US embassy cable - 05OTTAWA3204

S E C R E T OTTAWA 003204 
 
SIPDIS 
 
NOFORN 
 
STATE FOR EB/ESC/TFS (JEAN CLARK), S/CT (TODD KUSHNER), 
INL/C/CP (STEVEN PETERSON), IO/PSC (BETSY FITZGERALD), AND 
WHA/CAN 
NSC (KEMERSON) 
 
E.O. 12958: DECL: 12/30/2015 
TAGS: PARM, PREL, MNUC, EFIN, CA 
SUBJECT: OTTAWA: COMBATING WMD PROLIFERATION VIA FINANCIAL 
INTELLIGENCE UNITS 
 
REF: STATE 158275 
 
Classified By: Wendy Moore, Economics Counselor, Ottawa.  Reason:  1.4( 
e). 
 
Classified By: Wendy Moore, Economics Counselor, Ottawa. 
Reason:  1.4(e). 
 
1.  (C/Noforn) Foreign Affairs Canada Nuclear 
Non-proliferation officer Colin Smith has provided 
an update on implementing reftel proposals but 
warned that "bureaucratic inertia" and the need for 
legislative amendments will delay progress.  He 
confirmed that all elements of the government with a 
stake in the issue have been made aware of the contents 
of the demarche and legal advisors have explored, 
and ruled out, the possibility of taking action under 
current legal constructs.  He noted that one possible 
law, the Special Economic Measures Act of 1992, 
implemented to sanction Zimbabwe, permits action to 
prevent "a grave threat to international security." 
However, the Supreme Court ruled against the one attempt to 
actually invoke the law against Zimbabwe, and FAC 
legal advisors do not believe it would be successful in 
this case. 
 
Piggy-backing on the legislative review 
--------------------------------------- 
 
2.  (C) Fortuitously, Canada's Anti-Money 
Laundering/Anti-Terrorist Financing legislation is 
undergoing Parliamentary review, providing an opportunity 
to insert the amendments necessary to expand the powers 
that enable the GOC to act against terrorist financing to 
permit similar action against WMD proliferation.  In 
addition, a meeting is planned at the DG level in coming 
weeks that will focus on the "significant change" in 
perspective by non-proliferation policy makers in 
establishing the executive basis for action against WMD 
proliferators. 
 
3.  (S/Noforn) Comment:  This will be a slow process.  We 
have made sure it is on the GOC radar screen and will be 
monitoring revision of the legislation to make sure this 
issue stays in play.  Smith welcomed our standing offer to 
"intercede," as might be necessary, with the appropriate 
government Department to expedite this process. END COMMENT. 
 
Visit Canada's Classified Web Site at 
http://www.state.sgov.gov/p/wha/ottawa 
 
WILKINS