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