US embassy cable - 05MADRID3512

C O N F I D E N T I A L MADRID 003512 
 
SIPDIS 
 
E.O. 12958: DECL: 10/02/2015 
TAGS: EFIN, KTFN, KPAO, PREL, PGOV, PTER, SP, EUN, Counterterrorism 
SUBJECT: TERRORISM FINANCE - SPAIN'S REACTION ON ECI COURT 
RULINGS AND EU DESIGNATION SYSTEM 
 
REF: SECSTATE 172518 
 
Classified By: ECONOMIC COUNSELOR WHITNEY BAIRD FOR REASONS 1.4 (B) and 
 (D). 
 
1. (C) EconOff discussed reftel discussion points with Miguel 
Enrique Garcia Herraiz, Area Director for EU Terrorism Issues 
within the MFA's Subdirectorate on International Terrorism. 
He said that the GOS is pleased with the European Court of 
First Instance's ruling on the "Swede 3" cases since the 
ruling strengthens the EU's ability to block terrorist 
financing and sets a good precedent for other entities that 
may appeal.  Further, the GOS is pleased that the court 
determined that there had not been a lack of due process and 
that the EU's legal authority to freeze assets was upheld. 
Sweden has already indicated to Spain that it is expecting an 
appeal, a process they predict to last no less than six 
months. 
 
2. (C) EconOff also opened a dialogue on the other discussion 
points.  Herraiz noted his personal concern that the 
expansion of the  EU could reduce the efficiency of the 
designation process due to the need to maintain consensus. He 
emphasized the importance of Spain's national terrorism 
finance mechanisms as a supplement to those of the EU. 
Herraiz, who has typically worked primarily with the Spanish 
police force, also noted personal concern that a greater use 
of information from the intelligence community could 
undermine the viability of judicial cases by infringing on 
the designated individual's rights. 
 
3. (C) Spain's Financial Action Task Force Mutual Evaluation 
report will be released in February. Herraiz expects the GOS 
to be fully compliant with all points, with the possible 
exception of one or two areas of partial compliance.  He does 
not believe that the GOS is fully compliant with Special 
Recommendation III on asset freezing, and believes this may 
be noted in the report. 
 
4. (U) Representatives from Spain will attend the proposed 
Nov. 7-8 working group in London. However, they have yet to 
receive any official invitation or information about the 
event. We will maintain a dialogue on the reftel discussion 
points with the GOS and will report any developments septel. 
AGUIRRE