Identifier
Created
Classification
Origin
09RABAT123
2009-02-09 12:34:00
CONFIDENTIAL//NOFORN
Embassy Rabat
Cable title:
U.S. - NORTH AFRICA TARGETED ECONOMIC SANCTIONS
how-toVZCZCXYZ0011 RR RUEHWEB DE RUEHRB #0123/01 0401234 ZNY CCCCC ZZH R 091234Z FEB 09 (CCY CAPTION AD2AC16B/MSI5547 510) FM AMEMBASSY RABAT TO RUEHC/SECSTATE WASHDC 9650 INFO RUCNMGH/MAGHREB COLLECTIVE RUEATRS/DEPT OF TREASURY WASHDC RUCNDT/USMISSION USUN NEW YORK 0892
C O N F I D E N T I A L RABAT 000123
SIPDIS
NOFORN
DEPARTMENT FOR NEA/MAG
C O R R E C T E D C O P Y (NOFORN CAPTION ADDED)
E.O. 12958: DECL: 02/06/2019
TAGS: ECON ETTC PTER KTFN AG EG LY TS MO
SUBJECT: U.S. - NORTH AFRICA TARGETED ECONOMIC SANCTIONS
WORKSHOP
REF: STATE 127231
Classified By: Economic Counselor Stuart Smith for reasons
1.4 B and D.
C O N F I D E N T I A L RABAT 000123
SIPDIS
NOFORN
DEPARTMENT FOR NEA/MAG
C O R R E C T E D C O P Y (NOFORN CAPTION ADDED)
E.O. 12958: DECL: 02/06/2019
TAGS: ECON ETTC PTER KTFN AG EG LY TS MO
SUBJECT: U.S. - NORTH AFRICA TARGETED ECONOMIC SANCTIONS
WORKSHOP
REF: STATE 127231
Classified By: Economic Counselor Stuart Smith for reasons
1.4 B and D.
1. (U) Summary. As part of the USG's effort to promote
bilateral cooperation on United Nations Security Council
Resolution (UNSCR) 1267 (al-Qaida/Taliban sanctions)
designations, the U.S. Treasury Department co-hosted a
North African workshop on Targeted Economic Sanctions in
Rabat, Morocco on January 12-14, 2009. Organized with the
assistance of the government of Morocco, participants also
came from Egypt and Libya. Participating delegations were
eager to engage with the United States on counterterrorism
policies, but expressed serious concern about shortcomings
in UN 1267 sanctions implementation. They argued that the
1267 list is unwieldy and expensive to implement, lacks
adequate identifying information, and that consequently it
is difficult for states with limited resources to "play by
the rules" and submit all appropriate paperwork. They also
questioned the perceived injustice of implementing
"indefinitely" sanctions on individuals or entities who have
not been convicted of any crime. On the margins of the
workshop, U.S. delegation held extensive and productive
bilateral exchanges with the national delegations. End
Summary.
--------------
The Workshop
--------------
2. (U) Morococo's commitment to and interest in the issue
were reflected in its decision to co-host the workshop.
The Moroccan Ministry of Foreign Affairs' Director of
American Affairs, Fouad Yazourk, in his opening remarks
outlined the GOM's strategy to combat terrorism based on a
three-pronged strategy of pursuing political, educational
and economic reform. He highlighted the serious and
increasing threat posed by transnational terrorism in the
Sahel region, specifically al-Qaeda in the Lands of the
Islamic Maghreb (AQIM). In its presentations, the U.S.
delegation highlighted how the UNSC 1267 regime can help
Morocco and its regional neighbors address such threats, by
adding an important, cross-border tool that can be used in
conjunction with other traditional law enforcement
anti-terrorism measures. Given that many terrorist groups
in the region rely on fundraising in Europe, the delegation
pointed out that their activities can be significantly
circumscribed if they are designated by the UN. U.S.
delegation chair Ori Lev underscored that for the UN
process to be effective, the 1267 Committee needs to be
presented with designation targets supported by both
sufficient evidence and identifying and biographical
information. Advance coordination with other committee
members, he noted, helps facilitate the designation
process. (Note: Workshop presentations which provide
a detailed overview of the UN 1267 process, including how the
U.S. prepares its own designation requests, are available
by contacting Katherine Leahy at
Katherine.Leahy@do.treas.gov End Note.)
-------------- --------------
Description of National Regimes to Counter Terrorist Financing
-------------- --------------
3. (U) At the workshop, participating delegations gave
brief presentations about their governments' efforts to
implement their obligations under the international
targeted economic sanctions regime.
