US embassy cable - 04DUBLIN1367

C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 001367 
 
SIPDIS 
 
FOR EUR/ERA 
 
E.O. 12958: DECL: 09/15/2014 
TAGS: PTER, ETTC, EFIN, KTFN, EUN 
SUBJECT: IRELAND'S AUTHORITY TO FREEZE TERROR ASSETS 
 
REF: SECSTATE 193684 
 
Classified By: PEO Chief Mary Daly per reasons 1.4 (b) and (d) 
 
1.  (C)Summary.  Ireland generally follows the European Union 
lead in the fight on terrorist financing.  Currently, Ireland 
can automatically freeze the assets of domestic terrorist 
groups or transnational terrorist groups designated by the 
EU.  In all other instances, Ireland can only freeze assets 
if an investigation reveals that the particular assets within 
Ireland are from the proceeds of crime.  Pending legislation 
would allow the GOI to seize assets of transnational 
terrorists groups independent of an EU decision and also 
regardless of whether the assets are the proceeds of a crime 
or are assets that will be used in the commitment of a future 
crime.  GOI officials state the new terrorist legislation 
likely will be passed by the end of 2004.   End Summary. 
 
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National Authority to Freeze Terror Assets 
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2.  (C)Under the Offenses Against the State Act, the GOI can 
freeze assets of domestic terrorist groups regardless of EU 
designation.  In regards to transnational terrorist assets, 
Ireland can only freeze bank account assets if the group is 
on the EU terrorist list.  However, under the Criminal 
Justice and Terrorist Offenses Bill of 2002 (still pending 
ratification), Ireland will be able to freeze the assets of 
any terrorist group, foreign or domestic, independently of 
any EU designation.  Embassy government contacts from the 
Department of Justice and the Central Bank expect the 
Terrorist Offenses Bill to be passed by the end of 2004. 
 
3.  (C)In terms of criminal assets, Ireland freezes accounts 
on the basis of the Criminal Justice Act of 1994.  The 
current system is that of civil forfeiture.  The courts 
pursue ill-gotten assets, forcing suspected criminals to 
prove that their gains are legitimate.  The individuals are 
innocent until proven guilty, but their assets can be held if 
suspected of being the proceeds of a crime. 
 
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Current Law and The Process of Freezing Assets 
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4.  (C)The Irish Central Bank is authorized to freeze the 
assets of terrorist groups that have been designated by the 
EU, which in turn takes its lead from the UN 1373 
Counter-Terrorism Committee.  EU designation has immediate 
legal effect in Ireland and is enforced.  The Central Bank 
uses exchange mechanisms to freeze the assets concerned. 
When the GOI receives information from entities other than 
the EU (such as the US Treasury Department) regarding 
terrorist groups, the Central Bank will notify financial 
institutions and Gardai (national police force) to conduct 
investigations and surveillance on suspect groups.  When this 
is done, the Central Bank will take one of three courses of 
action: 
 
 ---  Investigations reveal assets are not proceeds of a 
crime and no action is taken. 
 
 ---  There is some suspicion that assets are from the 
proceeds of a crime; therefore, the GOI may prevent 
international transfer of the money (i.e., the money cannot 
be moved from a bank in Ireland to a bank in the UK). 
However, this does not prevent the money from being 
transferred to another bank within Ireland or simply being 
withdrawn from the bank altogether. 
 
 ---  Investigation reveals that the assets are the proceeds 
of a crime and are frozen.  The legal standard for this 
action is higher than suspending assets from international 
transfer, and it is also important to note that for assets to 
be frozen they must be from the proceeds of the crime (i.e., 
robbed a bank).  Assets cannot be frozen on the suspicion 
that they will be used for the future commitment of a crime 
(i.e., using the money to buy the tools to rob a bank in the 
future). 
 
GOI officials stressed that when assets are frozen as a 
result of information given by non-EU entities, the assets 
are frozen only because police discovered the assets are the 
proceeds of a crime, not because the non-EU entity designated 
the group a terrorist group. 
 
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Future Law - Criminal Justice and Terrorists Offenses Bill 
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5.  (C)When the Criminal Justice and Terrorist Offenses Bill 
of 2002 is passed, it will give the Minister for Justice the 
ability to freeze assets of terrorists groups, regardless of 
whether the assets are the proceeds of a crime or will be 
used to commit a future crime or terrorist act.  The GOI will 
be able to freeze assets regardless of any EU designation. 
The legislation has been delayed for two years because it 
contains three distinct parts - one dealing with terrorists 
financing, one dealing with ratifying language for an EU 
terrorist directive,  and one dealing with several other UN 
terrorist conventions.  Without giving specifics, a Justice 
contact stated that while the terrorists assets portion of 
the bill has been ready for several months, issues regarding 
the EU directive have prevented the bill from being submitted 
to Parliament.  However, the contact also assured Emboff that 
the issue was finally resolved this month, and his opinion is 
that the legislation will be passed before the end of the 
year. 
 
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Success Stories 
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6.  (C)The GOI has frozen all assets put forward by the EU 
that pertain to Ireland.  Ireland has also frozen assets 
based on information given from non-EU sources.  While not 
being able to supply specifics, a Justice official stated 
that "a few" tips given by the US Department of Treasury led 
to either the freezing or suspension of international 
transfer of assets of someone who was found to have committed 
a crime in Ireland. 
 
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Significant Obstacles 
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7.  (C)The Department of Justice says that it does not 
necessarily arrest each perpetrator, whether criminal or 
terrorist, but it is successful at snatching assets and 
eliminating opportunities.  Through the Central Bank, the 
Irish are successful at legislating and implementing freezes 
on assets. Recently, the UK and other EU members have been 
looking at the Irish model in terms of adopting such 
practices. 
 
8.  (C)Current laws that tie GOI actions to EU designations 
offer limited penalties.  The new legislation will give the 
Irish more authority to address terrorist financing and 
provide more severe penalties commensurate with terrorist 
crimes. 
KENNY