Identifier
Created
Classification
Origin
07TAIPEI1163
2007-05-24 09:16:00
UNCLASSIFIED
American Institute Taiwan, Taipei
Cable title:
Legislation against Financing Terrorism
how-toVZCZCXRO5137 RR RUEHGH DE RUEHIN #1163/01 1440916 ZNR UUUUU ZZH R 240916Z MAY 07 FM AIT TAIPEI TO RUEHC/SECSTATE WASHDC 5368 RUEATRS/DEPT OF TREASURY WASHDC INFO RUCPDOC/USDOC WASHDC RUEHBK/AMEMBASSY BANGKOK 3703 RUEHBJ/AMEMBASSY BEIJING 6819 RUEHUL/AMEMBASSY SEOUL 8661 RUEHGP/AMEMBASSY SINGAPORE 6910 RUEHKO/AMEMBASSY TOKYO 8797 RUEHML/AMEMBASSY MANILA 0063 RUEHJA/AMEMBASSY JAKARTA 4077 RUEHKL/AMEMBASSY KUALA LUMPUR 3745 RUEHHI/AMEMBASSY HANOI 3316 RUEHBY/AMEMBASSY CANBERRA 4517 RUEHWL/AMEMBASSY WELLINGTON 1788 RUEHHK/AMCONSUL HONG KONG 8075 RUEHGH/AMCONSUL SHANGHAI 1107 RUEHGZ/AMCONSUL GUANGZHOU 0278
UNCLAS SECTION 01 OF 02 TAIPEI 001163
SIPDIS
SIPDIS
STATE PLEASE PASS USTR
STATE FOR EAP/RSP/TC, EAP/EP
USTR FOR ALTBACH and Stratford
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF
GOVERNORS, AND SAN FRANCISCO FRB/TERESA CURRAN AND NY FRB MARIA
BOLIS
E.O. 12958: N/A
TAGS: EINV EFIN ECON PINR TW
SUBJECT: Legislation against Financing Terrorism
SUMMARY
-------
UNCLAS SECTION 01 OF 02 TAIPEI 001163
SIPDIS
SIPDIS
STATE PLEASE PASS USTR
STATE FOR EAP/RSP/TC, EAP/EP
USTR FOR ALTBACH and Stratford
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF
GOVERNORS, AND SAN FRANCISCO FRB/TERESA CURRAN AND NY FRB MARIA
BOLIS
E.O. 12958: N/A
TAGS: EINV EFIN ECON PINR TW
SUBJECT: Legislation against Financing Terrorism
SUMMARY
--------------
1. Taiwan is racing to pass new legislation against financing
terrorism which the Egmont Group (an umbrella group of international
Financial Intelligence Units) has required its members to complete
prior to the end of May 2007. The pending legislation would impose
heavy penalties for financing terrorism. END SUMMARY.
Legislation Delayed
--------------
2. Following 911, Taiwan's Ministry of Justice submitted a draft
"Anti-Terrorism Act" (modeled on the U.S. Patriot Act) to the
Executive Yuan (EY) in November 2002 which was forwarded to the
Legislative Yuan (LY) in December 2003. However, the opposition KMT
and PFP Parties have not allowed the bill to pass.
Concern over Human Rights Abuse
--------------
3. The opposition parties have been concerned that the bill's
expansion of the administrative branch's authority could lead to
human rights abuses. Some opposition party legislators allege the
bill was written primarily to please the United States.
Pressure on LY
--------------
4. On May 21, the Ministry of Justice Investigation Bureau (MJIB)
issued a press release that the Egmont Group requires its members to
complete legislation against financing terrorism prior to the end of
May 2007, and that the Egmont Group may expel Taiwan as a member if
Taiwan fails to meet the May 31 deadline. Publicizing the deadline
puts heavy pressure on legislators who will be held responsible
should Taiwan lose its Egmont Group membership. In 1998 Taiwan
acceded to the Egmont Group, which is one of the very few
international organizations in which Taiwan is allowed membership.
5. An official at the Ministry of Justice (MOJ) told AIT/T that the
MJIB issued the press release to speed up LY action on the
legislation, but that the Egmont Group is unlikely to expel Taiwan
from the organization while another 24 members still don't have any
anti-terrorism law. However, he added, the MOJ will try its best to
push relevant bills through the legislature prior to the deadline of
May 31.