4. (U) The GOM opened its presentation by indicating that
national efforts alone cannot counter the threat posed by
terrorist finance. Underscoring its efforts to fight
terrorism finance, it described the enactment of Morocco's
money laundering law and its ratification of several
conventions at the UN, including the UN Convention on the
Suppression of Terrorism Finance. The GOM assured that its
Central Bank enforces the asset freezing obligations under
UNSCR 1267. The GOM noted its participation and
cooperation in the MENA FATF, and described this forum as a
framework of commitments on issues related to terrorism
finance that need to be honored. Despite these efforts,
the GOM described several circumstances that would prevent
action against terrorism finance: (1) a course of action
that is not in the best interest of the GOM, (2) a course
of action where there is no guarantee of "due process" for
the potential target for designation, and (3) a course of
action agreed upon that does not relate specifically
to terrorism finance. The GOM also opined that UNSCR 1373 is
a comprehensive resolution unlike UNSCR 1267, which only
addresses the threat posed by UBL, AQ, and the Taliban.
5. (U) The GOE provided an overview of the initiatives it
has taken to address the threat of terrorism finance,
noting its role in drafting the UN Conventions on
Counterterrorism and the establishment in 1998 of an
Egyptian Committee on Counterterrorism. The GOE indicated
it has an operational Financial Intelligence Unit (FIU),
the Egyptian Money Laundering Combating Unit (EMLCU),for
the implementation of UNSC sanctions obligations and the
oversight of and analyzing suspicious financial transaction
reports. The GOE's efforts include supporting the UN 1267
regime through submitting designation proposals and the
sharing of information with the UNSC 1267 Committee. The
GOE explained that when it receives names of concern
related to terrorism finance from Egyptian Missions abroad,
this information is subsequently passed to its FIU and the
Ministry of Finance. The GOE emphasized its ongoing
political cooperation in the fight against the financing of
terrorism, its enforcement of all UN resolutions pertaining
to terrorism finance, and its compliance with all the FATF
standards (40 Recommendations and 9 Special Recommendations).
The GOE expressed concerns that some names submitted
by member states to the UNSC 1267 Committee have been
translated erroneously (from Arabic to English) and attributed
these errors to the lack of experience by those countries
submitting designation proposals to the Committee. Egypt
further noted inaccuracies in the transliteration to Arabic
of names on the Consolidated List and complained that
previous attempts to correct the problem had not yielded
results. The problem of mistranslations became a theme
of discussion. The delegation asked for the GOE's help in
identifying incorrectly translated names and inaccurate
Arabic-to-English name transliterations on the Consolidated
List. ( Note: the Regional Treasury Attache at Embassy Cairo
is following up on this request. End Note.)
6. (U)The GOE stated that implementing the UNSCR 1267
travel ban is difficult to enforce primarily due to
advancements in the use of false passport and
identification documents. The GOE expressed concern over
the lengthy process to delist deceased individuals listed
under UNSCR 1267 and opined that no authority has the right
to deny an inheritance to a 1267-listed person's non-listed
beneficiary. The GOE also expressed frustration that the
1267 Monitoring Team had Qoverstepped its mandate" by
taking on the issue of radicalization through its
participation in a working group on the subject set up in
furtherance of the General Assembly's Global
Counterterrorism Implementation Strategy. (Note: Member
states, including the USG, have been reluctant to delist
deceased individuals because their assets could pass on to
beneficiaries who also support terrorism. End Note.)
7. (C) The GOL asserted its full level of commitment to
implement international laws and utilize the required tools
to combat the threat posed by terrorism finance. The GOL
referenced the recent bilateral meeting on matters related to
terrorism finance held in November 2008 between the GOL and
the USG, led by Treasury OFAC Director Adam Szubin, as
an indication of Libya's ongoing cooperation. The GOL
noted that it had provided 12 names to the USG to be listed
under UNSCR 1267 and followed up recently with additional
information on the potential targets for designation. The
GOL described efforts it has taken to combat terrorism
finance including the establishment of an FIU and the
enactment of an act addressing money laundering in 2005.
The GOL described the regional challenges of implementing
international obligations geared to the formal financial
sector when it and the rest of the countries in the region
are predominantly cash-based societies. The GOL argued
that the freezing of assets is not a solution to preventing
the flow of funds to terrorists, as financiers will always
find a way around these deterrents. The GOL praised the
North Africa Targeted Economic Sanctions Workshop
initiative and suggested the establishment of a collective
permanent task force with participation of North African
governments and the USG that will engage in periodic
meetings to discuss the evolving threats posed by terrorism
finance and research the roots of terrorism. ( Note:
The ongoing conflict in Gaza repeatedly intruded on
workshop discussions as one member of the Libyan delegation
used the forum to angrily condemn Israeli actions
there and to argue that the Arab region is on the
verge of a new surge in violence because of them. Terror
finance concerns, he argued, are secondary to that situation.
End Note.)
--------------
Issues Addressed
--------------
8. (U) Throughout the workshop, many participants discussed
at length the issue raised by the GOE of incorrect AKAs and
identifying information, specifically about misspellings
and/or incorrect translation of Arabic naming conventions
that have been included on the 1267 consolidated list.
