Identifier
Created
Classification
Origin
08DHAKA1146
2008-11-03 11:06:00
CONFIDENTIAL
Embassy Dhaka
Cable title:  

INTERNATIONAL ISLAMIC RELIEF ORGANIZATION (IIRO)

Tags:  EFIN PINR PREL PTER KTFN BG UN 
pdf how-to read a cable
VZCZCXRO1569
OO RUEHCI
DE RUEHKA #1146/01 3081106
ZNY CCCCC ZZH
O 031106Z NOV 08
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7659
INFO RUEHLM/AMEMBASSY COLOMBO 8696
RUEHIL/AMEMBASSY ISLAMABAD 2423
RUEHJA/AMEMBASSY JAKARTA 0268
RUEHBUL/AMEMBASSY KABUL 0123
RUEHKT/AMEMBASSY KATHMANDU 9934
RUEHML/AMEMBASSY MANILA 1479
RUEHNE/AMEMBASSY NEW DELHI 0912
RUEHCI/AMCONSUL KOLKATA 1534
RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
RHHMUNA/USCINCPAC HONOLULU HI
C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001146 

SIPDIS

TREASURY FOR OFAC
DEPT FOR SCA/PB AND EEB/ESC/TP
JUSTICE FOR OPDAT

E.O. 12958: DECL: 11/03/2018
TAGS: EFIN PINR PREL PTER KTFN BG UN
SUBJECT: INTERNATIONAL ISLAMIC RELIEF ORGANIZATION (IIRO)
SEEKS TO ACCESS FUNDS FROZEN BY ISLAMI BANK BANGLADESH

Classified By: Ambassador James F. Moriarty. Reasons 1.4(b) and (d)

Summary
--------

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001146

SIPDIS

TREASURY FOR OFAC
DEPT FOR SCA/PB AND EEB/ESC/TP
JUSTICE FOR OPDAT

E.O. 12958: DECL: 11/03/2018
TAGS: EFIN PINR PREL PTER KTFN BG UN
SUBJECT: INTERNATIONAL ISLAMIC RELIEF ORGANIZATION (IIRO)
SEEKS TO ACCESS FUNDS FROZEN BY ISLAMI BANK BANGLADESH

Classified By: Ambassador James F. Moriarty. Reasons 1.4(b) and (d)

Summary
--------------


1. (C) Recent press accounts suggested that Islami Bank of
Bangladesh had recently released money frozen for two years
belonging to the International Islamic Relief Organization
(IIRO). Sister organizations of the IIRO have ties to al-
Qaida and have been listed as terrorist-affiliated by the
United Nations and the United States. In 2006, the United
States made clear to the Bangladesh Bank (BB) our concerns
regarding the IIRO. The BB at that time relayed these
concerns to the Islami Bank, which froze the IIRO,s
accounts. Post,s recent discussions with the BB have proven
the press reports to be false and the IIRO accounts with
Islami Bank remain frozen. During this dialogue, the BB
raised a larger question beyond Bangladesh. Specifically,
when certain branches of an organization have been listed as
terrorist- affiliated, what legal sanctions, if any, can be
applied against unnamed branches of that entity?

Background 2006-2007
--------------


2. (C) The International Islamic Relief Organization (IIRO)
is a Saudi-based charity with branches throughout the world.
Abd Al-Hamid Sulaiman Al-Mujil is the Executive Director of
the International Islamic Relief Organization (IIRO) Eastern
Province branch office in the Kingdom of Saudi Arabia. The
IIRO Indonesia and IIRO Philippines branch offices have
received support from IIRO Eastern Province (EP) offices,
which are controlled by Al-Mujil, a major fund-raiser for
Jemaah Islamiyah (JI) and Abu Sayyaf Group (ASG),two UNSCR
1267 listed groups.


3. (C) Because of their association with the al-Qaida
network, including JI and ASG, the United Nations in 2006
included Al-Mujil and the IIRO Indonesia and Philippines
branches on the UN 1267 Committee list of individuals/
entities subject to sanctions pursuant to UNSC Resolution

1267. The United States Treasury Department also designated

domestically these names pursuant to US Counter-
Terrorism authorities (Executive Order 13224). The United
Nations and the United States did not specifically designate
the Bangladesh branch of IIRO under their respective
authorities.


