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 -------------- ¶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