Despite not finding a solution to this problem, the group
agreed that the issues of AKAs and identifiers could be a
topic of discussion at a future workshop and should also be
addressed at the UN 1267 Committee if possible. Additional
topics of discussion included implementation of
sanctions and other post-designation components, such as
licensing and delisting procedures. It was agreed that
these topics would also be useful to address at future
workshops.
9. (U) Following the numerous Treasury, Justice and State
Department presentations during the workshop, participants
raised several questions pertaining to the differences
between criminal and administrative standards and the
differences between sanctions/asset freezes and criminal
prosecutions and asset forfeitures. Apart from the U.S.,
most countries appear unable to take preventive
counterterrorism actions since they do not have sufficient
administrative processes in place. Participants
were particularly interested in learning more about
the USG legal authorities and processes for
designations, ranging from targeting and pre-designation
to post-designation and due process considerations.
It was apparent to the U.S. delegation that much work
remains to be done in this region to develop targeted
sanctions regimes. Sustained dialogue and further
cooperation is needed to work on pre-and post-designation
issues and due process considerations.
--------------
Bilateral Meetings
--------------
10. (U) On the final day of the workshop, the USG held
bilateral meetings with Morocco, Egypt, and Libya.
11. (C) The GOM used the opportunity to provide more
detailed information about its AML/CFT regime. The day
of the meeting, the GOM had published an official decree
establishing Morocco's FIU. Morocco explained the delay
in establishing its FIU as the need to take appropriate
time to account for all recommendations. In accordance
with the recommendation that it have the authority to
freeze assets without delay, the new FIU is administrative
in nature and has the authority to freeze assets without
judicial decree. However, the GOM further clarified
that the administrative asset freeze is limited to three
months and can be renewed only one time (total duration
of six months). During the course of the asset freeze,
if it is proven that the designated person supports
terrorism, other, criminal provisions of the
counter-terrorism law can be used to seek forfeiture of
the assets. If, however, the evidence is insufficient for
a criminal case, then the assets would become unfrozen.
12. (C) The GOM described a distinction in its law between
freezing, forfeiting, and confiscating assets. The GOM
also requested that "OFAC requests for information" be sent
through a court as it suggested is required by the MLAT
agreement of 1989. Morocco welcomed any technical
assistance the USG can provide, especially with respect to
its FIU, and specifically asked for information about what
type of assistance is available. (Note: Treasury's Office
of Technical Assistance has subsequently provided
information to the GOM in this regard. See para 22 below.
End Note.) The GOM explained that the FIU is still in an
embryonic stage and that it will be some time before it is
fully up and running.
13. (C) Lev raised the issue of the GOMQs outstanding
submission of 32 names to the 1267 Committee, which the
U.S. has a hold on, and asked that the GOM withdraw this
submission.
14. (C) The GOE expressed a positive reaction to the
workshop, commenting that more progress is achieved from
state-to-state contact. Egypt asked for more insights
about how the U.S. issues licenses and specifically
complained about the US Qblanket exemptionQ in the 1267
Committee and wondered if such an arrangement was available
to other countries. Egyptian officials also complained
about deceased persons remaining on the list. Descendants
of the deceased cannot receive welfare payments if the
deceased person remains on the list and Egypt commented
that the U.S. is sometimes the only party who can provide
information verifying the death (i.e. for Afghanistan).
U.S. reps offered to work with Egypt on both delisting and
licensing issues.
15. (C) In regards to the issue of mistranslated names,
Egypt expressed frustration, citing its obligation to
disseminate the list it receives even if it knows the name
is written incorrectly in Arabic. With respect to
implementing names on the list, officials such as border
guards cannot interpret what was meant by the name if it is
mistranslated or transposed. Egypt suggested the Interpol
list is much more thorough than the 1267 Consolidated List.
16. (C) Regarding Egyptian 1267 submissions currently on
hold by the U.S., both Egypt and the USG agreed to look
for additional information regarding the proposed designees,
with the issue to be addressed at the bilateral
counter-terrorism meetings scheduled for early 2009.
In the event the USG is unable to support the names, Egypt
suggested that blocking the names would be preferable to
continuing the holds indefinitely. When pressed on this
point, the Egyptians suggested that the matter be
re-examined if and when such a conclusion is reached,
noting that "rejection is best handled gently."
17. (C) Egypt raised the issue of NGO's operating in Egypt
and stated that some countries (or people in other
countries) give money to support causes that go to Egyptian
NGO's. Egypt has strict rules and is being criticized by
human rights groups for its regulations, while Egyptian NGO's
receive funding from abroad and provide financial support
to Egyptian prisoners. (Comment. It was difficult to
discern whether this was a complaint against human rights
groups' outspokenness against Egypt, or if the point was
that U.S. entities give money to causes that support NGO's
in Egypt that have connections to terrorist activities and
would be relevant to actions under UNSCR 1267.
