ESTONIA'S STANCE ON ILLEGAL CASH COURIERS

UNCLAS TALLINN 000121

SIPDIS

DEPT FOR EUR/NB AND EEB/ESC/TFS Katherine Leahy and Leanne Cannon
S/CT Patty Hill, Anne Galer and Gary Novis

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: EFIN ETTC KTFN LE PREL PTER EN
SUBJECT: ESTONIA'S STANCE ON ILLEGAL CASH COURIERS

REF: STATE 16120


1. (U) Econoff delivered reftel points to Jaap Ora, Director of the
1st
Division of the MFA's Policy Planning Department - which is
responsible for
coordinating Terrorist Financing issues for the GOE.


2. (U) Estonia's main legal instrument in the fight against
terrorist financing
and illegal cash transactions is the January 2004 Money Laundering
and Terrorist
Financing Prevention Act, as amended. According to the Act, credit
and
financial institutions are required to identify all individuals or
representatives who carry out cash transactions above EEK 100,000
(approximately
$8,600) or non-cash transactions above EEK 200,000 (approximately
$17,100). An
amendment to the MLTFPA that came into force in March 2005 required

identification of all clients who use the services of any financial
institution
for the first time, while the method of identification should enable
re-
identification, Failure to comply with the identification
requirement brings
along criminal liabilities.


3. (U) Beginning June 15, 2007, control over cash entering Estonia
from outside
the EU will be based on the adoption of EU Regulation (EC) No
1889/2005 of
October 26, 2005. When this regulation enters into force, fines
will be
assessed either for failing to declare, or illegally declaring cash.
At the
present time, the Estonian Tax and Customs Board (TCB) controls the
external
borders of the EU at the border with Russia and at the Tallinn
Airport. All
main border crossing points are controlled 24 hours a day.
According to Mr. Ora
at MFA, TCB staff at the border crossing points "...have been
trained to uncover
illegal items from vehicles, goods, passengers and their luggage."
The TCB also
employs a computer-based operational risk analysis system, assessing
passengers
crossing the borders. The border crossing points are supplied with
detection
technology such as x-ray machines, endoscopes and video surveillance
to uncover
illegal items. TCB expects an automatic number plate detection
system to come
on line in the near future.


4. (U) Additionally, starting in May 2007, all private banks in
Estonia will
voluntarily adopt a security measure which mandates the use of an
electronic ID
card, or a PIN-password calculator, for wire transfers of cash
cumulatively
totaling over EEK 10,000 (USD 820) per day. Currently, each bank
can set its
own limits. Although Estonia's Citizenship and Immigration Board
has issued
over a million national ID cards, estimates are that only about
40,000 people in
the country regularly use them for electronic transactions. The
rest use them
only for identification and travel within the EU.


5. (U) The main agencies responsible for monitoring terrorist
finance issues
are the Financial Intelligence Unit of the Central Criminal Police,
and the
Customs Control Department of the Tax and Customs Board.
Additionally, the
Security Police Board is involved in terrorism-related matters.

GOLDSTEIN