MFA REPORTS REVISED TERROR FINANCE LAW SOON TO

C O N F I D E N T I A L TEL AVIV 001411

SIPDIS

E.O. 12958: DECL: 06/26/2018
TAGS: PREL EFIN KTFN IS
SUBJECT: MFA REPORTS REVISED TERROR FINANCE LAW SOON TO
COME INTO EFFECT

REF: A. (A) STATE 65133

B. (B) 07 TEL AVIV 3585

Classified By: DCM Luis Moreno for Reasons 1.4(b) and (d)


1. (U) SUMMARY: In a meeting with the MFA,s Deputy
Director for Counterterrorism on June 23, econoff was
reassured that the new amendment to Israel,s dated
Prohibition on Terrorist Financing law would come into effect
within a few weeks. Previously, the GOI has only had the
authority to designate terrorist entities operating in
Israel,s immediate region. The new amendment allows Israel
to designate foreign ones as well. The new legislation will
finally bring Israel into compliance with UN Resolution 1267.
The amendment was passed by the Knesset in December but it
has remained inactive pending the creation of updated
bureaucratic procedures. While Israel remains unable to
designate the entities cited in the latest action under UN
resolution 1267, econoff passed the MFA the latest additions
to the list per reftel &A8. Econoff also discussed
Israel,s recent designation of 36 new organizations, the
first such addition to its list since 1948. These
organizations are all associated with the "Coalition of
Good". END SUMMARY

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NEW DESIGNATION PROCEDURE TO TAKE EFFECT SOON
--------------


2. (U) Econoff transmitted the latest list of UN designated
terrorist entities from the UN 1267 Sanctions Committee per
reftel "A" to Ariel Shafransky, Deputy Director for
Counterterrosim at the MFA. Shafransky was pleased to
receive the list but informed econoff that the GOI still
remained powerless to enforce the designations under its own
law. Shafransky explained that while the Knesset had
approved an amendment to the law last December giving the
government authority to add foreign entities to its list of
designations, procedures are still being developed and have
not yet been put into effect (see reftel "B"). Shafransky
mentioned that developing the procedures has been an arduous
task that requires approval and input from several agencies
and the Israeli intelligence community. In a follow up
message to Econoff on June 26, Shafransky said that "no major
things, only a bit of wording" remained in finalizing the
process. He said the procedure is about to be introduced
within the next few weeks. Upon taking effect, the GOI will
likely designate the entire consolidated list of the UN 1267
committee and the US Treasury,s OFAC list in one omnibus
announcement.


3. (C, REL USA,ISR) Econoff is working through Treasury/OFAC
to directly provide the Israeli National Security Council
with a list certified as official by an authorized agent at
OFAC. In order to meet its burden of law to adopt a
designation from a "friendly country," Israel must receive
official correspondence from the designating authority. OFAC
is currently compiling a complete listing of designations
with an official cover letter that is intended to meet this
standard. Econoff expects to provide the GOI with this
official OFAC list on or around the time that Israel,s
procedure is put into effect.

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ISRAEL DESIGNATES 36 NEW ENTITIES ASSOCIATED WITH "COALITION
OF GOOD"
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4. (U) During the meeting, Shafransky also passed econoff a
copy of the Israeli Defense Ministry,s public announcement
dated May 26, 2008 designating 36 new entities as unlawful
terrorist organizations within Israel. The list comprises a
group of organizations associated with the "Coalition of
Good". They have been operating from the United States,
Europe, and elsewhere under the guise of Zakat, an Islamic
tithing system. Shafransky stressed the amount of time and
effort that the Israeli intelligence community devoted to
this list and emphasized that this is the first addition to
Israel,s roster since 1948. COMMENT: This step is a
notable example of the GOI,s focus on combating illicit
finance in its efforts to combat terrorism in general. END
COMMENT.


5. (U) In its May 26 public announcement, the GOI designated
the following organizations found to be operating in
Israel,s immediate region:

1. The Saudi Committee for the Relief of Palestinian
People;

2. International Islamic Relief Organization;


3. Patients Helping Fund ) The Administration
Al-Qadisiyah The Medical Committee;

4. Makkah Charity Institution;

5. Mercy International;

6. Zakat House;

7. The Charitable Palestines Committee;

8. Mohammed Bin Rashid Charity and Humanitarian
Establishment;

9. Fujairah Charity Association;

10. The Sharga House of Charity;

11. UAE Red Crescent Society;

12. Al Islamic Society ) The Charity Act;

13. The Islamic Society;

14. Al Irshad and Ak Islah Society ) Guidance and
Reform Society;

15. Sheikh Eid Bin Muhammad Al-Thani Charity
Association;

16. The Charitable Qatar Society;

17. Palestine Qatar Committee for Relief in Palestine;

18. The Islamic Charitable Society to Help Al-Aqsa;

19. The Ansar Charitable Society in Sudan;

20. The Islamic Dawah Association Sudan ) Munazzmat
Al-Dawa Al Islamic;

21. The Movement for Unity and Reform;

22. The Union of Good Lebanon ) Dar Al Fatwa
(including US Charitable Organization);

23. The International Islamic Council for Dawah and
Relief;

24. The Humanitarian Relief Committee Doctors
Syndicate;

25. The Reform Society ) Yemen;

26. Jamiyyat Al-A,Maal Al-Khayriyyah Human Appeal
International;

27. Humanitarian Relief Foundation;

28. Muslim Hands;

29. Muslim Aid;

30. Educational Aid for Palestinians;

31. Sanabil Al Aqsa Charitable Foundation;

32. Innocents;

33. Association De Decours Palestinien ) ASP Relief
for Palestine Society;

34. Palestine Association;

35. Al Awsa Foundation of South Africa / Al Aqsa
International Foundation;

36. Insan Haklary Ve Hurriyetleri Vakfi International
Humanitarian Relief Organisation or Internationale
Humanitere Hilfsorganisation.

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