(S//NF) EU REQUEST FOR HIZBALLAH AND HAMAS

S E C R E T SECTION 01 OF 03 BRUSSELS 001230 NOFORN SIPDIS STATE FOR S/CT, EEB/TFS, EUR/ERA, NEA TREASURY FOR TFFC, OFAC, OIA NIC FOR RICH KAUZLERICH E.O. 12958: DECL: 09/10/2019 TAGS: ETTC KTFN PTER EFIN KCRM KJUS KHLS UNSC PINR PHUM, KPAO, FR, UK, EUN SUBJECT: (S//NF) EU REQUEST FOR HIZBALLAH AND HAMAS FINANCING ANALYSIS REF: A. PRAGUE 348 ¶B. BRUSSELS 1021 Classified By: Peter Chase, Economic Minister Counselor for reasons 1.4 (B) and (D) ¶1. Action Request: Please see paragraph 10. -------------- Summary/Comment -------------- ¶2. (S//NF) The EU's Joint Situation Center ("SitCen") has submitted to USEU a request for U.S. information at any level of classification on Hamas and Hizballah financing for a research project SitCen is undertaking. The project was proposed and will be conducted by an analyst who was inspired to research the issue after attending the U.S.-EU Terrorism Finance Workshop in May 2009. Based on the analyst's proposal, the Swedish EU Presidency formally requested the product from SitCen, which has in turn asked all 27 EU Member States to provide any relevant information. With SitCen Director Shapcott's consent, the analyst forwarded a request to USEU that the USG also consider, using established U.S.-EU classified information-sharing channels, contributing information to the project. A draft outline for the strictly analytical report is included below. This EU Presidency tasking presents the USG with an opportunity to provide EU terrorism experts with information on Hamas and Hizballah that could be instrumental to shaping future EU policy towards those groups. End Summary/Comment. -------------- Interest Piqued on Hizballah and Hamas -------------- ¶3. (S//NF) Philippe de la Bletiere (PROTECT),an analyst from the EU's Joint Situation Center ("SitCen"),contacted Econoff to request USG input for a forthcoming EU intellfocus on financial flowQllah. Although his analysct areas for itsp. His personal interest iS.-EU Terrorist F Prague (REFTEL PRAGUE 348a Bletiere provided Econofd riisations/companies: o Major organisations and locations; BRUSSELS 00001230 002 OF 003 SUBJECT: (S//NF) EU REQUEST FOR HIZBALLAH AND HAMAS FINANCING ANALYSIS o Modus operandi; o Resilience when disrupted (if possible use case studies); Criminal and/or linked legal activities o Main activities; o Differences regarding regional location (South America - "the triple frontier," Africa, Europe, United States); o Links with organized crime networks o How is the money laundered? 2) State of play of Hizballah and Hamas finance efforts (i.e. shaken by 9/11?). 3) Countering Hamas and Hizballah finance efforts (i.e. state of play, vulnerabilities). 4) Some analysts consider that Hamas is more dependent on charities and Hezbollah on state sponsoring. How do you assess this statement? 5) The role of social welfare and legal/practical difficulties that states are facing to disrupt organisations that fund Hamas and Hezbollah. (i.e. in some cases funds provided to social welfare related to these groups is just a part of a wide range of funding activity by the disrupted organisation. In cases like this there is a mechanism implemented to allow continuity of the "good funding?") 6) Are there any financial links with AQ. (i.e. support, donors, International Joint funding organisations) 7) Current assessment and future trends. ¶5. (S//NF) De la Bletiere has already sent the foregoing topics and questions to EU Member States ("EUMS") but anticipates significant gaps in their feedback. He told us that U.S. information of any source or classification level is welcome, in line with terms of the U.S.-EU Information Sharing Agreement. He intends to begin work on the project in early October, to present his conclusions to the EU Presidency by December, and to give additional briefings to groups responsible for EU counterterrorism policy, such as COTER, TWC, and the 931 Working Group. Any finished products will remain restricted, at the confidential or secret level, depending on U.S. input. ¶6. (SBU) The USG may release information to individual SitCen analysts (effectively individual EUMS, since SitCen analysts are on loan from EUMS),though SitCen would ideally prefer to integrate USG contributions directly into documents for the consideration of all Member States. De la Bletiere, himself a dual French-Portuguese national, has requested clear and specific instructions for the withholding/sharing of any USG-provided information. -------------- SitCen Background -------------- ¶7. (S//NF) SitCen's primary clients are the EU's Political and Security Council (PSC) Ambassadors, who prepare decisions for foreign ministers on external political and security issues. For the EU, SitCen's value added (REFTEL BRUSSELS 1021) is "getting the non-UN Security Council Member States caught up" so they "can't say they don't understand." ¶8. (C//NF) In its analyses, SitCen draws upon the work of EUMS external services, police, and law enforcement agencies. Some SitCen products are released to international partners, but none are yet available to the United States. This is because, under the terms of the U.S.-EU Information Sharing Agreement, document exchanges require formal originator release procedures, and therefore consent from every state BRUSSELS 00001230 003 OF 003 SUBJECT: (S//NF) EU REQUEST FOR HIZBALLAH AND HAMAS FINANCING ANALYSIS that has contributed to a given product. These release procedures would still apply in cases where information has already been released through bilateral channels. Informal, analyst-to-analyst discussions are easy to arrange by comparison, since these particular informational exchanges do not require release procedures. -------------- Comment: A Welcome Opportunity -------------- ¶9. (C//NF) Sitcen has generally shied away from analysis related to sanctions, where it finds itself politically exposed. This EU Presidency tasking for objective views on financial flows to Hizballah and Hamas thus represents a significant opportunity to provide more detailed information so that EU analysis is more thorough and decisions, based on sound information, more in line with our own. -------------- Action Request -------------- ¶10. (SBU) Treasury and State are requested to use information sharing mechanisms to respond positively to the request for information. Please send information to or contact John Florio or Lorelei Snyder. MURRAY .