US embassy cable - 05MADRID4059

UNCLAS SECTION 01 OF 02 MADRID 004059 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EUR/WE - GCLEMENTS AND MHALL; EUR/PPD; EB; 
IIP/GEUR 
 
E.O. 12958: N/A 
TAGS: EFIN, KTFN, PTER, KPAO, SP, Counterterrorism 
SUBJECT: SUCCESSFUL TERORRISM FINANCE CONFERENCE HOSTED IN 
MADRID 
 
 
1. (U) SUMMARY: From November 14-16, the Fundacion Jose 
Ortega y Gasset hosted a conference entitled Terrorism 
Finance: What Control is Possible?  The conference was 
attended by a diverse mix of government officials, academics, 
journalists, and students. The Embassy contributed by 
providing speakers from the USG. Assistant Secretary Wayne's 
presentation on designations generated a great amount of 
interest. The Public Affairs section also set up a series of 
successful interviews that garnered favorable media coverage. 
A greater effort should be made next time to generate 
attendance from the private sector. END SUMMARY. 
 
2. (U) From November 14-16, the Fundacion Jose Ortega y 
Gasset hosted its fourth annual conference under its 
Permanent Seminar on Studies on Terrorism series.  The 
subject of this year's conference was Terrorism Finance: What 
Control is Possible?  The conference was attended by a 
diverse mix of government officials, academics, journalists, 
and students. As in past years, the Embassy contributed by 
providing speakers from the USG. The Public Affairs section 
also set up a series of successful interviews that garnered 
favorable media coverage. 
 
3. (U) Three different panelists provided the U.S. 
perspective.  Michael Hurley, Senior Director for Policy at 
the 9/11 Public Discourse Project, gave an account of how the 
9/11 terrorist attacks were financed from the point of view 
of the 9/11 Commission. Interviews with Hurley appeared in 
the Spanish dailies El Pais, El Mundo, and ABC. William 
Baity, Deputy Director of the Department of Treasury's FinCEN 
(Financial Crimes Enforcement Network), provided an overview 
of his organization and how it interacts with other USG 
agencies.  Baity also noted that his organization works 
closely with SEPBLAC, Spain's financial intelligence unit. 
The last USG presentation was given via digital video 
conference by Assistant Secretary for Economic and Business 
Affairs Anthony Wayne, accompanied by David Nelson, Director 
of the Office of Terrorism Finance and Economic Sanctions at 
the DOS. 
 
4. (U) The aforementioned USG visitors, a U.S. Embassy 
representative, and Senior Special Agents Armando Astorga Jr. 
and Mark Middleton of the Department of Homeland Security's 
Financial and Trade Investigations Division, participated in 
a roundtable luncheon during the conference which featured 
Antonio Camacho Vizcaino, the Ministry of Interior's 
Secretary of State for Security. Camacho led the group in an 
 
SIPDIS 
interesting debate about the necessities of information 
sharing amongst Spain's own government entities, as well as 
with foreign governments.  He also mentioned the battle that 
Spain faces with the hawala money transfer network, and noted 
that many of the hawaladars do not know that they are 
transferring money to and from terrorists. 
 
5. (U) Spain's Minister of Interior Jose Antonio Alonso was 
the most senior GOS speaker.  He introduced the conference 
together with U.S. Ambassador Aguirre. Both of their 
presentations received good press coverage.  Alonso noted 
that the Ministry was active in its struggle against 
terrorism, and mentioned that it currently had 85 separate 
ongoing terrorism finance investigations underway.  The 
Minister indicated that the implementing regulations to the 
2003 Terrorism Finance Law were in an "advanced state of 
progress." 
 
6. (U) Substantively, the most interesting GOS presentation 
was by Telesforio Rubio, General Commissioner for 
Intelligence at the Directorate General of the Police. He 
complemented Michael Hurley's presentation by giving a 
detailed account of how the March 11 Madrid train bombings 
were financed.  Rubio presented information that differs from 
previous press accounts. For example, he stated that the 
terrorists had access to more money than suggested by prior 
press accounts' estimates of the cost of the bombings, 
typically from 30,000 to 40,000 euro. Rubio stated that the 
explosives were obtained in a drugs for explosives deal in 
which the value of hashish traded was roughly 100,000 euro 
street value.  He revealed that the police found a reserve of 
cash and drugs which gave the terrorists access to 
approximately 1 million euro. He did add the caveat that the 
investigation was still ongoing, thus his presentation was 
not definitive. 
 
7. (U) Assistant Secretary Wayne's presentation on 
designations elicited a great deal of interest from the MFA 
officials attending the conference.  The attendees found the 
conceptual approach to be intriguing. One MFA official 
confessed to us that the different evidentiary standards we 
use for prosecutions and designations "sounded foreign" to 
him. MFA officials and a high-ranking Ministry of Interior 
terrorism advisor both asked for a copy of A/S Wayne's 
remarks. This should prove to be an excellent basis for a 
richer dialogue on this topic. 
 
8. (U) In the future, a greater effort should be made to 
generate attendance from the private sector. Deputy FinCen 
Director Baity explained briefly how his agency tried to 
obtain feedback from the private sector on a regular basis. 
Further, other presenters mentioned that the private sector 
has to implement often costly terrorism finance-related 
regulations. In fairness to the Foundation, it had tried to 
organize a dinner with financial sector representatives but 
was forced to cancel it due to scheduling conflicts of the 
invitees. 
 
9. (SBU) Embassy Comment: It was clear from our conversations 
on the margins of the conference with police and financial 
intelligence unit officials that the GOS still takes the 
struggle against terrorism finance very seriously.  When 
questioned about the delay in the implementing regulations to 
the 2003 Terrorist Finance Law, a key MFA contact replied 
that the law had been passed during the previous conservative 
government's tenure, and thus it may be politically difficult 
to implement.  It would be unfortunate if this were the case, 
although, irrespective of how much longer it takes to 
finalize the implementing regulations, the GOS continues to 
place a great deal of emphasis on the terrorism 
finance-related aspects of terrorism prevention and 
investigation. As in previous years, this year's conference 
served U.S. public diplomacy purposes and enhanced 
working-level contacts. End Comment. 
 
 
AGUIRRE