Identifier
Created
Classification
Origin
06RIYADH8406
2006-10-22 11:32:00
CONFIDENTIAL
Embassy Riyadh
Cable title:
THE SAUDI FINANCIAL INTELLIGENCE UNIT III:
VZCZCXRO6628 OO RUEHDE RUEHDIR DE RUEHRH #8406/01 2951132 ZNY CCCCC ZZH O 221132Z OCT 06 FM AMEMBASSY RIYADH TO RUEATRS/DEPT OF TREASURY WASHDC IMMEDIATE RUEHC/SECSTATE WASHDC IMMEDIATE 2827 INFO RHEHNSC/NSC WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHMCSUU/FBI WASHINGTON DC PRIORITY RUEAWJA/DEPT OF JUSTICE WASHDC PRIORITY RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE RUEHJI/AMCONSUL JEDDAH 7854
C O N F I D E N T I A L SECTION 01 OF 03 RIYADH 008406
SIPDIS
SIPDIS
TREASURY PLEASE PASS TO FINCEN
E.O. 12958: DECL: 10/22/2016
TAGS: EFIN PTER KTFN ETTC SA
SUBJECT: THE SAUDI FINANCIAL INTELLIGENCE UNIT III:
RELATIONSHIP WITH MOI AGENCIES AND CUSTOMS
REF: A. RIYADH 9221
B. RIYADH 8401
C. RIYADH 8404
Classified By: Acting Deputy Chief of Mission Robert Silverman for reas
ons 1.4 (b),(d) and (g).
C O N F I D E N T I A L SECTION 01 OF 03 RIYADH 008406
SIPDIS
SIPDIS
TREASURY PLEASE PASS TO FINCEN
E.O. 12958: DECL: 10/22/2016
TAGS: EFIN PTER KTFN ETTC SA
SUBJECT: THE SAUDI FINANCIAL INTELLIGENCE UNIT III:
RELATIONSHIP WITH MOI AGENCIES AND CUSTOMS
REF: A. RIYADH 9221
B. RIYADH 8401
C. RIYADH 8404
Classified By: Acting Deputy Chief of Mission Robert Silverman for reas
ons 1.4 (b),(d) and (g).
1. (U) Summary: From September 16-19, Ahmed Elbashari,
representative of the U.S. Department of the Treasury's
Financial Crimes Enforcement Network (FinCEN),and EconOff,
met with senior management of the Saudi Arabia Financial
Investigation Unit (SA FIU) to assess the SA FIU for
membership in the Egmont financial intelligence units. This
cable is one of four reviewing the FINCEN visit, and focuses
on the SA FIU's relationship with the Public Security Agency
(PSA),Mabahith, and Customs Authority. In essence, the SA
FIU collects the information, however the real investigation
and analysis comes from the PSA and Mahabith. End Summary.
2. (U) Senior representatives of the Saudi Arabian
Government (SAG) interlocutors on the law enforcement part of
the assessment included:
--Dr. Saud Al-Murieshd, Director of the SA FIU;
--Khalid Al-Luhaidan, Deputy Director of the SA FIU;
--Naser Al-Omair, Head of the Department of Information
Exchange and Follow up;
--Musfer Kahtani, Deputy head of the Department of
Information Exchange and Follow up;
--Colonel Khedher Bin Al-Zahrani, Administration Director of
Criminal Research in Public Security of the PSA;
--Captain Ahmed Al-Luhaidan, Head of the anti-money
laundering unit in the drug enforcement branch of the PSA;
--Colonel Abdul-Kareem Al-Sbait, Head of the Interrogation
Department of the Mabahith;
--Colonel FNU LNU, Head of the Investigation Department; and
--Colonel Fahad Abdulaziz Al-Maghlooth, General Supervisor of
the SA FIU and Chief of the Permanent Committee on
Counterterrorism at the MOI.
3. (C) The SA FIU's Deputy Director, Al-Luhaidan was absent
for meetings at the SA FIU, but was present at the Mabahith
meeting. Al-Luhaidan is assisting to set up the Mabahith's
newly created Investigation Department. End comment.
-------------- --------------
THE SA FIU'S PARTNERSHIP WITH THE PUBLIC SECURITY AGENCY
-------------- --------------
4. (U) The PSA has approximately thirteen field offices
throughout the Kingdom of Saudi Arabia (KSA). The field
offices have two branches, Criminal Investigations and Drug
Enforcement. Both branches have specialized departments that
investigate money laundering. The PSA handles only money
laundering crimes; terrorist financing crimes are handled by
the Mabahith. There are PSA personnel detailed to the SA
FIU, working primarily in the Information Gathering and
Analysis Section. The PSA and SA FIU have coordination and
information sharing meetings approximately every ten days.
