Cablegate: Romania: Combating Terrorism Finance: Country

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 BUCHAREST 000728

SIPDIS

SENSITIVE

STATE FOR EUR/NCE - WILLIAM SILKWORTH, EB/ESC/TFS - D
NELSON, S/CT - TKUSHNER, IO/PHO - JSCHWEITZER, REGIONAL
BUREAUS,
TREASURY FOR JZARATE AND OFAC DIRECTOR RWERNER
USDOC FOR 4232/ITA/MAC/AUR/PEEROS/CEED/JBURGESS/JKIMBAL L
USPTO FOR JURBAN/DLASHLEY-JOHNSON

E.O. 12958: N/A
TAGS: KVPR EFIN PTER ETTC PREL RO
SUBJECT: ROMANIA: COMBATING TERRORISM FINANCE: COUNTRY
PROGRESS AND TRAINING NEEDS

REF: STATE 32688

SENSITIVE BUT UNCLASSIFIED - NOT FOR INTERNET DISTRIBUTION.

1. (U) Reftel requests Post TFCO,s response to questions
below evaluating the host government,s ability to cooperate
in disrupting terrorism financing:

A. (SBU) Question: Describe the amount of assets frozen,
forfeited or seized by host government pursuant to UNSCR
Resolutions 1267 and 1373, legal authority under which the
action was taken and domestic actions taken against
designated parties.

--Answer: The National Bank of Romania (BNR) and the
National Office for the Prevention and Control of Money
Laundering (NOPCML) have been fully cooperative in seeking to
identify and freeze terrorist assets. Post sends the BNR,
NOPCML, Ministry of Finance, Ministry of Foreign Affairs and
General Prosecutor,s Office the Department,s lists of
designated individuals and terrorist organizations. The BNR
circulates these lists to all banks and financial
institutions in the banking system. The BNR notes, however,
that the lists furnished often lack sufficient details to
enable the banking system to identify the individual and
freeze his/her assets. Although Romania,s new law on
terrorism provides for the forfeiture of assets used by or
provided to terrorist entities, together with finances
resulting from terrorist activity, to date no arrests,
seizures or prosecutions have been carried out.

B. (SBU) Question: What impediments exist for a more robust
cooperation with your host government on co-sponsoring
designations?

--Answer: Taking into account the positive trend in bilateral
relations, GOR agencies, including the BNR and NOPCML,
support a more robust cooperation with the U.S. in
co-sponsoring designations. The new legislation on terrorism
passed by the parliament in November 2004, which prohibits
financial and banking transactions with persons included on
international terrorist lists and requires authorization for
transactions conducted with entities suspected of terrorist
activities, contributes to the possibilities for significant
improvement in this area.

C. (SBU) Question: Is the host government willing to accept
USG training and technical assistance, including an
assessment of training needs?

--Answer: NOPCML in particular would be grateful for
training and technical assistance from the USG, including an
assessment of training needs. This month, representatives
from NOPCML will visit US FINCEN for training on financial
crimes, money laundering and terrorist financing. NOPCML
requestS training on methods and procedures of analysis for
financial operations suspected of being linked with terrorism
and an assessment of IT hardware and software required to
create a network for on-line encrypted reporting and the
operative reporting analysis. Training seminars for judges,
prosecutors, police and intelligence services in the
detection and prosecution of terrorist financing operations
would also be welcomed.

D. (SBU) Question: How would you rank your host county in
terms of risk that it will be used as a site either for
significant fund raising or for significant banking services
for terrorists?

--Answer: Romania ranks as a &low8 to &medium8 risk in
terms of fund raising and/or banking services for terrorist
related activities. As with several other countries in
Eastern Europe, corruption and the presence of organized
crime presents a vulnerability to financial crimes.
Legislation and regulations designed to combat financial
crimes and terrorist financing are of recent enactment and
are fairly comprehensive. Nevertheless, implementation lags
and reporting and investigation are not as timely or as
effective as desired. Reported instances of financial
transactions related to terrorist financing in Romania are
rare occurrences. In February, NOPCML detected and analyzed
a case in the northern Romanian city of Iasi involving
suspects of Middle Eastern origin who were implicated in the
transfer of millions of dollars in a money laundering scheme
through a textile business and several shell companies. The
funds allegedly were destined for a French credit institution
associated with Bin Laden family. Seven suspects were
arrested in the case. Investigation by the prosecutor,s
office in Iasi continues.

2. (U) AmEmbassy Bucharest's reporting telegrams are
available on the Bucharest SIPRNet
website:www.state.sgov/p/eru/Bucharest.
DELARE

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