US embassy cable - 04TELAVIV1413

S E C R E T SECTION 01 OF 02 TEL AVIV 001413 
 
SIPDIS 
 
NOFORN 
 
STATE FOR EB/ESC/ESP, S/CT, INL/C, NEA/IPA AND EB ASSISTANT 
SECRETARY ANTHONY WAYNE 
 
SIPDIS 
TREASURY FOR GENERAL COUNSEL DAVID AUFHAUSER 
OPERATION GREEN QUEST FOR MARCY FORMAN 
JUSTICE FOR DAVID LAUFMAN, OFFICE OF THE 
DEPUTY ATTORNEY GENERAL, CRIMINAL DIVISION FOR B. SHWARTZ 
FBI FOR TERRORISM FINANCIAL REVIEW GROUP FOR DENNIS LORMEL 
NSC FOR J. MYERS 
CIA/CTC 
 
E.O. 12958: DECL: 03/05/2014 
TAGS: EFIN, PTER, SNAR, KWBG, IS, COUNTERTERRORISM, ISRAELI-PALESTINIAN AFFAIRS, U.S.-ISRAEL RELATIONS 
SUBJECT: MEETING OF POST TERRORISM FINANCING WORKING GROUP 
 
REF: A. TEL AVIV 1392 
     B. TEL AVIV 2737 
     C. JERUSALEM 0662 
 
Classified By: Deputy Chief of Mission Richard LeBaron reasons 1.4 (b) 
 and (d). 
 
This message has been cleared by ConGen Jerusalem. 
 
1.  (S//NF) On March 5, the DCM chaired a meeting of mission 
officers involved in terrorist financing issues.  Post 
Economic, Political, FBI, ORCA, and DATT sections 
participated in the meeting, updating most recent efforts in 
working with the GOI on terrorist financing issues. 
 
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Raid on Banks in Ramallah 
------------------------- 
 
2.  (S//NF) Post sections gave an update on recent 
information gathered from GOI interlocutors on the much 
publicized GOI raid on Palestinian banks in Ramallah last 
week.  Econ and Legatt reported that they were briefed by the 
Shin Bet on March 2 regarding the information and money 
confiscated during the raid and details on the situation that 
led up to the raid (reftel A).  Poloff reported on the 
meeting between the Ambassador and the NSC's 
Counter-terrorism Chief on March 1 (reftel B) and ORCA gave 
on update on information passed to them by their contacts. 
DAO reported that the IDF would host a briefing on the raid 
for diplomatic defense attaches next week.  Econ reported on 
the efforts of the Embassy and ConGen Jerusalem to follow-up 
on the Palestinian Monetary Authorities (PMA) request to 
establish a cooperative dialogue with Israel's Financial 
Intelligence Unit (reftel C).  Embassy econoff spoke with the 
head of the Israeli FIU who has expressed a willingness to 
provide technical support to the PMA.  ConGen Jerusalem has 
passed the Israeli FIU's contact information to the PMA. 
 
3.  (C) DCM asked sections to think of ways the USG can work 
with the GOI to prevent a situation where the military is 
called in to conduct asset seizures.  The group agreed that 
establishing better communication between the PA and the GOI 
on terrorist financing should be a priority and that these 
contacts need to be made at the operational and policy level. 
 After last week's event, the GOI officials told the 
Ambassador that they want to establish more effective 
communication and in doing so, hope to avoid actions like 
last week.  DCM asked all sections to think of ways to 
improve this dialogue. 
 
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Ongoing Cases 
------------- 
 
4.  (S) Legatt reported that it is supporting numerous 
missions from the FBI and the Dept. of Justice on ongoing 
terrorist financing cases.  Legatt described cooperation with 
the GOI on these cases as excellent and ongoing.  All 
sections reported hearing from Israeli contacts that funding 
directed to Palestinian groups from Hezbollah has increased. 
DAO reported that IDF and Ministry of Defense contacts are 
drawing parallels between Hezbollah's increased activity in 
Israel and in Iraq.  DCM asked sections to look into Israeli 
reports of Hezbollah using Western Union to move terrorist 
funds to Palestinian terrorist groups.  FBI indicated that 
the Israeli information on these transfers comes from 
communication intercepts.  DCM advised Legatt should be in 
lead regarding Western Union issues. 
 
5.  (C) Legatt reported that an FBI team from the U.S. met on 
March 4 with the head of the PMA, Amin Haddad, to evaluate 
the ability of his organization to assist in ongoing and 
future investigations. 
 
----------------------- 
Training and Assistance 
----------------------- 
 
6.  (C) On March 3, the FBI hosted a team of investigators, 
prosecutors, and regulators from the USG who presented 
several seminars to Israeli law enforcement, regulators, the 
Israeli FIU, intelligence, military, and other Israeli 
security organizations.  The team consisted of members of the 
Dept. of Justice, the Dept. of Treasury, the FBI, and the 
Federal Reserve.  The team briefed the Israeli participants 
on the use, effectiveness, and challenges of the Patriot Act 
in dealing with terrorist financing.  The sessions were well 
attended by the Israeli community and Israeli interlocutors 
said that the sessions were useful. 
 
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