US-UAE JOINT COUNTERPROLIFERATION SEMINARS HIGHLIGHT

UNCLAS SECTION 01 OF 03 ABU DHABI 000743

C O R R E C T E D C O P Y - PARA MARK ADDED (12 & 15)

SIPDIS
SENSITIVE
STATE FOR L, T, ISN/ECC, ISN/CPI, NEA/ARP

E.O. 12958: N/A
TAGS: ECON PREL KCEM KOMC ETTC AE
SUBJECT: US-UAE JOINT COUNTERPROLIFERATION SEMINARS HIGHLIGHT
IMPORTANCE OF EXPORT CONTROLS AND INTERNATIONAL COOPERATION

REF: ABU DHABI 701

ABU DHABI 00000743 001.2 OF 003


UNCLASSIFIED BUT SENSITIVE; PLEASE HANDLE ACCORDINGLY

Summary
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1. As part of the Export Control and Related Border Security (EXBS)
program, the US and the UAE held a two-day counter-proliferation
workshop for prosecutors and judges in Dubai. The workshop was held
under the sponsorship of the UAE Minister of Justice, His Excellency
Hadif J. Al Dhahiri, and highlighted the UAE's new federal law on
export and import controls, Federal 13, which was passed in August

2007. In addition, a third day of discussions was held at the
Sharjah Police Academy for UAE law enforcement officials. In all,
the three-days of discussions provided an opportunity for the US and
UAE prosecutors, judges, and police to share experiences, best
practices, and challenges in how to effectively implement and apply
export controls. In addition, UAE representatives discussed ways in
which the US and the UAE could work together on these matters,
including concluding negotiations on a Mutual Legal Assistance
Treaty (MLAT). End Summary.

Background
--------------


2. During the September 2007 legal and regulatory workshop, the
legal advisor for the Dubai police discussed the need to conduct
outreach to its prosecutors and judges on the new export control
law. (Law 13 of 2007 re: Commodities Subject to Import and Export
Control, reftel.) In February 2008, during the Counterproliferation
Task Force (CTF),the UAE asked for this training and ISN A/AS
McNerney said we would deliver. Through support of the Export
Control and Related Border Security (EXBS) program, DOJ/OPDAT
proposed a series of seminars and workshops to UAE with respect to
implementing its the new law, which contains significant criminal
penalty provisions. The purpose of the workshops was to advance the
Export Control and Related Border Security's (EXBS) agenda by
encouraging enforcement and familiarizing UAE prosecutors and judges
with the challenges associated with enforcing export control laws
and best practices for dealing with them.


3. On June 3-5, 2008, EXBS sponsored two export control seminars
with interagency support and participation from DOS, FBI, ICE,
DOC/BIS, and OPDAT: a 2-day seminar for prosecutors and judges at
the Dubai Institute of Advanced Legal and Judicial Studies on June
3-4, and a 1-day seminar for UAE investigators at the Sharjah Police
Academy on June 5. Both seminars focused on actual case studies
drawn from US experiences and were presented by US law enforcement
agents and prosecutors.


4. The seminars provided an opportunity for US and UAE prosecutors,
judges, and law enforcement officials to share experiences, best
practices, and challenges in how most effectively to implement and
apply export controls, and to ensure that WMD, their delivery
systems, related technologies, and advanced conventional weapons are
not put into the hands of proliferators or those who wish to divert
legitimate trade for improper purposes. UAE officials participated
actively asking questions and speaking candidly about proliferation
risks associated with UAE's ports. They also provided details
regarding the first case being prosecuted under UAE's law, involving
a transshipment of zirconium metal (septel). Over 35 judges and
prosecutors attended the first two days, and over 40 law enforcement
officials attended the third day.


5. UAE officials also expressed willingness to establish legal
mechanisms for cooperation with the USG in combating proliferation.
However, the same officials noted that the potential for future
cooperation through official legal channels on WMD remains
obstructed on account of the absence of a formalized Mutual Legal
Assistance Treaty (MLAT),and the inconclusive negotiations that
were last held in Washington in February 2005. Two of the UAE
delegates to those negotiations attended the seminars.

