US embassy cable - 05TELAVIV1633

C O N F I D E N T I A L TEL AVIV 001633 
 
SIPDIS 
 
DAVID NELSON IN EB/ESC/TFS; TODD KUSHNER IN S/CT; JOLEEN 
SCHWEITZER IN IO/PSC; NEA/IPA; JUAN ZARATE IN TREASURY; 
ROBERT WERNER IN OFAC; CAROL THOMPSON IN EB/EPPD 
 
E.O. 12958: DECL: 03/18/2015 
TAGS: EFIN, PTER, ETTC, KTFN, IS, COUNTERTERRORISM, ECONOMY AND FINANCE, ISRAELI SOCIETY 
SUBJECT: TERRORISM FINANCE:  2005 UPDATE NO. 2 
 
REF: SECSTATE 32688 
 
Classified By: Economic Counselor William Weinstein for reasons 1.4 (b) 
 and (d) 
 
The following is a response to reftel request: 
 
1.  (U) No assets connected to the Taliban have been found in 
Israel. No assets related to Usama bin Laden or the Al-Qaida 
organization, and individuals or entities associated with 
them, have been detected in Israel. 
 
2.  (U) There are no impediments for more robust cooperation 
with the GOI on co-sponsoring designations.  The GOI is very 
supportive of actions to interdict terrorism finance. 
 
3.  (C) The GOI would likely be willing to accept USG 
training and/or technical assistance to disrupt terrorism 
financing, but it may also emphasize intelligence-sharing to 
enhance its anti-terrorism financing regime.  The GOI has 
broad and comprehensive legislation in place that allows for 
identifying, freezing, seizing, and forfeiting terrorist 
finance-related assets. This includes: 
 
--Legislation generally providing for the seizure of items 
which were used, or which were about to be used, in the 
commission of an offense, or given as payment for its 
commission. 
 
--Legislation specifically providing for the confiscation of 
terrorist finance-related property: the Prevention of 
Terrorism Ordinance (1948) and the Defense Regulations (State 
of Emergency) (1945) contain specific provisions for 
identifying, freezing, seizing, and forfeiting terrorist 
finance-related assets. 
 
--The Prohibition on Terrorist Financing Law, adopted by the 
Israeli Parliament on December 29, 2004, provides additional 
tools for such actions. This law also includes specific 
references to acts of terrorism that have no connection to 
Israel and further enhances Israel,s ability to provide 
assistance to other countries in combating the financing of 
terrorism. 
 
The GOI, however, is appreciative of information on terrorist 
finance networks, particularly when it relates to Palestinian 
terrorist organizations such as Hamas and the Palestine 
Islamic Jihad, and to Hizballah. 
 
4.  (C) Post would rank Israel at "medium" risk of being used 
to raise or bank significant amounts of dollars for terrorism 
financing.  While the Taliban, Usama Bin Laden, and Al-Qaida 
may not be present in Israel, many other terrorist 
organizations such as Hamas, the Palestine Islamic Jihad, and 
the Al-Aqsa Martyrs' Brigade are present and have extensive 
charity networks.  Recent investigations into money 
laundering offenses suggest there may be some weaknesses in 
the banking sector. 
 
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Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
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KURTZER