NEPAL/TERRORISM FINANCE: NEW FINANCIAL INFORMATION

					  UNCLAS KATHMANDU 000743 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PTER PREL EFIN KTFN NP
SUBJECT: NEPAL/TERRORISM FINANCE: NEW FINANCIAL INFORMATION 
UNIT TO INCREASE ENGAGEMENT IN DESIGNATIONS 
 
REF: A. STATE 68510 
     
B. STATE 65511 
     
C. STATE 65133 
     
D. STATE 62052 
     
E. STATE 61363 
 
					

1. (SBU) On June 26, K. B. Manandhar, the Acting Governor of
Nepal's central bank, the Nepal Rastra Bank (NRB), told
Emboffs that the NRB's Financial Information Unit (FIU) would
be the focal point for engaging with post on terrorism
finance issues. The Government of Nepal in April 2008 first
stood up the FIU, created as part of the Anti-Money
Laundering Act in January 2008. Emboff gave Manandhar the
identifying and background information for the U.S. domestic
designation of Venezuela-based Hizballah terrorist financiers
and two UN-listed Islamic Jihad Union leaders (Ref A), the
U.S. domestic designation of the Kuwait-based Revival of
Islamic Heritage Society (Ref B), the 1267 Sanctions
Committee designation of the Philippines-based Rajah Solaiman
Movement and eight of its members (Ref C), the U.S. domestic
designation of Gulf-based al-Qa ida financiers (Ref D), and
the U.S. domestic designation of four Laskhar-e-Tayyiba
operatives (Ref E). Emboff highlighted Refs B and E as
having South Asia regional interest to Nepal. (Note: Emboff
previously had conveyed the terrorist designations to an
Under Secretary in the UN and International Organizations
division at the Foreign Ministry to pass to the relevant
authorities. End note.)

Comment


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2. (SBU) Post believes that the creation of the FIU and the
Acting Governor's enthusiasm to establish a formal terrorism
finance liaison will enhance Nepal's cooperation with the
U.S. on these issues. While few of the designated
individuals and entities likely hold assets or undertake
financial and commercial transactions in Nepal, open
communication with the NRB will increase the likelihood that
any such cases will be discovered and the assets frozen.
POWELL