End Comment.)
18. (C) Overall, the GOL officials expressed enthusiasm
about the GOL's renewed diplomatic ties with the USG,
and they found the regional forum useful to discuss UNSC 1267
issues and expressed interest in pursuing this dialogue
with the USG and North African governments. Although
informed about some details regarding OFAC Director Adam
Szubin's November 2008 trip to Tripoli, the GOL officials
did not provide any concrete updates to the items that
Szubin had raised. In particular, the U.S. delegation was
hoping to find out if the GOL would be willing to withdraw
its 2005 submission of 74 names to the UNSC 1267 Committee
and if it would be able to provide additional evidence on
the remaining six names the USG has on hold at the 1267
Committee, out of its original, separate submissions of 12
names also from 2005. The GOL officials agreed to follow
up on these requests with their counterparts in Tripoli.
19. (C/NOFORN) Ori Lev passed the GOL officials a list
of three USG-vetted, potential Libyan Islamic Fighting Group
targets that had been passed to the GOL in November (Abu
Yahya al-Libi, Abdallah SaQid, and Atiyah Abd al-Rahman)
that either the GOL could submit for designation at the
1267 Committee or that the GOL and USG could jointly submit
to the Committee. The GOL officials agreed to take the
three names back to Tripoli for consideration. (Note:
Treasury and State will follow up with the Libyan Embassy
in Washington, the Libyan Permanent Delegation to the UN in
New York and though Embassy Tripoli to get responses from
the GOL about withdrawing the 74 names and the possibility
of providing additional evidence for the remaining six
names and whether or not it is willing to jointly or solely
submit the three new targets to the UNSC 1267 Committee.
End Note.)
--------------
Items for Follow-Up
--------------
20. (U) State will follow up with the Government of Morocco
to encourage the GOM to withdraw its 2005 submission of 32
names for listing under UNSCR 1267. The GOM had earlier
indicated to Treasury officials that the names were no
longer a priority for the GOM. State will also work with
USUN to try to resolve the problem raised by several
delegations regarding erroneous transliteration into Arabic
of names on the UN 1267 Consolidated List. Our interagency
sub-CSG on terrorism finance issues will also need to
discuss several of the larger strategic issues raised by
delegations regarding the UN 1267 regime, including the
complaint that the regime has gone adrift and needs more
clear direction (and to communicate that purpose to UN
Member States),as well as issues concerning delistings and
whether to remove entries that lack sufficient identifiers.
21. (U) In response to Morocco's request for information on
technical assistance during the bilateral meeting, OTA
responded with a letter on February 3 to be delivered by
Embassy Rabat detailing the assistance available and the
process for making an assistance request.
--------------
Participants
--------------
22. (U) The USG delegation was led by Ori Lev, Senior
Advisor to the Director of the Office of Foreign Assets
Control (OFAC). USG participants and presenters included
the U.S. Treasury Department's Offices of Technical
Assistance (OTA),Foreign Assets Control (OFAC),OFAC
Office of General Counsel, Terrorist Financing and
Financial Crimes (TFFC) and Intelligence and Analysis
(OIA); State DepartmentQs Bureaus of International
Organization Affairs' Office of Peacekeeping, Sanctions and
Counterterrorism (IO/PSC) and Economic and Business Affairs
Office of Terrorism Finance and Economic Sanctions Policy
(EEB/TFS); U.S. Embassy Rabat; Department of Justice's
Office of Overseas Prosecutorial Development, Assistance
and Training; and U.S. AFRICOM.
23. (U) Participants from Morocco, Libya, Egypt, and
Algeria are as follows :
Morocco
--------------
- Mohammed Hamsy, Ministry of Foreign Affairs
- Youssef Bourita, Advisor to Secretary General
- Driss Benfares, Director of Legal Affairs
- Lahbib El Idrissi Lalami, Deputy Director of Treasury and
External Finance
- Abdelaziz Khaoua, Head of Credit Establishment Division
- Brahim Messaoudi, Sr. Exec Offshor Banking Service
- Azelarab Kettani, Deputy Director Legal Affairs
- Abderrafie Tadlaoui, Credit Establishment Department
- Mohamed Dahbi, Ministry of Justice
- Abdessalam Bouhouch, Ministry of Justice
- Jamal El Hadari, Ministry of Interior
- Driss Bruladja, Ministry of Finance
- Youseef Medoudaa Q Ministry of Finance
- Hicham El Haoudi, Anti-Money Laundering Service
- Mohamed Dahbi, Ministry of Justice
Libya
--------------
- Al Bouishi Matug Ellafi, General Director of Taxation
Department
- Miftah Mohamed Bousitta Q National Security Council
- Misbah Ali Hdud Q External Security Organization
Egypt
--------------
- Ashraf Mohsen, Deputy Assistant Minister of Foreign
Affairs for Counter Terrorism
- Hisham Abda, Brigadier General, State Security
- Yasser Mohamed Sayeed Abdul Aziz, Money Laundering
Combating Unit
Algeria
--------------
- Mustapha Ait Abbas, Embassy of Algeria in Rabat
This cable was drafted and cleared by the State
Department's IO/PSC and EEB/TFS and the U.S. Treasury
Department's OFAC, OTA, TFFC and OIA.
