US embassy cable - 03SANAA503

S E C R E T SANAA 000503 
 
SIPDIS 
 
NOFORN 
 
STATE FOR EB/ESC/ESP (GGLASS), S/CT (FOX), NEA (GRAPO AND 
HEFFERNAN), TREASURY FOR GENERAL COUNSEL (DAUFHAUSER), OFAC 
DIRECTOR (RNEWCOMB), DAS FOR TERRORISM AND VIOLENT CRIMES 
(JZARATE), AND TASK FORCE ON TERRORISM FINANCING 
 
E.O. 12958: DECL: 03/10/2013 
TAGS: CVIS, ETTC, EFIN, PTER, PREL, KVPR, YM, TERFIN 
SUBJECT: TERRORIST FINANCE: NEXT STEPS REGARDING SABAA BANK 
 
REF: 2002 STATE 252456 
 
Classified By: AMB: EJHULL FOR REASONS 1.5 (B) AND (D) 
 
1.  (S/NF)  Embassy Sanaa has now reviewed the targeting 
report noted in para three/reftel.  While the report cited 
several disturbing examples that may implicate Saba Islamic 
Bank (SIB) in supporting terrorist financing, the report also 
stated that the USG had information only on a few specific 
transactions through SIB by terrorists and that these did not 
specify complicity of bank officials.  Embassy Sanaa believes 
that it would not/not be prudent to designate SIB without 
more and better information to substantiate its possible role 
in terrorist financing. 
 
2.  (S/NF) Embassy Sanaa will review and follow up on the 
various sub-reports cited in the targeting report; we note 
that these were submitted over several years and may involve 
issues of context, changed circumstances, and information 
overtaken by events.  We will seek additional,up-to-date 
information on the ownership of SIB and the activities of 
Hamid Al-Ahmar in particular. 
 
3.  (S/NF) We assume as well that U.S. investigators working 
the cases of Sheikh Mohammed Hasan Ali Al-Moayad and the 
so-called "Yemeni money-laundering" ring in the U.S. will be 
seeking any information that might substantiate SIB and 
Al-Ahmar activities in terrorist financing.  We note that the 
targeting report, which was compiled prior to the arrest of 
Sheikh Al-Moayad and to publication of news about the 
money-laundering case, made reference to both of these. 
Further investigation along these lines may therefore be 
directly relevant. 
 
4. (S/NF) As Embassy Sanaa noted in our previous message on 
this issue (2002 Sanaa 3726), we believe that designation of 
Shaykh 'Abd al-Majid Al-Zindani could serve U.S. 
counter-terrorism interests, especially if we can tie him to 
Al-Qa'ida, and get UN endorsement.  Our belief is that USG 
efforts should give primary focus to Shaykh Al-Zindani's 
history and activities, and that this is more likely to 
produce results that could lead to ROYG decisions in our 
mutual interests.  Hamid Al-Ahmar and Sabaa Islamic Bank may 
be secondary/secondary targets for subsequent action as 
further supporting information becomes available. In any 
event, prior to possible designation of Al-Zindani, Hamid 
Al-Ahmar, and/or Sabaa Islamic Bank, we need to develop 
additional evidence, and follow where that evidence may lead 
with appropriate decisions. 
HULL