US embassy cable - 05OTTAWA680

C O N F I D E N T I A L OTTAWA 000680 
 
SIPDIS 
 
EB/ESC/TFS (DAVID NELSON), EB/EPPD (CAROL THOMPSON), S/CT 
(TODD KUSHNER), IO/PSC (JOLEEN SCHWEITZER), WHA/CAN 
TREASURY (JUAN ZARATE) 
OFAC (ROBERT WERNER) 
 
E.O. 12958: DECL: 02/25/2006 
TAGS: KTFN, KVPR, EFIN, PTER, ETTC, PREL, CVIS, CA, Terrorism 
SUBJECT: TERRORISM FINANCE: OTTAWA - 2005 UPDATE NO. 2 - 
EMBOFF ROLE 
 
REF: SECSTATE 32688 
 
Classified By: DCM John Dickson.  Reason:  1.4 (e). 
 
1.  (SBU) Following please find Embassy Ottawa's response to 
reftel questions on terrorist financing. 
 
(A) Amount of assets frozen, forfeited or seized (in US 
dollars) by host government pursuant to UNSCR Resolutions 
1267 and 1373, the legal authority under which the action 
was taken (legislative, judicial, administrative, 
regulatory); and what additional domestic actions have 
been taken against the designated parties. 
 
-- Canada has ratified all the UNSCRs on terrorism, enforces 
all UN resolutions, and is active in international fora 
working to stem terrorist financing. 
 
As of January 1, 2005, slightly more than C$114,000 (about 
US$90,000) is frozen in 14 accounts in Canadian financial 
institutions.  The value of frozen assets fluctuates as 
financial institutions review their records in light of new 
information. 
 
This value is the total sum frozen pursuant to regulations 
under the UN Act, namely, the United Nations Afghanistan 
Regulations, the United Nations Suppression of Terrorism 
Regulations, and the Criminal Code of Canada provisions put 
in place in 2001. 
 
 
(B) What impediments exist for more robust cooperation 
with your host government on co-sponsoring designations? 
 
-- No substantive impediments.  Frequent and coordinated 
communication between USG and GOC officials, in capitals and 
in international fora such as the G-7 and FATF, facilitate 
cooperation. 
 
(C) Is your host government willing to accept USG training 
and technical assistance, including an assessment of 
training needs?  In your view, what are your host 
government's priority training and technical assistance 
needs with regard to the development and/or enhancement of 
their anti-terrorist financing regimes in general and 
their sanctions program in particular? 
 
--  Not applicable to Canada. 
 
However, Canada would probably be willing to provide training 
and technical assistance to other countries in the context of 
programs under a multilateral umbrella such as FATF. 
 
(D) How would you rank your host country in terms of risk 
that it will be used as a site either for significant fund 
raising or for significant banking services for terrorists 
("High," "Medium," or "Low")? "Significant" means raising 
or banking tens of thousands of dollars. Please provide a 
brief justification for your opinion, including references 
to intel or other reporting, as appropriate. 
 
--  Risk of al-Qaeda related fundraising in Canada is low, 
comparable to the risk of similar activity in the U.S.  The 
GOC's notification system is quick and effective; the 
financial system is sophisticated; and financial institutions 
are vigilent in due-diligence regarding money laundering and 
possible terrorist-related transactions. 
 
Although Canada has taken steps to bring its terrorist list 
into closer conformity to the U.S. list (designating the 
"welfare" arms of Hamas and Hizballah, for example) there are 
still discrepancies that could permit funds to be raised for 
terrorist organizations.  The most prominent example would be 
the Tamil Tigers. 
 
2.  (U)  Questions on cooperation with Canada to counter 
terrorist financing may be addressed to Lucy Abbott, First 
Secretary Finance and Economics, at 613-688-5226 or 
 
SIPDIS 
abbottlk@state.gov. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
CELLUCCI