Opening Sessions Confirm Risks to UAE Ports
--------------


6. Charge opened the workshop, stressing the importance of
effective export controls in halting the proliferation of goods and
technology that could be used to develop weapons of mass destruction
(WMD). He also congratulated the UAE for passing a comprehensive
export control law and stressed the need for US-UAE cooperation to
increase prosecutions of export control violations. Counselor Bakri
Abdullah Hasan of the Office of Public Prosecution in Dubai provided
a detailed overview of UAE's new federal law on export and import
controls. Counselor Hasan also acknowledged that Dubai ports were
used as transshipment points as part of the AQ Khan proliferation
network. He stated that this type of activity makes the UAE aware
of the dangers and stressed the need to implement comprehensive
export control laws and regulations.

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U.S. Presentations Emphasize Complexity of Export Control Cases and
Importance of Bilateral Cooperation
-------------- --------------


7. The U.S. delegation included law enforcement officials and
prosecutors with experience investigating and prosecuting export
control violations, including: (1) Thomas Madigan, Acting Director
Office of Export Enforcement, U.S. Department of Commerce, Bureau of
Industry and Security (DOC BIS); 2) Edward O'Callaghan, Chief of the
Terrorism and National Security Unit in the U.S. Attorney's Office
for the Southern District of New York; (3) Ryan Fayhee, Trial
Attorney, National Security Division, U.S. Department of Justice;
(4) James Warwick, U.S. Attorney's Office for the District of
Maryland; (5) John Burgess, Investigator, Immigration and Customs
Enforcement; (6) Jay Manning and James Ferris, Federal Bureau of
Investigation.


8. The workshop began with a brief discussion of U.S. law and the
roles and responsibilities of each U.S. government agency. AUSA
O'Callaghan overviewed the U.S. task force concept, and how "leads"
are collected from a variety of federal and local sources as part of
a cooperative effort to identify and prosecute export control
violations. Following this discussion, in-depth case studies were
presented on four major U.S. export control cases:

-- Asher Karni case: This case focused on procurement of sensitive
U.S. commodities for re-export to Pakistan (diverted through South
Africa). This case illustrated the importance of private sector and
bilateral governmental cooperation. Karni was arrested and pleaded
guilty, while Khan remains at large.

-- Cirrus Electronics case: This case involved front companies in
the U.S. and Singapore that were being used to procure U.S. origin
controlled electronic parts to India without a license. This case
illustrated interagency cooperation between FBI and Commerce
investigators and highlighted the fundamental need for bilateral
cooperation agreements between the US and other important
importing/exporting countries.

-- U.S. v. Yousef Bousvash: This case involved an Iranian national
who had attempted to obtain 15 shipments of U.S. munitions list
items without a license, and to transship the items to Iran through
a front company located in Dubai. This case illustrated many of the
sophisticated measures taken by criminals to divert goods to
countries of concern, including setting up front companies.

-- U.S. v. Haji Subandi, et al: This case involved years of
undercover operations before all brokers were arrested and charged
with violating U.S. export control laws.


9. The interactive case study sessions were designed to cover all
critical parts of export control investigations, from case
initiation through trial, plea, and sentencing. The case studies
highlighted the international nature of export control cases, the
need for advanced enforcement capabilities and undercover
investigative skills, and the importance of establishing and
maintaining strong bilateral cooperation relationships with key
importing/exporting countries. Each of the focus cases was
initiated through anonymous or confidential sources and
intelligence. The studies demonstrated that export control cases are
very complex, can take years to be investigated and prosecuted, and
often have mixed outcomes as reflected by the number of individuals
charged with export control violations who remain at large in other
countries.