4. (C) As of August 2006, all three names had been
designated by the United States and the United Nations with
the sole exception being the then-pending request at the
United Nations to designate the IIRO Indonesian branch. At
that time, the US Embassy in Bangladesh sent a letter to the
GOB regarding the then-ongoing designation process involving
the IIRO branches and director. The Embassy urged the GOB to
take action to freeze the assets of and block any
transactions by this individual and these two branches and
implement the other sanctions (arms embargo and travel ban).
In the case of IIRO-Indonesia, the Embassy urged immediate
action because of its involvement with JI and al Qaida.
Furthermore, the Embassy encouraged the GOB to check
carefully for any funds, financial assets or economic
resources, including property or interests in property owned
or controlled directly or indirectly by Al-Mujill and these
branches in Bangladesh. The Embassy urged the GOB to share
relevant information concerning actions undertaken by the GOB
or the activities of the individual or entities in Bangladesh.





Confusing Media Reports in October 2008
--------------


5. (U) In early October, a Bangladesh newspaper, The Daily
Star, issued a report entitled "Bangladesh Bank Wants to

DHAKA 00001146 002 OF 002


Activate IIRO Accounts Frozen for Alleged Terrorist Link."
The report indicated that the Islami Bank of Bangladesh,
which held IIRO accounts, had lodged a request with the
Bangladesh Bank to re-activate the frozen accounts of IIRO.
According to the media, the Islami Bank had voluntarily
frozen the IIRO bank accounts, which the IIRO now wished to
use to fund a recently-approved Bangladesh charity project.



6. (U) Toward the end of October, a subsequent article
appeared in another Bangladesh newspaper, Dainik Ittefaq,
with the title, "Islami Bank Unfreezes Account of
International Islamic Relief Organization" According to the
report, the Islami Bank had allowed IIRO to withdraw about
100 million Taka (approximately 143,000 USD) from previously
frozen accounts without the approval of the BB. In response,
the BB stated at a press conference that all Bangladesh
accounts of the IIRO remained frozen, noting the BB had not
given permission to Islami Bank to unfreeze the accounts and
had asked the Islami Bank to investigate the matter. Media
reports also confirmed that the Islami Bank had described the
report of the unfreezing of the IIRO account as baseless and
fabricated.

Clarifications from the BB
--------------


7. (C) Since the publication of the first article in early
October 2008, the Embassy has communicated directly and on a
regular basis with BB leadership concerning the status of the
IIRO accounts, culminating in an October 28, 2008, meeting
between Embassy and Bank officials. According to officials,
based on the United Nation's 1207 designation of Al-Mujil and
IIRO Indonesia and Philippines branch offices in 2006-2007,
BB advised Islami Bank in 2006 to "handle carefully" the IIRO
bank accounts. BB representatives confided to us on October
28 that they did not freeze the IIRO's Bangladesh accounts
because the United Nation's designation list did not contain
a specific reference to individuals or entities associated
with IIRO in Bangladesh, thereby making the use of sanctions
pursuant to 1267 problematic. The BB speculated that the
Islami Bank had frozen the accounts unilaterally.


8. (C) According to the BB, Islami Bank made a request to
the BB for permission to access the IIRO accounts in
Bangladesh earlier this year. The BB asked for guidance on
the request from the Foreign Ministry and received a vague
response which did little to help with their deliberations.
The BB also has involved the Home Affairs Ministry in
discussions. The GOB has not yet made a final determination,
but the accounts remain frozen pending further investigation.
After seeing media reports earlier in October, we registered
our grave concern and opposition to moves which would allow
IIRO access to its bank accounts at Islami Bank, given IIRO's
ties to al-Qaida.

Comment
--------------


9. (C) The BB has shown itself to be a positive actor in
what has been a confusing situation. The Bank has proven
open and frank in discussing this sensitive matter. The
Embassy will continue to engage the BB closely. Although
perhaps not required to do so legally, the Ismali Bank may be
seeking the GOB,s blessing to unfreeze the accounts in order
to prevent future accusations that it was acting alone in
giving IIRO access to its controversial assets. The Embassy
will be contacting the NGO Affairs Bureau of the GOB, which
overseas the Bangladesh activities of IIRO and other NGOs.
The non-designation of the IIRO Bangladesh branch could drive
the discussion of the future available options. The issue
has already sparked a spirited e-mail exchange between the
concerned US agencies and Post. We look forward to final
guidance from Washington regarding U.S. policy towards
non-designated entities clearly affiliated with entities
listed under UNSCR 1267 and under U.S. domestic law.
Moriarty