5. (C) The PSA and SA FIU utilize the National Information
Center (NIC),a database in which all law enforcement
agencies populate and search. The PSA also utilizes a
secondary database restricted to PSA employees that contains
sensitive law enforcement information. In the future, the
secondary database will also be available to the SA FIU.
--------------
THE PSA'S INVESTIGATION STEPS
--------------
6. (U) The PSA receives Suspicious Transaction Reports
(STRs) from the SA FIU, which are routed to the criminal
investigative branch or the drug enforcement branch.
7. (C) The branch investigates and gathers information
using various law enforcement techniques such as: database
checks, analysis, source interviews, undercover operations
and other sensitive methods. For undercover operations, the
PSA has a specialized department with personnel that mimic
different nationalities, accents, professions etc. The
undercover employees are officers, soldiers, and staff
employees. If the target is Westerner, the PSA utilizes
RIYADH 00008406 002 OF 003
maids, drivers, friends to infiltrate the circle, and collect
information. The PSA provides collected information to the
SA FIU for analysis. The preliminary stages of an
investigation generally take one week.
8. (U) In Sharia law there are only two ways to obtain a
conviction: 1) a confession or 2) a witness. When asked
about DNA evidence, the PSA stated that judges are coming
around to scientific evidence, but it must be 100% accurate.
The PSA stated that DNA tests are not 100% accurate so three
separate showings of guilt must be presented along with the
DNA.
9. (C) Comment: The Saudi justice system does not believe
in the accuracy of DNA evidence, rather, it relies on
confessions or witnesses, which are not proven to be wholly
reliable.
--------------
PSA'S TECHNOLOGY & SECURITY
--------------
10. (SBU) The Riyadh office has approximately one hundred
officers. Resources and staffing are allocated based on the
size of the area, frequency of the offenses in an area, and
how its remoteness is.
11. (C) The district offices use a encrypted phone and fax
machine to communicate. The PSA utilizes dogs to detect
drugs, but not to detect money. (Comment: One of the PSA
officers was surprised when told dogs can be trained to
detect large bundles of cash. End comment). The Customs
Authority utilizes an x-ray machine that detects gold jewelry
and bundles of paper.
--------------
PSA'S QUALIFICATIONS & TRAINING
--------------
12. (U) The money laundering units recruit people trained
in accounting, economics, law, business administration and
criminal justice. The qualifications for non-commissioned
officers are a highschool degree from a vocational school,
technical background or a background in financial issues.
The money laundering units provide training courses through
the Saudi Arabian Monetary Agency's (SAMA) banking institute,
anti-money laundering courses at Prince Naif University, and
King Fahad University's High Institute for Security Studies.
There are also training institutes in Medina, as well as
training workshops in district offices. In the future for
those that speak foreign languages, courses will be offered
in the U.S. & Europe.
--------------
THE SA FIU'S PARTNERSHIP WITH THE MABAHITH
--------------
13. (U) The Mabahith's specialized Division on Terrorism
and Terrorism Finance are broken into two units,
Investigation and Interrogation. The Investigation Unit
handles terrorism finance and public and private corruption.
The Investigation Unit detains suspects and interviews them
for additional lead information.
14. (SBU) The SA FIU passes the STR and analysis to the
Investigation unit, who in turn conducts investigations
similar to the PSA, and when necessary obtains financial
records from SAMA. After the Investigation Unit has
collected its evidence, primarily surveillance and security
information, the information is sent back to the SA FIU for
further analysis: this entire process could take four to six
months. After sufficient evidence is obtained, the suspect
is arrested and the case is passed to the Interrogation Unit.
At this point the Interrogation Unit works directly with the
Bureau of Investigation and Prosecution (BIP).
15. (SBU) The SA FIU has passed the Mabahith four terrorist
finance cases, but none have gone to prosecution. The
Mabahith is part of the FBI's Joint Terrorism Finance Task
Force, which shares information and provide technical
assistance. The SA FIU can freely share Mabahith information
with other FIUs as long as the appropriate safeguards and
caveats are utilized. Like the PSA, the Mabahith, look for
RIYADH 00008406 003 OF 003
similar requirements in recruiting new employees and utilize
the same training programs and universities.
16. (C) Colonel Kareem, Head of the Interrogation Unit,
stated that SAMA was not cooperating in providing financial
information. He stated that the Mabahith have a large number
of detainees, and need personal and financial account
information to adequately interrogate suspects. He charged
SAMA in not releasing the information in a timely manner
therefore impeding investigations.
