TERRORIST FINANCE: REQUEST FOR POST ASSISTANCE IN

S E C R E T RIYADH 000305 SIPDIS NOFORN SIPDIS STATE PASS TO DAVID BENDANA, TREASURY PASS TO HOWARD MENDELSOHN, NSC PASS TO ADNAN KIFAYAT E.O. 12958: DECL: 02/13/2017 TAGS: EFIN ETTC KTFN PREL PTER SA SUBJECT: TERRORIST FINANCE: REQUEST FOR POST ASSISTANCE IN THE EVALUATION/ASSESSMENT OF TERRORIST FACILITATORS AND INCITERS DESIGNATIONS: POST RESPONSE REF: RIYADH 08825 Classified By: Economic Counselor Robert Silverman for reasons 1.5 (b), (d),and (g). ¶1. (S/NF) Embassy Riyadh appreciates the opportunity to comment on the effectiveness of tranche I designations under the Terrorist Facilitators and Inciters Initiative. While the Mission of Saudi Arabia fully supports the objective of this initiative - to sanction individuals that both financially and ideologically support terror organizations - we continue to have concerns regarding the effectiveness of the initiative in the Saudi and Gulf regional context (see reftel). Potential Effectiveness in the Saudi Context -------------- ¶2. (S/NF) We have as of yet no direct evidence concerning the impact of tranche I designations in the Kingdom of Saudi Arabia and are unaware of any bank account closures in the host country as a result of the designations. ¶3. (S/NF) As detailed in reftel, the Kingdom of Saudi Arabia takes every opportunity to highlight their commitment to comply with all UNSCR 1267 Sanctions Committee designations, including designations of Saudi nationals and organizations in Saudi Arabia. The SAG continues to take proactive steps to deter radical ideologue behavior through a program that monitors radical clerics; co-opts radical clerics; and removes uncooperative radical clerics. Any designation of Saudi entities as part of the Terrorist Facilitators and Inciters Initiative could be perceived by the Saudis as an attempt to undercut their efforts to deter radical preaching through co-optation. Designations under this Initiative should thus be closely coordinated with the SAG. OBERWETTER