*****************************************
Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
*****************************************
Jackson
SIPDIS
NOFORN
DEPARTMENT FOR NEA/MAG
C O R R E C T E D C O P Y (NOFORN CAPTION ADDED)
E.O. 12958: DECL: 02/06/2019
TAGS: ECON ETTC PTER KTFN AG EG LY TS MO
SUBJECT: U.S. - NORTH AFRICA TARGETED ECONOMIC SANCTIONS
WORKSHOP
REF: STATE 127231
Classified By: Economic Counselor Stuart Smith for reasons
1.4 B and D.
1. (U) Summary. As part of the USG's effort to promote
bilateral cooperation on United Nations Security Council
Resolution (UNSCR) 1267 (al-Qaida/Taliban sanctions)
designations, the U.S. Treasury Department co-hosted a
North African workshop on Targeted Economic Sanctions in
Rabat, Morocco on January 12-14, 2009. Organized with the
assistance of the government of Morocco, participants also
came from Egypt and Libya. Participating delegations were
eager to engage with the United States on counterterrorism
policies, but expressed serious concern about shortcomings
in UN 1267 sanctions implementation. They argued that the
1267 list is unwieldy and expensive to implement, lacks
adequate identifying information, and that consequently it
is difficult for states with limited resources to "play by
the rules" and submit all appropriate paperwork. They also
questioned the perceived injustice of implementing
"indefinitely" sanctions on individuals or entities who have
not been convicted of any crime. On the margins of the
workshop, U.S. delegation held extensive and productive
bilateral exchanges with the national delegations. End
Summary.
--------------
The Workshop
--------------
2. (U) Morococo's commitment to and interest in the issue
were reflected in its decision to co-host the workshop.
The Moroccan Ministry of Foreign Affairs' Director of
American Affairs, Fouad Yazourk, in his opening remarks
outlined the GOM's strategy to combat terrorism based on a
three-pronged strategy of pursuing political, educational
and economic reform. He highlighted the serious and
increasing threat posed by transnational terrorism in the
Sahel region, specifically al-Qaeda in the Lands of the
Islamic Maghreb (AQIM). In its presentations, the U.S.
delegation highlighted how the UNSC 1267 regime can help
Morocco and its regional neighbors address such threats, by
adding an important, cross-border tool that can be used in
conjunction with other traditional law enforcement
anti-terrorism measures. Given that many terrorist groups
in the region rely on fundraising in Europe, the delegation
pointed out that their activities can be significantly
circumscribed if they are designated by the UN. U.S.
delegation chair Ori Lev underscored that for the UN
process to be effective, the 1267 Committee needs to be
presented with designation targets supported by both
sufficient evidence and identifying and biographical
information. Advance coordination with other committee
members, he noted, helps facilitate the designation
process. (Note: Workshop presentations which provide
a detailed overview of the UN 1267 process, including how the
U.S. prepares its own designation requests, are available
by contacting Katherine Leahy at
Katherine.Leahy@do.treas.gov End Note.)
-------------- --------------
Description of National Regimes to Counter Terrorist Financing
-------------- --------------
3. (U) At the workshop, participating delegations gave
brief presentations about their governments' efforts to
implement their obligations under the international
targeted economic sanctions regime.
4. (U) The GOM opened its presentation by indicating that
national efforts alone cannot counter the threat posed by
terrorist finance. Underscoring its efforts to fight
terrorism finance, it described the enactment of Morocco's
money laundering law and its ratification of several
conventions at the UN, including the UN Convention on the
Suppression of Terrorism Finance. The GOM assured that its
Central Bank enforces the asset freezing obligations under
UNSCR 1267. The GOM noted its participation and
cooperation in the MENA FATF, and described this forum as a
framework of commitments on issues related to terrorism
finance that need to be honored. Despite these efforts,
the GOM described several circumstances that would prevent
action against terrorism finance: (1) a course of action
that is not in the best interest of the GOM, (2) a course
of action where there is no guarantee of "due process" for
the potential target for designation, and (3) a course of
action agreed upon that does not relate specifically
to terrorism finance. The GOM also opined that UNSCR 1373 is
a comprehensive resolution unlike UNSCR 1267, which only
addresses the threat posed by UBL, AQ, and the Taliban.
