US embassy cable - 05BUCHAREST728

UNCLAS SECTION 01 OF 02 BUCHAREST 000728 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/NCE - WILLIAM SILKWORTH, EB/ESC/TFS - D 
NELSON, S/CT - TKUSHNER, IO/PHO - JSCHWEITZER, REGIONAL 
BUREAUS, 
TREASURY FOR JZARATE AND OFAC DIRECTOR RWERNER 
USDOC FOR 4232/ITA/MAC/AUR/PEEROS/CEED/JBURGESS/JKIMBAL L 
USPTO FOR JURBAN/DLASHLEY-JOHNSON 
 
E.O. 12958: N/A 
TAGS: KVPR, EFIN, PTER, ETTC, PREL, RO, terrorism, finacial control 
SUBJECT: ROMANIA: COMBATING TERRORISM FINANCE: COUNTRY 
PROGRESS AND TRAINING NEEDS 
 
REF: STATE 32688 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION. 
 
1.  (U) Reftel requests Post TFCO,s response to questions 
below evaluating the host government,s ability to cooperate 
in disrupting terrorism financing: 
 
A. (SBU) Question: Describe the amount of assets frozen, 
forfeited or seized by host government pursuant to UNSCR 
Resolutions 1267 and 1373, legal authority under which the 
action was taken and domestic actions taken against 
designated parties. 
 
--Answer:  The National Bank of Romania (BNR) and the 
National Office for the Prevention and Control of Money 
Laundering (NOPCML) have been fully cooperative in seeking to 
identify and freeze terrorist assets.  Post sends the BNR, 
NOPCML, Ministry of Finance, Ministry of Foreign Affairs and 
General Prosecutor,s Office the Department,s lists of 
designated individuals and terrorist organizations.  The BNR 
circulates these lists to all banks and financial 
institutions in the banking system.  The BNR notes, however, 
that the lists furnished often lack sufficient details to 
enable the banking system to identify the individual and 
freeze his/her assets.  Although Romania,s new law on 
terrorism provides for the forfeiture of assets used by or 
provided to terrorist entities, together with finances 
resulting from terrorist activity, to date no arrests, 
seizures or prosecutions have been carried out. 
 
B. (SBU) Question:  What impediments exist for a more robust 
cooperation with your host government on co-sponsoring 
designations? 
 
--Answer: Taking into account the positive trend in bilateral 
relations, GOR agencies, including the BNR and NOPCML, 
support a more robust cooperation with the U.S. in 
co-sponsoring designations.  The new legislation on terrorism 
passed by the parliament in November 2004, which prohibits 
financial and banking transactions with persons included on 
international terrorist lists and requires authorization for 
transactions conducted with entities suspected of terrorist 
activities, contributes to the possibilities for significant 
improvement in this area. 
 
C. (SBU) Question: Is the host government willing to accept 
USG training and technical assistance, including an 
assessment of training needs? 
 
--Answer:  NOPCML in particular would be grateful for 
training and technical assistance from the USG, including an 
assessment of training needs.  This month, representatives 
from NOPCML will visit US FINCEN for training on financial 
crimes, money laundering and terrorist financing.  NOPCML 
requestS training on methods and procedures of analysis for 
financial operations suspected of being linked with terrorism 
and an assessment of IT hardware and software required to 
create a network for on-line encrypted reporting and the 
operative reporting analysis.  Training seminars for judges, 
prosecutors, police and intelligence services in the 
detection and prosecution of terrorist financing operations 
would also be welcomed. 
 
D. (SBU) Question: How would you rank your host county in 
terms of risk that it will be used as a site either for 
significant fund raising or for significant banking services 
for terrorists? 
 
--Answer:  Romania ranks as a &low8 to &medium8 risk in 
terms of fund raising and/or banking services for terrorist 
related activities.  As with several other countries in 
Eastern Europe, corruption and the presence of organized 
crime presents a vulnerability to financial crimes. 
Legislation and regulations designed to combat financial 
crimes and terrorist financing are of recent enactment and 
are fairly comprehensive.  Nevertheless, implementation lags 
and reporting and investigation are not as timely or as 
effective as desired.  Reported instances of financial 
transactions related to terrorist financing in Romania are 
rare occurrences.  In February, NOPCML detected and analyzed 
a case in the northern Romanian city of Iasi involving 
suspects of Middle Eastern origin who were implicated in the 
transfer of millions of dollars in a money laundering scheme 
through a textile business and several shell companies.  The 
funds allegedly were destined for a French credit institution 
associated with Bin Laden family.  Seven suspects were 
arrested in the case.  Investigation by the prosecutor,s 
office in Iasi continues. 
 
2. (U) AmEmbassy Bucharest's reporting telegrams are 
available on the Bucharest SIPRNet 
website:www.state.sgov/p/eru/Bucharest. 
DELARE