TERRORISM FINANCE: PHILIPPINE GOVERNMENT READY TO

S E C R E T SECTION 01 OF 02 MANILA 000781 SIPDIS SIPDIS STATE FOR EAP, PM, S/CT, EB/ESC/ESP, AND EAP/MTS TREASURY/OIA/CTI FOR POLITZER USPACOM ALSO FOR FPA HUSO AND J5 SECDEF/OSD/ISA/AP (TOOLAN/BAILEY) JOINT STAFF/J5 (WILKES/ROBINSON/CLEMMONS) E.O. 12958: DECL: 03/09/2017 TAGS: PTER EFIN ETTC PREL KTFN RP SUBJECT: TERRORISM FINANCE: PHILIPPINE GOVERNMENT READY TO DESIGNATE THE RAJAH SOLAIMAN MOVEMENT REF: A. 06 MANILA 4252 ¶B. 06 MANILA 4166 ¶C. 06 STATE 153845 ¶D. 06 MANILA 3785 ¶E. 06 MANILA 3471 ¶F. 06 STATE 128377 ¶G. 05 MANILA 2991 Classified By: (U) Ambassador Kristie A. Kenney for reasons 1.4 (b) and (d). ¶1. (U) This is an action message -- see para 8. ¶2. (S) SUMMARY. The Philippine government is ready to move soon on listing the Rajah Solaiman Movement and a selected number of its members with the UN 1267 Sanctions Committee. The National Intelligence Coordinating Agency has prepared a separate package of "Jemaah Islamiyah related personalities," which the Philippine government also intends to designate for listing. National Intelligence Coordinating Agency Director General Garcia expressed appreciation for the standing U.S. offer to co-sponsor the designation of the Rajah Solaiman Movement, and asked that the United States consider supporting the listing of individuals associated with Jemaah Islamiyah. He requested U.S. technical assistance in reviewing both packages before they are finalized. Informal contacts with Australian Embassy counterparts have indicated that Canberra, pending coordination between capitals, might be willing to co-sponsor the Rajah Solaiman Movement designation. END SUMMARY. PHILIPPINES READY TO DESIGNATE THE RSM -------------- ¶3. (S) National Intelligence Coordinating Agency (NICA) Director General Caesar Garcia passed to emboffs on March 8 the draft Philippine government statement of case for the designation of the Rajah Solaiman Movement (RSM) and a selected number of its members for listing with the UN 1267 Al-Qaida and Taliban Sanctions Committee. Garcia said NICA had coordinated closely with 1267 Committee staff in preparing its case, but welcomed a long-standing U.S. offer of technical assistance. He asked if a U.S. Treasury expert could review the RSM statement of case before NICA referred it to the Department of Foreign Affairs for transmittal to the 1267 Committee, and requested, if possible, that the U.S. expert arrive for consultations on March 14. DESIRE TO MOVE AHEAD QUICKLY -------------- ¶4. (S) DG Garcia stated that the Philippine government wanted to move ahead quickly with the listing in order to freeze RSM finances and preempt potential RSM operations. Observing that Ahmad Santos, the jailed RSM leader, and other members could post bail or win acquittals in pending court cases, Garcia said, "we want to reduce their capability for mischief, freeze their assets, restrict their movements, and deny them safe havens." He expressed special concern about the RSM's "Mufti," Reuben Lavilla, a "die-hard Wahabist" who remains still at large. ¶5. (S) Garcia stated that he hoped the RSM designation would allow NICA to strengthen its ties with the Philippine Anti-Money Laundering Council. U.S. Financial Enforcement Advisor Meisner and Federal Bureau of Investigation Supervisory Special Agent Corkery will meet with NICA representatives on March 9 to discuss practical measures to ensure coordination with the Anti-Money Laundering Council and the effective identification and seizure of RSM assets. POTENTIAL AUSTRALIAN INTEREST IN CO-SPONSORSHIP -------------- -- ¶6. (S) Garcia expressed appreciation for the U.S. offer to MANILA 00000781 002 OF 002 support this first-ever Philippine lead in listing a new terrorist entity, and wondered if other countries would back the initiative. He agreed that we could informally share the Philippine draft with Australian counterparts. Australian Embassy Deputy Head of Mission Steve Scott told Deputy Pol/C that there was interest in Canberra in pursuing co-sponsorship, pending further coordination between capitals. Scott opined that Great Britain, among others, might also be willing to support designation. SEPARATE DESIGNATION OF "JI-LINKED PERSONALITIES" -------------- -------------- ¶7. (S) DG Garcia said the Philippines also intended to pursue a second designation package of "Jemaah Islamiyah-linked" personalities. Consisting of "rogue" elements of the Moro Islamic Liberation Front (MILF),these individuals, whom he claimed the MILF had already disowned, were linked to Jemaah Islamiyah training camps in the southern Philippines. Garcia asked for technical assistance in reviewing this package as well, and expressed hope that the U.S. would also consider co-sponsoring designation of these individuals. (Note: The MILF has disowned certain former members who have ties to JI; we do not believe designating such individuals would adversely effect the MILF peace process.) ¶8. (S) COMMENT AND ACTION REQUEST: The Philippine initiatives are welcome and timely. Embassy has passed to S/CT and EAP/MTS via email copies of the draft Philippine submission for review, and believes that U.S. Treasury technical assistance will be important to ensuring the success of this first-ever Philippine lead in adding a new entity to the 1267 Committee list. Embassy requests that the Department coordinate immediately with Treasury to ensure that a financial terrorism expert comes to Manila for consultations on the Philippine government's draft 1267 submissions. Visit Embassy Manila's Classified website: http://www.state.sgov.gov/p/eap/manila/index. cfm KENNEY