5. (U) The GOE provided an overview of the initiatives it
has taken to address the threat of terrorism finance,
noting its role in drafting the UN Conventions on
Counterterrorism and the establishment in 1998 of an
Egyptian Committee on Counterterrorism. The GOE indicated
it has an operational Financial Intelligence Unit (FIU),
the Egyptian Money Laundering Combating Unit (EMLCU),for
the implementation of UNSC sanctions obligations and the
oversight of and analyzing suspicious financial transaction
reports. The GOE's efforts include supporting the UN 1267
regime through submitting designation proposals and the
sharing of information with the UNSC 1267 Committee. The
GOE explained that when it receives names of concern
related to terrorism finance from Egyptian Missions abroad,
this information is subsequently passed to its FIU and the
Ministry of Finance. The GOE emphasized its ongoing
political cooperation in the fight against the financing of
terrorism, its enforcement of all UN resolutions pertaining
to terrorism finance, and its compliance with all the FATF
standards (40 Recommendations and 9 Special Recommendations).
The GOE expressed concerns that some names submitted
by member states to the UNSC 1267 Committee have been
translated erroneously (from Arabic to English) and attributed
these errors to the lack of experience by those countries
submitting designation proposals to the Committee. Egypt
further noted inaccuracies in the transliteration to Arabic
of names on the Consolidated List and complained that
previous attempts to correct the problem had not yielded
results. The problem of mistranslations became a theme
of discussion. The delegation asked for the GOE's help in
identifying incorrectly translated names and inaccurate
Arabic-to-English name transliterations on the Consolidated
List. ( Note: the Regional Treasury Attache at Embassy Cairo
is following up on this request. End Note.)
6. (U)The GOE stated that implementing the UNSCR 1267
travel ban is difficult to enforce primarily due to
advancements in the use of false passport and
identification documents. The GOE expressed concern over
the lengthy process to delist deceased individuals listed
under UNSCR 1267 and opined that no authority has the right
to deny an inheritance to a 1267-listed person's non-listed
beneficiary. The GOE also expressed frustration that the
1267 Monitoring Team had Qoverstepped its mandate" by
taking on the issue of radicalization through its
participation in a working group on the subject set up in
furtherance of the General Assembly's Global
Counterterrorism Implementation Strategy. (Note: Member
states, including the USG, have been reluctant to delist
deceased individuals because their assets could pass on to
beneficiaries who also support terrorism. End Note.)
7. (C) The GOL asserted its full level of commitment to
implement international laws and utilize the required tools
to combat the threat posed by terrorism finance. The GOL
referenced the recent bilateral meeting on matters related to
terrorism finance held in November 2008 between the GOL and
the USG, led by Treasury OFAC Director Adam Szubin, as
an indication of Libya's ongoing cooperation. The GOL
noted that it had provided 12 names to the USG to be listed
under UNSCR 1267 and followed up recently with additional
information on the potential targets for designation. The
GOL described efforts it has taken to combat terrorism
finance including the establishment of an FIU and the
enactment of an act addressing money laundering in 2005.
The GOL described the regional challenges of implementing
international obligations geared to the formal financial
sector when it and the rest of the countries in the region
are predominantly cash-based societies. The GOL argued
that the freezing of assets is not a solution to preventing
the flow of funds to terrorists, as financiers will always
find a way around these deterrents. The GOL praised the
North Africa Targeted Economic Sanctions Workshop
initiative and suggested the establishment of a collective
permanent task force with participation of North African
governments and the USG that will engage in periodic
meetings to discuss the evolving threats posed by terrorism
finance and research the roots of terrorism. ( Note:
The ongoing conflict in Gaza repeatedly intruded on
workshop discussions as one member of the Libyan delegation
used the forum to angrily condemn Israeli actions
there and to argue that the Arab region is on the
verge of a new surge in violence because of them. Terror
finance concerns, he argued, are secondary to that situation.
End Note.)
--------------
Issues Addressed
--------------
8. (U) Throughout the workshop, many participants discussed
at length the issue raised by the GOE of incorrect AKAs and
identifying information, specifically about misspellings
and/or incorrect translation of Arabic naming conventions
that have been included on the 1267 consolidated list.
Despite not finding a solution to this problem, the group
agreed that the issues of AKAs and identifiers could be a
topic of discussion at a future workshop and should also be
addressed at the UN 1267 Committee if possible. Additional
topics of discussion included implementation of
sanctions and other post-designation components, such as
licensing and delisting procedures. It was agreed that
these topics would also be useful to address at future
workshops.
9. (U) Following the numerous Treasury, Justice and State
Department presentations during the workshop, participants
raised several questions pertaining to the differences
between criminal and administrative standards and the
differences between sanctions/asset freezes and criminal
prosecutions and asset forfeitures. Apart from the U.S.,
most countries appear unable to take preventive
counterterrorism actions since they do not have sufficient
administrative processes in place. Participants
were particularly interested in learning more about
the USG legal authorities and processes for
designations, ranging from targeting and pre-designation
to post-designation and due process considerations.
