US embassy cable - 03ANKARA5365

S E C R E T SECTION 01 OF 02 ANKARA 005365 
 
SIPDIS 
 
 
DEPARTMENT FOR EB/ESC/(GGLASS), S/CT (SFOX), EUR/SE; 
O/PHO/APEREZ; 
NSC FOR GPETERS; 
TREASURY FOR GENERAL COUNSEL (DAUFHAUSER), OFAC (RNEWCOMB), 
TREASURY (JZARATE) AND THE TREASURY TASK FORCE ON TERRORIST 
FINANCING 
 
 
E.O. 12958: DECL: 08/21/2013 
TAGS: EFIN, ETTC, PTER, TU 
SUBJECT: TERRORIST FINANCING: ANKARA: MEETING WITH MFA RE 
TERRORIST FINANCING EFFORTS 
 
REF: A. STATE 240844 
     B. STATE 238111 
     C. STATE 226346 
     D. ANKARA 04948 
 
 
1. (U) Classified by Economic Counselor Scot Marciel for 
Reasons 1.5 (b), (d). 
 
 
2. (C) Summary:  Econoffs met with MFA Deputy Director 
General for Research and Intelligence  Hakan Okcal on August 
20 to deliver Ref A and B demarches, and obtain an update on 
status of previous designations. Okcal took the opportunity 
to describe how the GOT deals with terrorism finance 
demarches.  End Summary. 
------------------------------ 
Mujahedin-El Khalq 
------------------------------ 
 
 
3. (C) Econoffs delivered Ref A Talking Points and Background 
Paper.  Okcal noted that since the USG did not intend to 
request action by UN 1267 Sanctions Committee, the GOT would 
not take formal action (see Ref D). However, Okcal stated 
that he does not believe the MEK has any assets in Turkey, 
and also noted that GOT would for its own reasons quickly 
seize any MEK assets it could find.  Okcal explained that 
whenever Turkey complains to Iran about harboring the PKK, 
Iran responds by accusing Turkey of harboring MEK. Because of 
this &very delicate8 issue, Okcal said, GOT will not permit 
any MEK activities within the country. 
------------------------------ 
Al Zindani and Waldenberg 
------------------------------ 
 
 
4. (S)  Econoffs delivered Ref B Talking Points and 
Background Paper, emphasizing the close hold.  Consistent 
with his prior position (see Ref D), Okcal advised that GOT 
would issue a decree regarding Al-Zindani & Waldenberg 
following UN designation. 
 
 
------------------------------ 
Basayev 
------------------------------ 
 
 
5. (C) Okcal stated that GOT has not yet issued a decree 
regarding Basayev, but will do so now that an additional 
designation request has been received (Ref B).  Okcal 
explained that the GOT cannot issue a decree each time a 
designation request has been received. Okcal stressed, 
however, that as soon as a request is received, he formally 
notifies all GOT agencies, which then take action to 
ascertain whether the designated parties hold any assets in 
Turkey. Enforcement bodies such as the Ministry of Finance,s 
Financial Inspections Board are then able to block assets 
based on their existing authorities, without necessarily 
basing their actions on the slower and more cumbersome 
terrorist asset-freezing procedure. Thus, Okcal claimed that 
any delay in the issuance of a decree should not have any 
adverse practical effect.  Okcal advised that he has not yet 
received back from GOT agencies any response to his initial 
notification on Basayev, and that responses normally take 
about one month. 
 
 
------------- 
Nasreddin 
------------- 
 
 
6. (C)  A local press account speculated that NASCO Nasreddin 
, part of the Nasreddin group previously designated by the 
U.S. and the U.N., could benefit from a tax amnesty on 
exporters under consideration by the GOT. In response to 
Econoffs, inquiry, Okcal insisted that (a) any tax amnesty 
would not affect asset freezes; (b) he does not think that 
NASCO will receive an amnesty; and (c) in any event he has 
written to GOT authorities, advising them to inform him 
before taking any action with respect to NASCO (to which he 
has not yet received any response). 
------------------------------ 
Okcal Guidance on GOT Procedures Re Terrorist Asset Freezes 
------------------------------ 
 
 
7. (C) Okcal reiterated that current Turkish legislation is 
not adequate to the task of freezing assets. He said that the 
Ministry of Justice and Ministry of Finance were considering 
new counter-terrorist legislation, which would contain 
provisions that address this problem. As an &interim 
solution,8 GOT issues administrative decrees, which are 
based on the authority of Chapter 7 of the United Nations 
Charter (which has binding effect in Turkey). He gave 
Econoffs copies of the five decrees that have been issued to 
date (which in the aggregate designate over 100 individuals 
and organizations). Okcal stated that although &traces8 of 
a few groups have been discovered, except for Yasin Al-Kaidi 
no current activities or assets have been located. 
 
 
8. (S) Okcal emphasized that his role was purely 
&conducive8 (i.e., he transmits requests as received). He 
explained that two organizations within the Ministry of 
Finance have operational responsibility for seizures: the 
Financial Crimes Investigation Board (MASAK), and the 
Financial Inspection Board.  MASAK is supposed to be the 
coordinating authority, but according to Okcal (strictly 
protect) is &somewhat weak.8  Okcal believes that it would 
be a &tremendous help8 if the U.S. &kept pressure8 on the 
Ministry of Finance and that Post should vigorously engage 
MASAK. (For example, Okcal stated that MASAK and Turkish 
judges would benefit from an ongoing training program.) 
EDELMAN