US embassy cable - 03ANKARA2332

S E C R E T SECTION 01 OF 02 ANKARA 002332 
 
SIPDIS 
 
 
STATE FOR EUR/SE, EB/ESC/ESP (GLASS) AND SC/T 
TREASURY FOR GENERAL COUNSEL (DAVID AUFHAUSER) AND TASK 
FORCE ON TERRORIST FINANCING 
 
 
E.O. 12958: DECL: 04/10/2006 
TAGS: ETTC, EFIN, PTER, CVIS, TU 
SUBJECT: TERRORIST FINANCE:  RESPONSE TO REQUEST ON FROZEN 
ASSETS 
 
 
REF: A. A. STATE 71056 
     B. B. STATE 160165 
 
 
Classified by Economic Counselor Scot Marciel for reasons 1.5 
(b), (d). 
 
 
1.  (S) SUMMARY:  Turkish officials could not provide exact 
dollar amounts regarding the seized assets of NASCO Nasreddin 
Holding A.S. or Wa'el Julaidan's import-export firm Meram 
Seyahat.  However, they did inform us that the GOT has frozen 
the assets of the Nasreddin family and that, following the 
November 2002 designation, the Ministry of Interior deported 
the Nasreddins (father and two sons) from Turkey.  A Turkish 
Finance Ministry official complained to us that the U.S. and 
UN have provided a dearth of specific intelligence to assist 
in their efforts.  Furthermore, he complained of a "double 
standard" in which countries like Britain have not applied 
the same pressure on designees as the GOT.  END SUMMARY. 
 
 
2.  (S) Finance Ministry Inspector Hamza Kacar, who is 
leading the investigations into NASCO and Julaidan, informed 
us April 9 that assets have and are currently being seized 
for NASCO Nasreddin but that no assets have been found for 
Julaidan.  (The Finance Ministry takes the lead in 
investigating such cases, through examination of tax 
records.)  He could not provide an exact amount of NASCO's 
seized assets, noting that the company is being investigated 
by tax offices throughout the country and no centralized 
authority exists to tally the total amount.  Kacar said that 
the investigation could take as long as a year, because 
NASCO's ownership structure has so many affiliates.  Kacar 
complained that the UN designation was vague, and that he did 
not know the extent to which the GOT should investigate 
NASCO's affiliates.  (We notified him April 10 that the GOT 
was only obligated to seize and investigate the assets of the 
entities within the Nada/Nasreddin Network that were 
designated by the U.S. and UN last year - ref B.) 
 
 
3.  (S)  While we do not know the exact amount of frozen 
assets, the designation has had serious consequences for the 
Nasreddin family (father Ahmed Idris and sons Abdul Rahim and 
Saleh), which has filed a lawsuit with the Danistay 
(administrative court).  Kacar said they were deported by the 
Ministry of Interior shortly after the November designation. 
According to MFA Deputy Director General for Research Hakan 
Okcal, NASCO's insurance company, Commercial Union Sigorta 
As, has stopped insuring  and withheld two liability payments 
-- one for $2,100 and a car damages claim for $4,000.  Okcal 
said that officials were claiming they have been a 
respectable, tax-paying Turkish company since 1987.  "They 
are saying that because of the decree, their reputation has 
been marred and they can't deal in the markets anymore," 
Okcal said. 
 
 
4.  (S) Kacar also complained that because the Finance 
Ministry lacks specific evidence linking NASCO Nasreddin 
Holding A.S. to terrorist financing, the Nasreddins may win 
sympathy from the court and have its assets unfrozen.  Kacar 
explained that in the case of Yasin al-Kadi, Turkish courts 
found in favor of the GOT, not only because of the UN 
designation but also because al-Kadi had fled the country. 
Kacar said that in the Nasreddins' case, absent specific 
evidence, the court is more likely to rule in their favor. 
(Ref B provides the background information associated with 
the 14 entities in the Nada/Nasreddin Network.  Most of the 
evidence of terrorist links points to Ahmed Idris Nasreddin 
and Youssef Nada, who were directors of shell companies in 
the Bahamas that have since been closed.  Many of the 14 
designees, including NASCO Nasreddin Holding A.S., are 
affiliates of those shell companies.  However, ref B provides 
scant direct evidence linking affiliates such as NASCO 
Nasreddin Holding A.S. with terrorist financing.) 
 
 
5.  (S) Finally, Kacar said that following GOT asset 
freezing, designees such as al-Kadi and the Nasreddins are 
now residing in the UK.  He has received this information 
from the Nasreddins' partners and from al-Kadi's lawyer.  He 
also said that al-Kadi's lawyer has advised that Yasin 
al-Kadi has upcoming plans to travel to the United States. 
Kacar complained of a "double standard" in which the GOT 
takes strong actions against terrorist financiers only to see 
them live in comfort in another country.  He added that, over 
the long-term, the GOT may eventually find it more difficult 
to partake in asset freezing actions if it perceives a lack 
of uniformity among allies in the war against terrorism. 
(Kacar, however, did not have evidence that al-Kadi or the 
Nasreddins were obtaining funds from designated entities in 
the UK.  Furthermore, Econoff advised Kacar that the UN 
resolution requiring asset seizure does not obligate 
countries to deport associated individuals.) 
PEARSON