US embassy cable - 05WELLINGTON619

UNCLAS SECTION 01 OF 02 WELLINGTON 000619 
 
SIPDIS 
 
FOR EAP/ANP-DRICCI, S/CT-TKUSHNER, EB/ESC/TFS- 
JUNDERRINER, EB/EFFD-CMACCURDY 
 
E.O. 12958: N/A 
TAGS: KTFN, ETTC, EFIN, PTER, KSEP, CVIS, KVPR, KPAO, OIIP, NZ 
SUBJECT: TERRORISM FINANCE: UNSCR 1617 IMPLEMENTATION 
 
REF: (A) STATE 145310; (B) WELLINGTON 160 
 
1. Summary: The New Zealand government announced August 12 
that a FATF evaluation confirmed the need for more 
regulation of the country's financial sector to safeguard 
against money laundering and terrorist financing.  Post 
issued a news release welcoming that announcement, as part 
of our action plan to support New Zealand's efforts to 
combat terrorist financing.  End summary. 
 
2. As requested in ref A, post's Country Team met August 10 
to discuss how we could take advantage of the passage of UN 
Security Council Resolution 1617 and develop an action plan 
to engage the New Zealand government and private sector in 
initiatives supporting efforts to combat terrorist 
financing.  As a result, the Country Team decided to issue a 
media statement acknowledging New Zealand's fight against 
terrorism and welcoming a government announcement expected 
August 12 on a report on New Zealand by the Financial Action 
Task Force (FATF) and the Asia/Pacific Group on Money 
Laundering (APG).  Post's media statement is reprinted in 
Paragraph 9. 
 
3. In their "Report on Observance of Standards and Codes," 
FATF and APG said that New Zealand's legislative measures 
for combating money laundering and terrorist finance were 
"generally sound" and that foundations for an effective 
preventive system were in place.  The report said, however, 
that some minor legislative and regulatory changes could 
enhance the system.  In particular, it recommended that a 
system be introduced to supervise and monitor compliance by 
financial and other institutions with their obligations to 
combat money laundering and terrorist financing.  The report 
noted that New Zealand is not a major financial center and 
that no evidence of terrorist financing activity has been 
uncovered.  The report summarized the level of New Zealand's 
compliance with the FATF 40-plus-9 recommendations. 
 
4. Minister of Justice Goff reported in a statement August 
12 that the FATF evaluation of New Zealand's financial 
sector had confirmed that "planned regulation announced 
early this year is needed to fully safeguard against money 
laundering and terrorist financing."  He noted that, while 
the financial sector had been extensively deregulated in the 
1980s and 1990s, the FATF evaluation outlined the need for 
some re-regulation. 
 
5. In February, Goff announced legislation to implement 
controls over the financial sector to meet FATF requirements 
(ref B).  In June, he introduced a bill addressing FATF 
recommendations on dealing with the proceeds of crime.  The 
government is seeking comments from the financial sector on 
the proposed regulations. 
 
6. The proposed regulations include: a comprehensive 
monitoring framework to ensure all financial institutions 
meet standards for countering money laundering and terrorist 
financing; a registration regime governing money transfer or 
currency change services; statutory requirements for 
financial institutions to comply with customer due diligence 
and to implement internal anti-money laundering systems and 
procedures; and, a requirement for financial institutions to 
obtain, verify and retain information on the identity of the 
originators of wire transfers. 
 
7. The Dominion Post newspaper on August 13 reported on 
Goff's announcement and noted the U.S. Embassy's statement, 
saying that the Embassy welcomed the announcement. 
 
8. Comment: The New Zealand government has been diligent in 
working to update its anti-terrorism law and to comply with 
the FATF 40-plus-9.  It also is conducting a review of its 
anti-terrorism law, which is scheduled to be completed by 
December 1.  End comment. 
 
9. Embassy Wellington's media statement, August 12: 
 
Begin statement: 
 
The United States acknowledges New Zealand's continued 
commitment to thwart terrorism and welcomes the progress 
outlined by Minister Goff this morning. 
 
"New Zealand demonstrates a clear understanding of the 
importance of international cooperation in the areas of 
money laundering and terrorist financing and recognizes that 
it is our shared interests to work together to combat such 
criminal activities," said U.S.  Charg d'Affaires David 
Burnett. 
 
New Zealand's continued technical and training assistance in 
the Pacific region is also deeply valued by the United 
States and other members of the international community. 
 
"The United States enjoys working with New Zealand to assist 
other countries in the region and we look forward to 
continuing to do so," Mr. Burnett added. 
 
The United States also welcomes the recent unanimous UN 
Security Council adoption of Resolution 1617, reaffirming 
and strengthening international sanctions on Al Qaeda, the 
Taliban, and their associates. 
 
 "The U.S. worked closely with other members of the Security 
Council in the drafting of the Resolution, and we look 
forward to deepening our partnership with the United 
Nations, New Zealand and with governments around the world 
to implement its provisions," said Mr. Burnett. 
 
Resolution 1617 improves the international community's 
efforts to combat terrorism by more clearly identifying 
terrorists who are subject to UN sanctions, by endorsing an 
effective set of standards and practices for implementing 
the financial sanctions imposed on them, and by facilitating 
cooperation among various counter-terrorism committees and 
bodies. It also extends the mandate of the Analysis and 
Monitoring Team, which helps the Council oversee the 
implementation of these sanctions. 
 
Resolution 1617 carries forward a consolidated list of 
terrorists tied to the Taliban, Osama bin Laden, and Al 
Qaeda. Inclusion on the list triggers international 
obligations upon all UN member countries, requiring them to 
freeze the assets and prevent the travel of listed 
individuals and to block the sale of arms and military 
equipment. 
 
BURNETT