It was apparent to the U.S. delegation that much work
remains to be done in this region to develop targeted
sanctions regimes. Sustained dialogue and further
cooperation is needed to work on pre-and post-designation
issues and due process considerations.
--------------
Bilateral Meetings
--------------
10. (U) On the final day of the workshop, the USG held
bilateral meetings with Morocco, Egypt, and Libya.
11. (C) The GOM used the opportunity to provide more
detailed information about its AML/CFT regime. The day
of the meeting, the GOM had published an official decree
establishing Morocco's FIU. Morocco explained the delay
in establishing its FIU as the need to take appropriate
time to account for all recommendations. In accordance
with the recommendation that it have the authority to
freeze assets without delay, the new FIU is administrative
in nature and has the authority to freeze assets without
judicial decree. However, the GOM further clarified
that the administrative asset freeze is limited to three
months and can be renewed only one time (total duration
of six months). During the course of the asset freeze,
if it is proven that the designated person supports
terrorism, other, criminal provisions of the
counter-terrorism law can be used to seek forfeiture of
the assets. If, however, the evidence is insufficient for
a criminal case, then the assets would become unfrozen.
12. (C) The GOM described a distinction in its law between
freezing, forfeiting, and confiscating assets. The GOM
also requested that "OFAC requests for information" be sent
through a court as it suggested is required by the MLAT
agreement of 1989. Morocco welcomed any technical
assistance the USG can provide, especially with respect to
its FIU, and specifically asked for information about what
type of assistance is available. (Note: Treasury's Office
of Technical Assistance has subsequently provided
information to the GOM in this regard. See para 22 below.
End Note.) The GOM explained that the FIU is still in an
embryonic stage and that it will be some time before it is
fully up and running.
13. (C) Lev raised the issue of the GOMQs outstanding
submission of 32 names to the 1267 Committee, which the
U.S. has a hold on, and asked that the GOM withdraw this
submission.
14. (C) The GOE expressed a positive reaction to the
workshop, commenting that more progress is achieved from
state-to-state contact. Egypt asked for more insights
about how the U.S. issues licenses and specifically
complained about the US Qblanket exemptionQ in the 1267
Committee and wondered if such an arrangement was available
to other countries. Egyptian officials also complained
about deceased persons remaining on the list. Descendants
of the deceased cannot receive welfare payments if the
deceased person remains on the list and Egypt commented
that the U.S. is sometimes the only party who can provide
information verifying the death (i.e. for Afghanistan).
U.S. reps offered to work with Egypt on both delisting and
licensing issues.
15. (C) In regards to the issue of mistranslated names,
Egypt expressed frustration, citing its obligation to
disseminate the list it receives even if it knows the name
is written incorrectly in Arabic. With respect to
implementing names on the list, officials such as border
guards cannot interpret what was meant by the name if it is
mistranslated or transposed. Egypt suggested the Interpol
list is much more thorough than the 1267 Consolidated List.
16. (C) Regarding Egyptian 1267 submissions currently on
hold by the U.S., both Egypt and the USG agreed to look
for additional information regarding the proposed designees,
with the issue to be addressed at the bilateral
counter-terrorism meetings scheduled for early 2009.
In the event the USG is unable to support the names, Egypt
suggested that blocking the names would be preferable to
continuing the holds indefinitely. When pressed on this
point, the Egyptians suggested that the matter be
re-examined if and when such a conclusion is reached,
noting that "rejection is best handled gently."
17. (C) Egypt raised the issue of NGO's operating in Egypt
and stated that some countries (or people in other
countries) give money to support causes that go to Egyptian
NGO's. Egypt has strict rules and is being criticized by
human rights groups for its regulations, while Egyptian NGO's
receive funding from abroad and provide financial support
to Egyptian prisoners. (Comment. It was difficult to
discern whether this was a complaint against human rights
groups' outspokenness against Egypt, or if the point was
that U.S. entities give money to causes that support NGO's
in Egypt that have connections to terrorist activities and
would be relevant to actions under UNSCR 1267.
End Comment.)
18. (C) Overall, the GOL officials expressed enthusiasm
about the GOL's renewed diplomatic ties with the USG,
and they found the regional forum useful to discuss UNSC 1267
issues and expressed interest in pursuing this dialogue
with the USG and North African governments. Although
informed about some details regarding OFAC Director Adam
Szubin's November 2008 trip to Tripoli, the GOL officials
did not provide any concrete updates to the items that
Szubin had raised. In particular, the U.S. delegation was
hoping to find out if the GOL would be willing to withdraw
its 2005 submission of 74 names to the UNSC 1267 Committee
and if it would be able to provide additional evidence on
the remaining six names the USG has on hold at the 1267
Committee, out of its original, separate submissions of 12
names also from 2005. The GOL officials agreed to follow
up on these requests with their counterparts in Tripoli.
