Austria Suspends Investigations Against Palestinian

UNCLAS VIENNA 001766 SIPDIS STATE FOR EB/ESC/TFS, S/CT AND IO/PSC TREASURY FOR FTAT AND OFAC TREASURY ALSO FOR OCC/EILEEN SIEGEL, AND OASIA/ICB/VIMAL ATUKORALA TREASURY PLEASE PASS TO FINCEN JUSTICE FOR DOJ/CRM/ATMLS AND FOR OIA/RICHARD OWENS FBI FOR CID JUSTICE FOR CRM/AFMLS E.O. 12958: N/A TAGS: KTFN EFIN PREL PTER AU SUBJECT: Austria Suspends Investigations Against Palestinian Association REF: VIENNA 1359 Summary -------------- ¶1. In late November, the Vienna public prosecutor suspended criminal investigations against representatives of the Palestinian Association in Austria, an organization on OFAC's SDN (Specially Designated Nationals) list. The public prosecutor was unable to establish proof of terrorism financing or membership in a terrorist organization. In August, a Vienna court ruled to unfreeze about USD 8 million from a bank account linked to the Palestinian Abu Nidal terrorist group (reftel). END SUMMARY. Background -------------- ¶2. In late November, the Vienna public prosecutor suspended criminal investigations against Adel Doghman, President of the Palestinian Association in Austria (PVO),and two other persons, Hani Ibrahim and Hani Abdelhalim, for suspected terrorism financing and membership in a terrorist organization. In 2003, the Palestinian Humanitarian Association - Austria (PHV),took over the PVO's charitable activities, but no case could be established against the PHV either. As a result, the public prosecutor unfroze three bank accounts. According to Gerhard Jarosch, spokesman of the Vienna public prosecutor, the PHV sent donated monies to Palestinian territories, but proof that the monies were "directly or indirectly" sent to terrorist recipients cold not be established. Jarosch explained that similar investigations in almost all other Western European countries had also been stopped for lack of proof. ¶3. The USG asked Austrian authorities several years ago to freeze PVO accounts, since PVO is on OFAC's SDN list and is suspected of financing Hamas. The original criminal investigations were suspended in 2005. The investigations now suspended began in spring 2007 after new evidence was uncovered. The case received publicity in late 2007 when PVO President Adel Doghman, already under criminal investigation, showed up on invitation lists of the Austrian Federal President, the Federal Chancellery, and the City of Vienna for receptions on the occasion of Ramadan. ¶4. The current case follows the August 2008 unfreezing by a Vienna court of USD 8 million in a bank account belonging to the widow of a Palestinian Abu Nidal terrorist (reftel). GIRARD-DICARLO