--------------
SA FIU'S RELATIONSHIP WITH CUSTOMS
--------------
17. (U) The Customs Authority is in the process of
preparing cash declaration forms, after which the 2005 Cash
Courier Regulations will be enforced. Once the forms are
issued, the SA FIU will receive a copy of the declaration
form for recording-keeping. The Customs Authority will send
the SA FIU those forms with cash declarations exceeding the
legal threshold (SAR 60,000 or USD 16,000). Customs, along
with the BIP will work together on the investigation.
18. (C) Comment. The SA FIU plays a nominal role in the
financial investigations stemming from the Cash Courier
Regulations. The SA FIU acts as a reference point for
Customs, but has no real role investigatory power in these
cases. End comment.
OBERWETTER
SIPDIS
SIPDIS
TREASURY PLEASE PASS TO FINCEN
E.O. 12958: DECL: 10/22/2016
TAGS: EFIN PTER KTFN ETTC SA
SUBJECT: THE SAUDI FINANCIAL INTELLIGENCE UNIT III:
RELATIONSHIP WITH MOI AGENCIES AND CUSTOMS
REF: A. RIYADH 9221
B. RIYADH 8401
C. RIYADH 8404
Classified By: Acting Deputy Chief of Mission Robert Silverman for reas
ons 1.4 (b),(d) and (g).
1. (U) Summary: From September 16-19, Ahmed Elbashari,
representative of the U.S. Department of the Treasury's
Financial Crimes Enforcement Network (FinCEN),and EconOff,
met with senior management of the Saudi Arabia Financial
Investigation Unit (SA FIU) to assess the SA FIU for
membership in the Egmont financial intelligence units. This
cable is one of four reviewing the FINCEN visit, and focuses
on the SA FIU's relationship with the Public Security Agency
(PSA),Mabahith, and Customs Authority. In essence, the SA
FIU collects the information, however the real investigation
and analysis comes from the PSA and Mahabith. End Summary.
2. (U) Senior representatives of the Saudi Arabian
Government (SAG) interlocutors on the law enforcement part of
the assessment included:
--Dr. Saud Al-Murieshd, Director of the SA FIU;
--Khalid Al-Luhaidan, Deputy Director of the SA FIU;
--Naser Al-Omair, Head of the Department of Information
Exchange and Follow up;
--Musfer Kahtani, Deputy head of the Department of
Information Exchange and Follow up;
--Colonel Khedher Bin Al-Zahrani, Administration Director of
Criminal Research in Public Security of the PSA;
--Captain Ahmed Al-Luhaidan, Head of the anti-money
laundering unit in the drug enforcement branch of the PSA;
--Colonel Abdul-Kareem Al-Sbait, Head of the Interrogation
Department of the Mabahith;
--Colonel FNU LNU, Head of the Investigation Department; and
--Colonel Fahad Abdulaziz Al-Maghlooth, General Supervisor of
the SA FIU and Chief of the Permanent Committee on
Counterterrorism at the MOI.
3. (C) The SA FIU's Deputy Director, Al-Luhaidan was absent
for meetings at the SA FIU, but was present at the Mabahith
meeting. Al-Luhaidan is assisting to set up the Mabahith's
newly created Investigation Department. End comment.
-------------- --------------
THE SA FIU'S PARTNERSHIP WITH THE PUBLIC SECURITY AGENCY
-------------- --------------
4. (U) The PSA has approximately thirteen field offices
throughout the Kingdom of Saudi Arabia (KSA). The field
offices have two branches, Criminal Investigations and Drug
Enforcement. Both branches have specialized departments that
investigate money laundering. The PSA handles only money
laundering crimes; terrorist financing crimes are handled by
the Mabahith. There are PSA personnel detailed to the SA
FIU, working primarily in the Information Gathering and
Analysis Section. The PSA and SA FIU have coordination and
information sharing meetings approximately every ten days.
5. (C) The PSA and SA FIU utilize the National Information
Center (NIC),a database in which all law enforcement
agencies populate and search. The PSA also utilizes a
secondary database restricted to PSA employees that contains
sensitive law enforcement information. In the future, the
secondary database will also be available to the SA FIU.
--------------
THE PSA'S INVESTIGATION STEPS
--------------
6. (U) The PSA receives Suspicious Transaction Reports
(STRs) from the SA FIU, which are routed to the criminal
investigative branch or the drug enforcement branch.
