@State.gov
b) Deputy TFCO: Michael S. Dixon
Economic and Commercial Officer
tel: 357 22 39 3359
Embassy after hours switchboard: 357 22 39 3399
DixonMS@State.gov
c) Post found the June 2, 2006 regional meeting on Terrorism
Finance at USEU Brussels informative and valuable and would
encourage making this an annual event. Visits from Treasury
officials have also proven helpful in pushing our money
laundering/terrorist finance agenda forward. Post would
welcome more visits and more targeted regional generic op-eds
for placement in local press, especially if they include
examples of where terrorist finance efforts led to tangible
results in other similar jurisdictions. Post would also
welcome USG-financed terrorism finance workshops for GoC
officials, either in Cyprus or abroad. While Cypriot
cooperation has been strong, we occasionally find ourselves
up against the attitude that terrorist financing is unlikely
to occur here and all the work that is required generates
little bang for the buck.
d) Government-controlled area: The GoC claims that its
anti-money laundering law and its ratification of the 1999
Convention on the Suppression of the Financing of Terrorism
give it the authority it needs to confiscate terrorist funds,
although this has yet to be tested in practice. The recent
Moneyval evaluators, however, were not convinced that this
was an adequate mechanism. The evaluators found that "Cyprus
has an administrative procedure for freezing (terrorism
funds) under the UN resolutions and regulations of the EU."
However, a "comprehensive and effective system for freezing
without delay by all financial institutions of assets of
designated persons, including publicly known procedures for
de-listing, is not yet fully in place." (Note: Cyprus has
also yet to criminalize the collection of funds for terrorist
groups or individuals as required under FATF SR 2.)
The GoC has signed and ratified the UN Convention on
Terrorism Financing and has implemented UNSCRs 1267, 1373,
1390, and 1455. The GoC has adopted money laundering
legislation and established an FIU. Cyprus is also a member
of Egmont and a FATF style regional body (Moneyval). Cyprus
has not issued any freeze orders on terrorist-linked assets
(it reports that is has yet to find any). The GoC regularly
shares terrorism finance information with the USG in a timely
manner, and its FIU enjoys excellent cooperation with FinCEN,
the FBI, DEA, and the Embassy.
The area administered by Turkish Cypriots: The area
administered by Turkish Cypriots (the self-proclaimed
"Turkish Republic of Northern Cyprus" or "TRNC"),which
controls the northern third of Cyprus, is not recognized by
the U.S. or any other country except Turkey, and is outside
the control of the GoC. This area does not have a clear
legislative authority to freeze terrorist funds. It is not a
UN member, so it has not signed or ratified the UN Convention
on Terrorism Financing. It has also not fully implemented
the relevant UNSCRs. While it has a relatively weak
anti-money laundering law, it has not established an FIU. It
is also not a member of Egmont or any FATF-style regional
body, nor has it issued a freeze order on terrorist funds.
The Turkish Cypriot "Central Bank" does ask the 24 Turkish
Cypriot domestic and 16 off-shore banks to search for assets
linked to designated terrorists (when we ask),but the
penalties for non-compliance are minor, and no bank has
reported any positive findings. The Turkish Cypriots would
welcome greater cooperation with U.S. intelligence and law
enforcement, which is constrained due to non-recognition
issues. (Note: Since the U.S. only recognizes the Government
of Cyprus as the sole government on the island, the area of
Cyprus administered by Turkish Cypriots should not be listed
as an entity separate from Cyprus on any charts, especially
if the chart is likely to be made public. End note.)
SCHLICHER