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Viewing cable 05ANKARA3194, CODEL SHELBY FOCUSES ON TERROR FINANCE
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Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05ANKARA3194 | 2005-06-08 13:26 | 2011-08-24 01:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Ankara |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 ANKARA 003194
SIPDIS
SENSITIVE
TREASURY FOR MMILLS, CPLANTIER, AND RLEBENSON
FINCEN FOR MELANCON
NSC FOR BRYZA AND MCKIBBEN
H FOR SENATORS SHELBY AND CORNYN, AND REPRESENTATIVE CRAMER
E.O. 12958: N/A
TAGS: KTFN EFIN PREL OVIP TU IZ
SUBJECT: CODEL SHELBY FOCUSES ON TERROR FINANCE
REF: ANKARA 2916
This is a joint Embassy Ankara/Congen Istanbul cable.
This is an action request. See para 5.
¶1. (SBU) Summary: In its meetings in Turkey, Codel Shelby
advanced the bilateral terrorism finance agenda,
securing Turkish Ministers' agreement to sending U.S.
terror finance experts to work with their Turkish
counterparts. Minister of Finance Unakitan confirmed
that the new law restructuring the Turkish financial
crime agency was currently under consideration in
parliament. Unakitan also sought U.S. help regarding
an alleged counterfeit cigarette factory in Northern
Iraq. End Summary.
Terrorism Finance:
-----------------
¶2. (SBU) Senators Richard Shelby and John Cornyn, and
Representative Bud Cramer, emphasized cooperation in
the fight against the financing of terrorism in their
meetings in Turkey. The Codel met Minister of Finance Kemal
Unakitan and Minister of Justice Cemil Cicek, and in both
cases pressed for close cooperation to cut off the flow of
funds to terrorists. Both Cicek and Unakitan reciprocated
the Codel's desire for close cooperation and were open to
the Codel's proposal to send U.S. experts to meet with
their Turkish counterparts. Unakitan said his instructions
to agencies were to maximize information-sharing with the
U.S. and other governments. Cicek was aware of the
Department
of Justice-sponsored seminar in December on prosecuting
terror
finance cases and viewed this kind of cooperation favorably.
¶3. (SBU) Minister Unakitan said that Turkey was working to
strengthen its regime (see reftel on weaknesses of current
regime),
including through proposing a new law to restructure the
anti-financial crime agency, MASAK. Unakitan confirmed
that the draft law had been approved in the Council of
Ministers and sent to parliament for consideration.
He said that the MASAK law would make the financing of
terrorism a crime, that it would allow MASAK expanded
powers in investigations, and that there would be stiffer
penalties for financial institutions--not only banks--that
failed to file suspicious transaction reports.
Unakitan said the law required reporting of all
transactions exceeding 8,000 New Turkish Lira ($5,900).
MASAK would also expand its database of financial
transactions. Unakitan was aware of Turkey's upcoming FATF
review.
¶4. (SBU) When Representative Cramer asked how many terror
finance cases were being prosecuted, Cicek said he was not
aware of any. (Comment: We are not aware of any such cases.
Terrorist financiers assets have been frozen in Turkey, and
MFA officials have told us they are worried these
financiers,
legal appeals of the GOT,s administrative actions may
overturn the blocking of their assets. Cicek did not mention
this issue. End Comment.) Representative Cramer also asked
Finance Minister Unakitan about the number of cases MASAK
had successfully pursued and made the point that it was
important not only to change laws, but to ensure effective
enforcement of the laws.
¶5. (SBU) Cicek, characterizing terrorism as a crime against
all humanity, said that Turkey suffered from three types:
left-wing terrorism, religious-based terrorism, and
ethnically-based terrorism, read PKK. Saying the PKK
financed itself from drug and human
trafficking, Cicek lamented European countries'
unhelpfulness in cracking down on PKK financing coming from
"charities" in Western European countries.
Counterfeit Cigarettes from Northern Iraq:
-----------------------------------------
¶6. (SBU) Unakitan asked for U.S. help
to counter what he described as a growing problem in
Turkey: imports of counterfeit products from Northern Iraq,
especially cigarettes. Unakitan asserted there was a
factory in Northern Iraq, owned by a "cousin of
Barzani's," which was producing counterfeits of
international brands, such as those of Philip Morris. The
cigarettes are smuggled into Turkey, causing
substantial lost tax revenues. Unakitan said the GOT had
raised the issue with Prime Minister Jafari and Finance
Minister Allawi during their recent visit to Turkey.
Unakitan praised Jafari and Allawi and said the GOT wanted
to support them to help stabilize Iraq. Unakitan
implied that Jafari and Allawi might not have the ability
to take action against the counterfeit cigarette factory in
Northern Iraq and suggested that the earnings from the
factory could go to terrorist activity, i.e. PKK. Post
requests any information Department and Embassy Baghdad
might have on this issue, and recommends adding this topic
to the agenda for trilateral talks.
Meeting with Foreign Minister:
-----------------------------
¶7. (SBU) In all meetings, Senator Shelby emphasized his
longstanding commitment to strong US-Turkish ties. Foreign
Minister Gul agreed on the importance of the relationship,
and acted as though he wished to downplay any
differences. Representative Cramer urged Turkey to be
cautious in its relations with Syria, noting that the U.S.
and Turkey "had been through too much together." Citing
Syria's proximity to Turkey and the 800-kilometer border,
Gul said, "we need to bring them into the system and they
will learn from us." Gul claimed that Turkish officials
had warned Syria against extending the Lebanese President's
mandate, and reiterated GOT claims that President Assad
needed to be helped to combat "old guys who want to
continue the old ways." Gul asserted that in the meeting
of Iraq neighbors that Turkey hosted, Turkey had not
allowed the Syrians to say certain things. Gul also
thanked the U.S. for its support of Turkey's EU candidacy.
Gul and Senator Shelby agreed on the need to attack the
roots of terrorism by combating poverty and
hopelessness.
Meeting with Central Bank Governor:
---------------------------------
¶8. (SBU) Codel Shelby congratulated Governor Serdengecti on
his success in combating inflation and agreed on the
importance of central bank independence. When the Codel
raised terror finance, Serdengecti said he understood the
importance of the issue, but noted that the Finance Minister
and the bank regulator, which is separate from the Central
Bank,
have the lead on this issue. When asked about privatization
and the problem of state banks competing against private
banks,
Serdengecti was sympathetic, and pointed out that progress on
state bank privatization was in Turkey's IMF program.
Istanbul Meetings:
-----------------
¶9. (SBU) In Istanbul, Codel Shelby attended part of the
Turkish-U.S. Business Council,s 20th Year Conference,
participated in a roundtable discussion with Turkish opinion
leaders, met with the President and board members of the
American Business Forum in Turkey (ABFT), and met with the
President
of the Istanbul Stock Exchange. In the roundtable
discussion,
the Turkish opinion leaders (all from outside the Government)
urged the U.S. to take more action against the PKK in Iraq.
The ABFT outlined problems and prospects in the business
climate in Turkey.
Comment:
-------
¶10. (SBU) Post is grateful for Codel Shelby,s help in
advancing
the terrorism finance agenda which we have pushed at all
levels.
As reftel points out, both the legal and enforcement regimes
are
inadequate and senior officials have not made it a priority
to fix
them. The Codel,s meetings, especially with Cicek and
Unakitan
helped, we hope, focus these senior ministers on the
importance
the U.S. Congress places on this subject. We look forward to
following up with Treasury Undersecretary Levey during his
visit
later this month.
Codel Shelby did not have the opportunity to clear this
message.
Baghdad Minimize considered.
MOORE
MOORE