US embassy cable - 04BOGOTA4060

C O N F I D E N T I A L SECTION 01 OF 02 BOGOTA 004060 
 
SIPDIS 
 
E.O. 12958: DECL: 04/15/2014 
TAGS: EFIN, ETTC, PREL, PTER, CO, EUN 
SUBJECT: TERRORIST FINANCE ISSUES IN COLOMBIA 
 
REF: 04 STATE 12958 
 
1.   (C) The complex relationship between drug traffickers, 
money launderers and terrorists led the Government of 
Colombia (GOC) to take a broad, multifaceted and 
multi-institutional approach to combating illicit finance. 
Colombia has worked extensively with the USG to find, 
investigate and freeze assets of terrorists; however, post 
has identified specific areas for improvement. 
 
THE CURRENT SITUATION - GOC 
 
2.   (C) Colombia has several organizations designated as 
"Foreign Terrorist Organizations" under US law. However, due 
to Colombian laws, banks in Colombia cannot freeze accounts 
on the Office of Foreign Assets Control (OFAC) list of 
specially designated nationals and blocked persons.  Banks 
only have the authority to close accounts and return funds or 
to refuse business altogether. The Prosecutor General's 
Office (Fiscala) is the only entity with the authority to 
freeze accounts through judicial process.  The Fiscala has 
been helpful in working with the USG to investigate 
suspicious accounts; however, the results have been limited. 
Since 1995, only 177 people have been convicted of crimes 
involving illicit finances. In contrast to arrests, The GOC 
seized at least USD 140 million worth of narco traffickers 
and terrorist assets (money and goods) last year. 
 
THE CURRENT SITUATION ) COLOMBIAN BANKS 
 
3.   (C) Colombian banks, particularly those in Bogota, are 
helpful in closing accounts because they enjoy having a legal 
seal of approval.  Compliance is more difficult in smaller, 
rural areas or in regional banks, which may have paramilitary 
and guerrilla sympathizers within them. In those 
institutions, sympathizers or personnel under pressure from 
terrorist organizations quietly transfer funds to inactive 
accounts.  Bank personnel in these areas also encounter more 
direct threats from terrorist organizations.  This makes 
simply turning over required information to authorities a 
risk to their lives.   Efforts to retrieve information and 
close suspected accounts will be more successful as greater 
government rule is established in all areas of the country. 
 
AREAS OF CONCERN 
 
4.   (SBU) Colombia's steps to fight terrorist financing have 
been commendable, but more can be done.  USG representatives 
in Colombia have identified specific areas of concern: 
 
A.   (C) INTERAGENCY COMMUNICATION -- Post has a bi-weekly 
terrorism finance meeting that brings together the different 
agencies dealing with illicit financing. We are establishing 
a mechanism that will allow for information sharing and the 
storage of information in a further central embassy location. 
 To create institutional memory and a broad base of Colombian 
contacts, the Defense Attache's Office (DAO) has created a 
permanent, Intelligence Officer position to act as a point of 
contact between USG and Colombian agencies.  This officer 
will act not only as a facilitator between the Embassy and 
the GOC, but also between the Embassy and other governments 
working on illicit finances. 
 
B.    (C) INTERGOVERNMENTAL COMMUNICATION -- The GOC has been 
helpful in working with USG agencies.  We are working to make 
a more efficient framework for intergovernmental 
investigations and analysis.  Differences between entities 
within the GOC that focus on intelligence (the military) and 
those that depend upon confiscated evidence for prosecution 
(law enforcement) limit communication. Greater communication 
between the USG and the GOC would push GOC entities to 
communicate more. In addition to greater communication, a 
greater physical presence might also be possible. The 
director of UIAF (the GOC financial crimes unit) said to 
emboffs that he would be willing to have a USG official 
detailed to his office to help with investigations.  The GOC 
is willing to provide more information if USG officials are 
willing to take a larger role.  A step in this direction 
could also lead to greater cooperation with GOC's 
Inter-institutional Committee to Combat Terrorist Finances, a 
group bringing together the national prosecutor's office, 
military intelligence and the judicial police.  Closer work 
with both UIAF and the Inter-institutional Committee would 
benefit Colombian and USG work to combat illicit finance.  A 
consistent, daily dialogue with the GOC would improve 
information sharing. 
 
C.  (C) BROADENING THE SCOPE  -- Terrorist financing is part 
of the bigger illicit financing issue in Colombia. Fighting 
terrorism in Colombia goes hand in hand with fighting drugs, 
corruption, extortion, fraud and money laundering.  Every 
aspect of the Colombian economy and society is affected by 
illicit financing.  Investigating and seizing assets of 
narco-traffickers is a crucial tool for fighting narco- 
terrorism.  No definitive line can be drawn to separate 
terrorist issues from drug issues, including in the financing 
realm. The Embassy is continuing to work on developing more 
operational intelligence.  Our regular Embassy Anti-Terrorism 
Finance Committee Meetings have improved coordination among 
agencies at post and greater information sharing. 
 
5.  (SBU) The amount of data that the GOC must analyze to 
make a case against suspected terrorists and the difficulty 
it has in collecting data in rural areas makes it 
exceptionally difficult to find, investigate, and prosecute 
terrorists.  Terrorist organizations in Colombia use 
sophisticated techniques to hide money and to intimidate 
those who refuse to cooperate with them, further complicating 
the work of finding illicit funds.  Compared to its 
neighbors, Colombia's system to investigate financial crimes 
is advanced.  But still is inadequate to the task it faces. 
USG involvement to date has helped the GOC achieve results, 
but more substantial involvement will show even greater gains. 
 
WOOD