Convenient Way
--------------
6. To separate the effort against financing terrorism from the
concerns about expanding police powers, the MOJ decided in early May
to move three articles related to financing terrorism from the
proposed Anti-Terrorism Act to a separate bill designed to amend the
Money Laundering Control Act (MLCA),already submitted to the LY on
May 8.
Definition and Penalties
--------------
7. Article 2 of the MLCA defines "financing terrorism" as funding
terrorist activities (including homicide, kidnapping, hijacking,
etc.) to intimidate the public based on political, religious,
tribal, and other beliefs. Article 3 makes "financing terrorism" as
a felony. According to Article 11, violations can be subject to a
jail term of 1-7 years and/or a fine up to NT$10 million
(US$303,000).
TAIPEI 00001163 002 OF 002
YOUNG
SIPDIS
SIPDIS
STATE PLEASE PASS USTR
STATE FOR EAP/RSP/TC, EAP/EP
USTR FOR ALTBACH and Stratford
USDOC FOR 3132/USFCS/OIO/EAP/WZARIT
TREASURY FOR OASIA/LMOGHTADER
TREASURY ALSO PASS TO FEDERAL RESERVE/BOARD OF
GOVERNORS, AND SAN FRANCISCO FRB/TERESA CURRAN AND NY FRB MARIA
BOLIS
E.O. 12958: N/A
TAGS: EINV EFIN ECON PINR TW
SUBJECT: Legislation against Financing Terrorism
SUMMARY
--------------
1. Taiwan is racing to pass new legislation against financing
terrorism which the Egmont Group (an umbrella group of international
Financial Intelligence Units) has required its members to complete
prior to the end of May 2007. The pending legislation would impose
heavy penalties for financing terrorism. END SUMMARY.
Legislation Delayed
--------------
2. Following 911, Taiwan's Ministry of Justice submitted a draft
"Anti-Terrorism Act" (modeled on the U.S. Patriot Act) to the
Executive Yuan (EY) in November 2002 which was forwarded to the
Legislative Yuan (LY) in December 2003. However, the opposition KMT
and PFP Parties have not allowed the bill to pass.
Concern over Human Rights Abuse
--------------
3. The opposition parties have been concerned that the bill's
expansion of the administrative branch's authority could lead to
human rights abuses. Some opposition party legislators allege the
bill was written primarily to please the United States.
Pressure on LY
--------------
4. On May 21, the Ministry of Justice Investigation Bureau (MJIB)
issued a press release that the Egmont Group requires its members to
complete legislation against financing terrorism prior to the end of
May 2007, and that the Egmont Group may expel Taiwan as a member if
Taiwan fails to meet the May 31 deadline. Publicizing the deadline
puts heavy pressure on legislators who will be held responsible
should Taiwan lose its Egmont Group membership. In 1998 Taiwan
acceded to the Egmont Group, which is one of the very few
international organizations in which Taiwan is allowed membership.
5. An official at the Ministry of Justice (MOJ) told AIT/T that the
MJIB issued the press release to speed up LY action on the
legislation, but that the Egmont Group is unlikely to expel Taiwan
from the organization while another 24 members still don't have any
anti-terrorism law. However, he added, the MOJ will try its best to
push relevant bills through the legislature prior to the deadline of
May 31.
Convenient Way
--------------
6. To separate the effort against financing terrorism from the
concerns about expanding police powers, the MOJ decided in early May
to move three articles related to financing terrorism from the
proposed Anti-Terrorism Act to a separate bill designed to amend the
Money Laundering Control Act (MLCA),already submitted to the LY on
May 8.
Definition and Penalties
--------------
7. Article 2 of the MLCA defines "financing terrorism" as funding
terrorist activities (including homicide, kidnapping, hijacking,
etc.) to intimidate the public based on political, religious,
tribal, and other beliefs. Article 3 makes "financing terrorism" as
a felony. According to Article 11, violations can be subject to a
jail term of 1-7 years and/or a fine up to NT$10 million
(US$303,000).
TAIPEI 00001163 002 OF 002
YOUNG