US embassy cable - 05DUBLIN353

C O N F I D E N T I A L SECTION 01 OF 02 DUBLIN 000353 
 
SIPDIS 
 
EB/ESC/TFS (DAVID NELSON) 
S/CT (TODD KUSHNER) 
IO/PSC (JOLEEN SCHWEITZER) 
EUR/UBI 
TREASURY (JUAN ZARATE) 
OFAC (ROBERT WERNER) 
EB/EPPD (CAROL THOMPSON) 
 
E.O. 12958: DECL: 10/27/2014 
TAGS: KTFN, KVPR, EFIN, PTER, ETTC, PREL, CVIS 
SUBJECT: TERRORISM FINANCE: 2005 UPDATE NO. 2 
 
REF: A. STATE 32688 
 
     B. DUBLIN 254 
     C. DUBLIN 310 
 
Classified By: POL/ECON CHIEF MARY DALY, FOR REASONS 1.4 (B), (D) 
 
(C) Post welcomes the opportunity to provide input about 
Ireland's efforts to combat terrorism finance (TF).  The 
answers below are keyed to ref A para 10 questions: 
 
A. Since the publication of European Council Regulation No. 
881/2002 (the EU regulation mechanism corresponding to UNSCR 
1267), Ireland has frozen seven accounts belonging to five 
individuals.  Under Council Regulation No. 2580/2001 
(corresponding to UNSCR 1373), Ireland has frozen the account 
of one individual.  The aggregate value of funds frozen under 
these two Regulations is approximately euro 90,000.  No 
additional domestic actions were taken against these 
individuals.  In discussions with emboffs, Department of 
Finance (DOF) and Central Bank officials said that no 
accounts were frozen under either Regulation in 2004.  They 
added that suspects in terrorism financing (TF) schemes, in 
order to escape detection from ever-increasing scrutiny, have 
diversified financial exchanges away from banks and into 
'informal banking,' such as Halawa, charities and insurance 
transactions.  According to the officials, in response to 
these forms of alternative banking that have become popular 
with Ireland's growing immigrant population, the DOF and 
Central Bank are in the process of developing new authority 
to supervise such transactions. 
 
B. Irish officials have cited lack of information-sharing as 
the biggest impediment to Irish co-sponsorship of 
designations.  In a number of meetings, DFA officials have 
charged the USG with providing only assertions, allegations, 
and limited details, rather than the 'smoking gun' of 
evidence.  DOF/Central Bank officials added that delays in 
identifying suspected terrorism financiers, as well as 
problems in certifying the suspects' identities, are 
hindrances to the freezing of assets.  Another issue recently 
raised was that of procedure.  Regarding the March 1 oral 
demarche on Hizballah designation, DFA officials told emboffs 
(ref B) that presenting evidence orally was procedurally 
questionable and could possibly be ruled out of order in EU 
Clearinghouse discussions. 
 
C. Regarding willingness to accept USG training and technical 
assistance, GOI officials suggested that training programs 
for police would be most pertinent.  With the passage of the 
Criminal Justice (Terrorism Offenses) Act on March 8th, (ref 
C) police have new authorities and are developing strategies 
for targeting and seizing the assets of suspected terrorists. 
 DOF and Central Bank officials expressed interest in USG 
seminars but acknowledged that they are already regular 
participants in EU seminars and training programs on TF. 
 
D. The risk of Ireland becoming a site for significant 
fund-raising or banking services for terrorists is low, 
notwithstanding a growing population of immigrants with ties 
to the Middle East.  First, Ireland coordinates well 
internally among domestic government departments and with 
financial institutions on TF issues.  Second, Ireland has 
demonstrated a strong willingness to cooperate 
internationally and has implemented all forty Financial 
Action Task Force (FATF) recommendations along with the eight 
Special Recommendations.  Third, Ireland's new Terrorism 
Offenses Act is a powerful tool to combat TF and also opens 
the door to ratifying the four remaining UN 
Conventions/Protocols on terrorism.  According to a DOJ 
official, this new law is unique in that it targets proceeds 
or finances of crime/terrorism instead of the suspects.  The 
law builds on the 1994 Proceeds of Crime Act, which allows 
senior police officials, who are satisfied that a person is 
using funds for illegal activities, to apply directly to 
courts to freeze the funds.  In this manner, the funds or 
proceeds of criminal activity (and now terrorism) will be 
targeted, even while evidence against the individual may be 
insufficient to charge or prosecute him.  If the court is 
satisfied that circumstances warrant freezing, it will, in 
theory, order seizure of assets for 40 days.  During this 
period, police must apply for an 'interlocutory' order, 
freezing the assets for seven years.  Suspects have right of 
appeal to reclaim their assets, but must prove a legitimate 
claim to and use of those assets.  Any proceeds beyond this 
period revert to the State.  The new legislation, following 
on the successful use of the Proceeds of Crime Act to freeze 
ill-gotten assets, puts the onus on the suspect to prove how 
he obtained and plans to use unexplained assets. 
BENTON