USG'S SUCCESSFUL TRAINING FOR SAUDI ARABIA'S

C O N F I D E N T I A L RIYADH 000056

SIPDIS

SIPDIS

PLEASE PASS TO FBI JOAN BUCKLEY AND FINCEN AHMED ELBASHARI

E.O. 12958: DECL: 01/10/2017
TAGS: EFIN PTER KTFN ETTC SA
SUBJECT: USG'S SUCCESSFUL TRAINING FOR SAUDI ARABIA'S
FINANCIAL INTELLIGENCE UNIT

REF: A. RIYADH 8987

B. TREASURY 212014Z

Classified By: DEPUTY CHIEF OF MISSION MICHAEL GFOELLER FOR REASONS 1.4
(B) AND (D).


1. (U) Summary. On December 20, 2006, EconOff and FBI
representative to the Terrorist Financing Operations Section
(TFOS),offered a one-day seminar to the Saudi Arabian
Financial Intelligence Unit (SAFIU) geared towards basic
analytical and investigative techniques for terrorism finance
and money laundering investigations. Due to the high number
of Saudi participants, Post will offer an additional training
seminar in February geared towards specific real life
financial crimes cases. End Summary.


2. (C) In mid-December, LEGAT and TFOS Representative
proposed to the SAFIU's General Supervisor, Colonel Fah'd
Al-Maglooth, and Deputy Director, Khalid Luhaidan, a joint
initiative with the SAFIU to embed TFOS representative into
the SAFIU for hands on training. Due to the limited success
of the Joint Terrorist Finance Task Force (JTFTF) LEGAT
thought this would be the most beneficial next step forward.
The purpose of embedding TFOS representative is to work on
cases of mutual interest and to assist the SAFIU in
developing methods and processes for its investigations. The
FBI will deliver a proposal to the SAFIU within the next few
weeks.


3. (U) On December 20, TFOS representative and EconOff
presented a one-day seminar on basic analytical concepts and
methods to the SAFIU. Approximately 35 SAFIU personnel
attended the session and actively participated in
discussions. There was a great deal of confusion between the
roles of the FBI's TFOS and FINCEN. The SAFIU was under the
impression that FINCEN conducted law enforcement type
investigations related to financial crimes. Also, the SAFIU
did not understand the concept of analysis and its
broad/narrow implications. TFOS representative and EconOff
explained to the SAFIU the roles of law enforcement entities
and FINCEN regarding financial crimes. Also, TFOS
representative and EconOff explained and provided examples of
analysis and the types of analysis that can be done related
to financial crimes.


4. (C) Currently, the SAFIU is investigating investment
groups and investment mechanisms for terrorism finance. In
the future, the SAFIU will concentrate on financial
transactions stemming from travel agencies in the Kingdom.
Mr. Luhaidan indicated the difficulty they are having with
terrorism finance cases and prosecuting such crimes.


5. (C) Comment. The SAFIU is only a year old, with very
little organization and methodology in place to combat
financial crimes. After spending an afternoon with the SAFIU
it was obvious that it needs law enforcement/investigative
training regarding financial crimes in order to acquire the
day-to-day concepts that help solve financial crimes. The
SAFIU operates as a hybrid of FINCEN and law enforcement
agencies (i.e. The FBI). A small percentage of what the
SAFIU does is collect Suspicious Transaction Reports (STRs).
Rather, the SAFIU spends a lot of its time gathering and
analyzing specific information related to financial crimes
and the suspects of these crimes (i.e., criminal history,
suspects background, financial records).


6. (C) Comment Continued. In early December 2006, the
SAFIU established a Consultancy Division independent from the
other operations of the SAFIU. The Consultancy Division's
Director, Dr. Hamza al-Salem, had previously been
responsible for all the training and getting the SAFIU on par
with other functional FIUs. The Consultancy Division has now
been dismantled. The SAFIU seems to be in the midst of a
personnel re-organization and a re-defining its operations
and goals. End Comment.
OBERWETTER