US embassy cable - 03KUWAIT675

C O N F I D E N T I A L KUWAIT 000675 
 
SIPDIS 
 
STATE FOR EB/ESC/ESP, NEA/ARP, AND NEA/RA 
TREASURY FOR GENERAL COUNSEL AUFHAUSER 
TREASURY FOR OFAC (NEWCOMB) AND TERRORISM TASK FORCE 
 
E.O. 12958: DECL: 02/24/2013 
TAGS: ETTC, EFIN, PTER, PREL, KU 
SUBJECT: (C) TERRORIST FINANCE: KUWAIT SEEKS EXPLANATION OF 
LDI FREEZE 
 
REF: KUWAIT 284 AND PREVIOUS 
 
Classified By: DCM Frank C. Urbancic for reasons 1.5 (B) and (D). 
 
1. (C) On 23 February Embassy received a diplomatic note from 
the Kuwaiti Ministry of Foreign Affairs (MFA) noting that 
Citibank New York had blocked a $105,862 transfer from the 
Lajnat al-Daawa al-Islamiyya (LDI) (Islamic Call Committee) 
to the account of "Mercy International."  (Post informal 
translation of note follows at para 3).  The note does not 
protest the freeze, but merely requests an explanation of the 
action "at a time when the sanctions committee established 
under resolution 1267 has not made a final decision 
regarding" the LDI freeze.  The note explains that the 
request comes after an inquiry received by the MFA from the 
Social Reform Society, the parent organization of LDI. 
 
2. (C) On 24 February EconChief responded with a letter to 
the MFA explaining that Executive Order 13224 authorizes the 
Secretary of the Treasury to block the assets of any 
 
SIPDIS 
organization or person determined "to assist in, sponsor, or 
provide financial, material, or technological support for, or 
financial or other services to or in support of" terrorist 
acts, and noting that the USG had added LDI to its list of 
such organizations on January 9, 2003.  The letter also notes 
that Post understands the technical hold placed on the LDI 
designation at the UN has apparently been lifted. 
 
3. (C) Following is post's informal translation of the 
February 23 note: 
 
(Begin text) 
 
(Complimentary Opening)  The Ministry of Foreign Affairs 
would like to point out that it has received an official 
letter from the Social Reform Society containing a 
notification from Kuwait Finance House regarding the freezing 
by Citibank the amount of $105,862, transferred from the 
account of the Society's LDI to the account of Mercy 
International.  According to Citibank's notification to 
Kuwait Finance House, the amount was frozen based on 
instructions from the concerned American authorities. 
 
The State of Kuwait, in its are to contribute in all the 
efforts exerted to combat terrorism and its financing, and in 
protecting the reputation of Kuwait's foreign charitable 
works, requests information on the reasons with led the 
concerned American authorities to adopt this decision at the 
time when the sanctions committee established under (UNSC) 
resolution 1267 has not made a final decision regarding 
freezing the funds of LDI, to enable the Ministry to inform 
the concerned Kuwaiti authorities to take the necessary steps 
regarding this matter. 
 
(Complimentary Close) 
 
(End Text) 
JONES