UAE Comments and Questions Regarding Case Studies
-------------- --------------

10. By all accounts, the EXBS seminars represent the first
organized effort by the UAEG to educate prosecutors, judges and
investigators regarding UAE Federal Law 17 of 2007. Nonetheless,
UAE officials' comments throughout the event indicated a strong
understanding of the importance of the law. Many of the
participants expressed deep appreciation for workshops and indicated
that future programs would be welcome. Some of the comments and
questions included: (1) Role of undercover agents and concerns
regarding potential entrapment of defendants when using undercover
agents; (2) Role of prosecutors and judges in the U.S. judicial
system; (3) Difficulties in implementing new legislation, especially
one with many different agencies involved; (4) Time frame it takes
in order to put these cases together; (5) Importance of
international cooperation and intelligence sharing; (6) Concerns
regarding pressure from companies to issue licenses as well as
corruption within certain companies -- how to ensure companies
comply with the law; (7) How the U.S. regulates companies; (8)
Concerns regarding the extradition of foreign nationals; and (9)
Jurisdiction over U.S. controlled items in other countries.

11. UAE officials expressed concerns regarding regulating companies
and the difficulty in doing so in this environment, especially when
the UAE is trying to promote free enterprise. Many raised concerns

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12. (SBU) Through the course of the workshop, concerns were raised
regarding the lack of a Mutual Legal Assistance Treaty (MLAT).
Although a 9-member UAE delegation was sent to WashDC in February
2005, no treaty was negotiated or signed, and there was a general
sense of frustration expressed by some participants. Two members of
the UAE delegation to the 2005 talks were present in the workshop:
Dr. Mohamed Al Kamali, Director of the UAE Institute of Training and
Judicial Studies; and Judge Younis Yousif Al Redha, Chief Judge of
the Sharjah Court of Appeals. Judge Al Redha and Counselor Bakri
Abdullah Hasan publicly expressed regret that USG does has not have
an MLAT and an Extradition Treaty with UAE, which they described as
necessary before UAE law enforcement and prosecutors can legally
provide mutual legal assistance under UAE laws. Participants
expressed that these mutual legal assistance agreements would be
critical to future cooperation among law enforcement channels on
export control cases.

Law Enforcement Officials Stress Cooperation and Intelligence
Sharing
-------------- --------------


13. The second seminar was held on June 5, 2008 for law enforcement
officials at the Sharjah Police Academy. The seminar was well
received by the approximately 40 police and law enforcement
officials who attended. U.S. attorneys explained the importance of
working closely throughout the investigative process with their law
enforcement colleagues to ensure a successful outcome. U.S.
enforcement officials stressed the need for undercover operations,
intelligence sharing, undercover informants, industry cooperation,
physical surveillance, computer surveillance, and search warrants.
Law enforcement officials seemed very interested in the new law and
open to law enforcement cooperation in this area. Inquiries were
made as to what the U.S. shares with other countries as far as
intelligence and how the U.S. goes about undertaking very long
investigations, many of which take years to prosecute. Officials
also inquired about working with private ports and how to cooperaten
with the private sector. U.S. officials stressed the need to send a
message which, by prosecuting individuals and companies, would deter
future violations.


14. Major Mohammed Al-Kitbi, MoI Coordinator for Anti-Trafficking in
Weapons of Mass Destruction, gave a broad overview of the UAE export
control law, highlighting the need for the UAE to implement the law
to ensure its own security and to comply with obligations under
international agreements. He pointed out that the UAE is currently
amending parts of the law to make it easier to implement. One
important change will be to increase the items on the control list;
however, it was not clear if such amendments would increase the
number of controlled commodities to include all the items on the
four multilateral control regime lists.


Positive Collaboration and Next Steps
--------------


15. (SBU) Overall the export control seminars achieved their aim, and
the UAE expressed appreciation for the candid nature of the discussions
and expressed interest in follow-up workshops and cooperation,
including sending UAE officials to the U.S. to learn about DOJ's
role in prosecuting strategic trade cases. The lack of formal
cooperation mechanisms, such as a Mutual Legal Assistance Treaty,
was highlighted as an impediment to more formal cooperation and
coordination in the law enforcement and judicial arenas.
Quinn