US embassy cable - 03THEHAGUE2458

S E C R E T SECTION 01 OF 02 THE HAGUE 002458 
 
SIPDIS 
 
NOFORN 
 
STATE FOR EB/ESC/ESP, S/CT, EUR/ERA, INR/EC, EUR/UBI, INL, 
EUR/PGI 
TREASURY FOR ZARATE 
JUSTICE FOR OIA/FRIEDMAN 
FBI FOR LORMEL 
 
E.O. 12958: DECL: 09/22/2013 
TAGS: ETTC, PTER, NL, EUN 
SUBJECT: TERRORIST ASSETS: NEW DUTCH INITIATIVES 
 
 
Classified By: DCM Daniel Russel.  Reason 1.5(b) and (d) 
 
1.  (S/NF) Summary: The Dutch plan to take additional 
measures to clamp down on terrorist front organizations, and 
supporters, although their full effect will likely only be 
felt over time.  Dutch officials will enact new measures to 
safeguard the Dutch financial system from terrorist funds. 
We also expect the Dutch to be active in the European Union 
to improve and intensify EU measures against terrorist 
assets.  (Septels will report Dutch thinking and initiatives 
in other areas of counterterrorism). End summary. 
 
More Proactive in Designations 
------------------------------ 
2.  (S/NF) Dutch authorities have told us that they are 
gearing up several new initiatives against terrorist 
financing.  The most significant is gearing up to take action 
toward terrorist fundraisers, supporters,and front 
organizations in the Netherlands, including through 
designation processes.  A package of measures introduced in 
parliament by Justice Minister Donner will provide a clearer, 
more solid legal basis for taking action against these types 
of entities and to place additional restrictions on their 
activities once they are designated.  In anticipation of a 
step up in activities against terrorist front organizations 
and fundraisers, we understand the Dutch security service has 
stepped up its surveillance of groups suspected of operating 
in the Netherlands.  Some of these proposed measures will be 
hotly debated in parliament as some measures (e.g., making 
clear that organizations designated by the EU cannot use or 
be given funds to rent convention space for rallies) to clamp 
down on terrorist supporters could also be construed as 
clamping down on free speech. 
 
Tighter Financial Controls 
-------------------------- 
 
3.  (U) The Netherlands is also taking action to safeguard 
its financial sector against terrorist funds.  New 
legislation expected to come into effect January 1, 2004 will 
bring companies engaged in providing international companies 
with domicile, management, tax, administrative, and legal 
services ("trust offices") under the supervision of the Dutch 
Central Bank (DNB).  Before issuing a license, DNB will 
verify the identity of the ultimate beneficiaries of any 
entities under management and vett trust companies' top 
management.  We understand that DNB plans to take additional 
measures to ensure banks and other financial institutions 
effectively implement terrorist "freeze" orders.  The GONL 
has also announced that it will introduce measures to boost 
the transparency and effective supervision of non-profit 
organizations and the flow of funds to non-profit 
organizations (including Islamic schools) received from 
abroad. 
 
Multilateralizing Through the EU 
-------------------------------- 
 
4.  (SBU) Especially with its EU Presidency scheduled for the 
end of next year, the Netherlands will attempt to 
multilateralize many of these measures against terrorist 
finance to the rest of the EU.  Finance Ministry officials 
have told us that they will strongly push for a new EU 
anti-money laundering directive that incorporates the latest 
FATF guidelines.  Several Dutch officials have told us that 
they hope to use their Presidency to streamline the EU 
clearinghouse process.  The Dutch plan during their 
presidency to review and follow up on the Tampere Conclusions 
(from the October 15-16,1999 EU Council meeting) which may 
provide additional scope for police and judicial cooperation 
against terrorist financing. 
 
Comment 
------- 
 
5.  (C/NF) The pace of Dutch action against terrorist 
fundraisers, supporters, and front organizations is not 
likely to dramatically escalate but instead rise slowly but 
steadily.  The new legislation introduced by the Justice 
Minister will take several months before it is enacted, and 
many Dutch law enforcement and intelligence officials will 
prefer to keep tight survelliance on terrorist supporters 
rather than pursue designations that could force these 
organizations underground.  Nevertheless, most officials we 
have talked to believe that Dutch actions against Al Aqsa 
Foundation, BIN, and NPA leader Sison represent a 
psychological turning point in favor of designation.  We 
apprised Dutch officials that the U.S. would need substantial 
information packages submitted in order to follow up any 
Dutch/EU designations with those of our own.  To ensure a 
level playing field for Dutch companies, the Dutch will be 
active, we believe, in convincing the rest of the EU to 
follow their lead in AML, designation, and law enforcement 
financial issues.  We should look forward to and support 
their leadership in these areas. 
SOBEL