TREASURY A/S O'BRIEN MEETS CTC CHAIRMAN LOJ

C O N F I D E N T I A L USUN NEW YORK 000732

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E.O. 12958: DECL: 04/05/2011
TAGS: UNSC ETTC PREL PGOV
SUBJECT: TREASURY A/S O'BRIEN MEETS CTC CHAIRMAN LOJ

Classified By: Deputy Political Counselor Molly Phee,
for Reasons 1.4 (B and D)


1. (C) SUMMARY: The UN Counter-Terrorism Committee's (CTC)
primary responsibility was to build a truly international
coalition in the fight against terrorism by ensuring that
less developed States were not "left behind," explained CTC
Chairman Loj during her meeting with Treasury Assistant
Secretary O'Brien. In addition, Chairman Loj asked for U.S.

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assistance in convincing China to allow the CTC to endorse
FATF recommendations as a best practice. A/S O'Brien
underlined the importance of the FATF recommendations and
assured Loj that the U.S. would continue to press China to
support FATF in all international fora, including at the UN.
A/S O'Brien highlighted FATF's special recommendation three
(of nine special recommendations on terrorist financing) to
construct national asset freezing mechanisms, and he urged
the CTC to focus more energy toward this aim. Loj accepted
A/S O'Brien's offer to send a Treasury team to New York to
follow up with CTC and its expert group, the
Counter-Terrorism Executive Directorate (CTED). END SUMMARY.


2. (C) Treasury Assistant Secretary for Terrorist Financing
Pat O'Brien visited New York on March 29 and met with the UN
Counter-Terrorism Committee (CTC) Chairman, Danish Permanent
Representative, Ellen Margerethe Loj. Chairman Loj began the
discussion by explaining her vision of the CTC's primary
mandate. She explained that immediately after the September
11 attacks, the West moved extremely quickly to fight
terrorism. Less developed States had a difficult time
"keeping up" with the global war on terror, often because of
lack of resources.


3. (C) Loj believed the CTC's main goal was to help make the
war on terror a truly global endeavor by facilitating efforts
to provide technical assistance to those countries in need,
especially in Asia, Africa, and South America. A/S O'Brien
agreed that facilitating technical assistance was vital and
also noted the recent MENA-FATF conference in Cairo, where
there was a private sector exchange between U.S. and Arab
bankers.


4. (C) With regard to the issue of non-compliance, Loj stated
the CTC was focused on "monitoring" implementation of
resolution 1373, not on "jumping to judgments" about States'
compliance. She argued that if the CTC were meant to report
on non-compliance, then resolution 1373 would have been
drafted differently.


5. (C) Chairman Loj made reference to the revised Preliminary
Implementation Assessment (PIA) - now in matrix form to help
standardize information gathered by CTED - which would likely
initiate a serious discussion on who is and who is not
fulfilling the "freeze without delay" component of resolution

1373. The new PIA would also likely serve as a useful guide
in determining who requires technical assistance to bring
them into compliance with resolution 1373.

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FATF BEST PRACTICES AND CHINA
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6. (C) Chairman Loj explained the CTC was currently engaged
in an important discussion on best practices and she lamented
China's hard-line opposition to the endorsement of the FATF
recommendations. Chairman Loj stated that China's position
regarding FATF was slowing the CTC's general discussion on
best practices and threatened to foil any agreement. A/S
O'Brien agreed to explore ways to press China to change its
position. He highlighted the importance of FATF
recommendation three to construct national asset freezing
mechanisms and urged the CTC to focus more energy on
resolution 1373's call on States to "freeze without delay"
terrorist assets.


7. (C) A/S O'Brien offered to send a team to New York to
follow up on Treasury's January meetings with CTED and the
CTC. The goal of the proposed visit would be to discuss
further resolution 1373's "freeze without delay" provisions.
Chairman Loj emphasized that follow-up was always positive
and accepted A/S O'Brien's offer.


8. (U) This cable has been cleared by Treasury A/S O'Brien.
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