7. (C) The branch investigates and gathers information
using various law enforcement techniques such as: database
checks, analysis, source interviews, undercover operations
and other sensitive methods. For undercover operations, the
PSA has a specialized department with personnel that mimic
different nationalities, accents, professions etc. The
undercover employees are officers, soldiers, and staff
employees. If the target is Westerner, the PSA utilizes
RIYADH 00008406 002 OF 003
maids, drivers, friends to infiltrate the circle, and collect
information. The PSA provides collected information to the
SA FIU for analysis. The preliminary stages of an
investigation generally take one week.
8. (U) In Sharia law there are only two ways to obtain a
conviction: 1) a confession or 2) a witness. When asked
about DNA evidence, the PSA stated that judges are coming
around to scientific evidence, but it must be 100% accurate.
The PSA stated that DNA tests are not 100% accurate so three
separate showings of guilt must be presented along with the
DNA.
9. (C) Comment: The Saudi justice system does not believe
in the accuracy of DNA evidence, rather, it relies on
confessions or witnesses, which are not proven to be wholly
reliable.
--------------
PSA'S TECHNOLOGY & SECURITY
--------------
10. (SBU) The Riyadh office has approximately one hundred
officers. Resources and staffing are allocated based on the
size of the area, frequency of the offenses in an area, and
how its remoteness is.
11. (C) The district offices use a encrypted phone and fax
machine to communicate. The PSA utilizes dogs to detect
drugs, but not to detect money. (Comment: One of the PSA
officers was surprised when told dogs can be trained to
detect large bundles of cash. End comment). The Customs
Authority utilizes an x-ray machine that detects gold jewelry
and bundles of paper.
--------------
PSA'S QUALIFICATIONS & TRAINING
--------------
12. (U) The money laundering units recruit people trained
in accounting, economics, law, business administration and
criminal justice. The qualifications for non-commissioned
officers are a highschool degree from a vocational school,
technical background or a background in financial issues.
The money laundering units provide training courses through
the Saudi Arabian Monetary Agency's (SAMA) banking institute,
anti-money laundering courses at Prince Naif University, and
King Fahad University's High Institute for Security Studies.
There are also training institutes in Medina, as well as
training workshops in district offices. In the future for
those that speak foreign languages, courses will be offered
in the U.S. & Europe.
--------------
THE SA FIU'S PARTNERSHIP WITH THE MABAHITH
--------------
13. (U) The Mabahith's specialized Division on Terrorism
and Terrorism Finance are broken into two units,
Investigation and Interrogation. The Investigation Unit
handles terrorism finance and public and private corruption.
The Investigation Unit detains suspects and interviews them
for additional lead information.
14. (SBU) The SA FIU passes the STR and analysis to the
Investigation unit, who in turn conducts investigations
similar to the PSA, and when necessary obtains financial
records from SAMA. After the Investigation Unit has
collected its evidence, primarily surveillance and security
information, the information is sent back to the SA FIU for
further analysis: this entire process could take four to six
months. After sufficient evidence is obtained, the suspect
is arrested and the case is passed to the Interrogation Unit.
At this point the Interrogation Unit works directly with the
Bureau of Investigation and Prosecution (BIP).
15. (SBU) The SA FIU has passed the Mabahith four terrorist
finance cases, but none have gone to prosecution. The
Mabahith is part of the FBI's Joint Terrorism Finance Task
Force, which shares information and provide technical
assistance. The SA FIU can freely share Mabahith information
with other FIUs as long as the appropriate safeguards and
caveats are utilized. Like the PSA, the Mabahith, look for
RIYADH 00008406 003 OF 003
similar requirements in recruiting new employees and utilize
the same training programs and universities.
16. (C) Colonel Kareem, Head of the Interrogation Unit,
stated that SAMA was not cooperating in providing financial
information. He stated that the Mabahith have a large number
of detainees, and need personal and financial account
information to adequately interrogate suspects. He charged
SAMA in not releasing the information in a timely manner
therefore impeding investigations.
--------------
SA FIU'S RELATIONSHIP WITH CUSTOMS
--------------
17. (U) The Customs Authority is in the process of
preparing cash declaration forms, after which the 2005 Cash
Courier Regulations will be enforced. Once the forms are
issued, the SA FIU will receive a copy of the declaration
form for recording-keeping. The Customs Authority will send
the SA FIU those forms with cash declarations exceeding the
legal threshold (SAR 60,000 or USD 16,000). Customs, along
with the BIP will work together on the investigation.
18. (C) Comment. The SA FIU plays a nominal role in the
financial investigations stemming from the Cash Courier
Regulations. The SA FIU acts as a reference point for
Customs, but has no real role investigatory power in these
cases. End comment.
OBERWETTER