TERRORIST FINANCE: SAG ON ABOUSOFIAN, YASSIN

C O N F I D E N T I A L RIYADH 007058 SIPDIS SIPDIS E.O. 12958: DECL: 09/06/2016 TAGS: EFIN KFTN PREL PTER ETTC SA ID RP SUBJECT: TERRORIST FINANCE: SAG ON ABOUSOFIAN, YASSIN AL-QADI AND IIRO INDONESIA REF: A. STATE 134981 ¶B. RIYADH 6666 ¶C. ANKARA 5001 Classified By: DCM Michael Gfoeller for reasons 1.4 (B) and (D). ¶1. (U) This contains an action request at paragraph 6. ¶2. (C) Summary: MFA's counselor for counterterrorism, Abdulrahman Al-Ahmed, told us August 29 that it will take appropriate action on the 1267 Designation of Abousofian Abdelrazik. He asked for updates on the closing of the IIRO branch in Indonesia and on our evidence of Yassin Al'Qadi's UNSC 1267 designation. He indicated that the SAG's High Commission for Charities is still "under study". End Summary. ¶3. (U) On August 29, EconOff met with the MFA's counselor for counterterrorism, Abdulrahman A. Al-Ahmed, who had recently returned from the U.S., after taking part in a training program of counterterrorism issues at the National Defense University. Approximately 15 other Gulf region country representatives attended this course. ¶4. (C) EconOff and Al-Ahmed discussed the July 31 UN 1267 Committee's designation of Abousofian Abdelrazik (reftel A). Al-Ahmed reiterated the SAG's policy that Saudi Arabia would take all actions required of it as a UN member state under the UNSC sanctions resolutions. He specifically mentioned that SAG agencies would inform financial institutions of these additions and changes. Furthermore, Al-Ahmed confirmed the IIRO's Eastern Province Branch was shut down pending a Ministry of Interior and Saudi Arabian Monetary Agency (SAMA) investigation. Al-Ahmed inquired about the status of the IIRO's Indonesia branch and why it was not shut down. He stated that the SAG heard, "The IIRO Indonesia branch was not shut down because the Chinese and Americans were negotiating a deal." ¶5. (C) EconOff and Al-Ahmed discussed Turkey's highest court's suspension on July 21 of a five-year old freeze on the assets of Saudi businessman, Yassin Al'Qadi (reftel B and C). Al-Ahmed asked for additional information from the U.S. Government on evidence linking Al'Qadi to terrorist organizations and financing of those organizations. Al-Ahmed indicated that approximately one year ago, the Embassy in Washington, D.C. requested such Saudi information from the U.S. government through diplomatic channels; however, they received inadequate information showing the linkage. Al-Ahmed specifically asked for additional information that supports Al'Qadi's 1267 designation. Additionally, Al-Ahmed stressed the importance of this information to the SAG in case it has to defend itself against a law suit by Al'Qadi. He stated that the SAG does not have evidence of its own indicating Al'Qadi is 1267 designation-worthy. Al-Ahmed did state, that regardless of the evidence on Al'Qadi, the SAG will abide by and support UNSCR 1267 and any designations under it, including that of Al'Qadi. ¶6. (C) Action Request: Please provide Post with unclassified or declassified information concerning Al'Qadi's SIPDIS activities that supported the 1267's committee's designation of Al'Qadi. End Action Request. ¶7. (C) EconOff and Al-Ahmed discussed the status of the SAG's Charity Commission regulations. Al-Ahmed stated that the high commission has not been set up and is still in review with SAG's legal advisors. Al-Ahmed referred to the difficulty in combining Shar'ia law, Zakat, and Western legal principles. The study has already taken approximately one year. ¶8. (C) Comment: The SAG has repeatedly committed to us that it will comply with UNSCR 1267 by freezing assets and banning travel, and it does so. However, the SAG is looking for our help in getting detailed information, beyond that supplied to the UN 1267 Committee. EconOff's impression is that the SAG will comply with the 1267 Designations, but they are not wholly supportive and do not believe that some of the designations are legitimate. GFOELLER