19. (C/NOFORN) Ori Lev passed the GOL officials a list
of three USG-vetted, potential Libyan Islamic Fighting Group
targets that had been passed to the GOL in November (Abu
Yahya al-Libi, Abdallah SaQid, and Atiyah Abd al-Rahman)
that either the GOL could submit for designation at the
1267 Committee or that the GOL and USG could jointly submit
to the Committee. The GOL officials agreed to take the
three names back to Tripoli for consideration. (Note:
Treasury and State will follow up with the Libyan Embassy
in Washington, the Libyan Permanent Delegation to the UN in
New York and though Embassy Tripoli to get responses from
the GOL about withdrawing the 74 names and the possibility
of providing additional evidence for the remaining six
names and whether or not it is willing to jointly or solely
submit the three new targets to the UNSC 1267 Committee.
End Note.)
--------------
Items for Follow-Up
--------------
20. (U) State will follow up with the Government of Morocco
to encourage the GOM to withdraw its 2005 submission of 32
names for listing under UNSCR 1267. The GOM had earlier
indicated to Treasury officials that the names were no
longer a priority for the GOM. State will also work with
USUN to try to resolve the problem raised by several
delegations regarding erroneous transliteration into Arabic
of names on the UN 1267 Consolidated List. Our interagency
sub-CSG on terrorism finance issues will also need to
discuss several of the larger strategic issues raised by
delegations regarding the UN 1267 regime, including the
complaint that the regime has gone adrift and needs more
clear direction (and to communicate that purpose to UN
Member States),as well as issues concerning delistings and
whether to remove entries that lack sufficient identifiers.
21. (U) In response to Morocco's request for information on
technical assistance during the bilateral meeting, OTA
responded with a letter on February 3 to be delivered by
Embassy Rabat detailing the assistance available and the
process for making an assistance request.
--------------
Participants
--------------
22. (U) The USG delegation was led by Ori Lev, Senior
Advisor to the Director of the Office of Foreign Assets
Control (OFAC). USG participants and presenters included
the U.S. Treasury Department's Offices of Technical
Assistance (OTA),Foreign Assets Control (OFAC),OFAC
Office of General Counsel, Terrorist Financing and
Financial Crimes (TFFC) and Intelligence and Analysis
(OIA); State DepartmentQs Bureaus of International
Organization Affairs' Office of Peacekeeping, Sanctions and
Counterterrorism (IO/PSC) and Economic and Business Affairs
Office of Terrorism Finance and Economic Sanctions Policy
(EEB/TFS); U.S. Embassy Rabat; Department of Justice's
Office of Overseas Prosecutorial Development, Assistance
and Training; and U.S. AFRICOM.
23. (U) Participants from Morocco, Libya, Egypt, and
Algeria are as follows :
Morocco
--------------
- Mohammed Hamsy, Ministry of Foreign Affairs
- Youssef Bourita, Advisor to Secretary General
- Driss Benfares, Director of Legal Affairs
- Lahbib El Idrissi Lalami, Deputy Director of Treasury and
External Finance
- Abdelaziz Khaoua, Head of Credit Establishment Division
- Brahim Messaoudi, Sr. Exec Offshor Banking Service
- Azelarab Kettani, Deputy Director Legal Affairs
- Abderrafie Tadlaoui, Credit Establishment Department
- Mohamed Dahbi, Ministry of Justice
- Abdessalam Bouhouch, Ministry of Justice
- Jamal El Hadari, Ministry of Interior
- Driss Bruladja, Ministry of Finance
- Youseef Medoudaa Q Ministry of Finance
- Hicham El Haoudi, Anti-Money Laundering Service
- Mohamed Dahbi, Ministry of Justice
Libya
--------------
- Al Bouishi Matug Ellafi, General Director of Taxation
Department
- Miftah Mohamed Bousitta Q National Security Council
- Misbah Ali Hdud Q External Security Organization
Egypt
--------------
- Ashraf Mohsen, Deputy Assistant Minister of Foreign
Affairs for Counter Terrorism
- Hisham Abda, Brigadier General, State Security
- Yasser Mohamed Sayeed Abdul Aziz, Money Laundering
Combating Unit
Algeria
--------------
- Mustapha Ait Abbas, Embassy of Algeria in Rabat
This cable was drafted and cleared by the State
Department's IO/PSC and EEB/TFS and the U.S. Treasury
Department's OFAC, OTA, TFFC and OIA.
*****************************************
Visit Embassy Rabat's Classified Website;
http://www.state.sgov.gov/p/nea/rabat
*****************************************
Jackson