Cablegate: New Zealand Tightens Terrorism Finance Law

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

UNCLAS WELLINGTON 000504

SIPDIS

STATE FOR EB/ESC/TFS, EAP/ANP AND S/CT

E.O. 12958: N/A
TAGS: KTFN EFIN PTER PREL NZ
SUBJECT: NEW ZEALAND TIGHTENS TERRORISM FINANCE LAW

REF: WELLINGTON 160

1. New Zealand's Parliament has passed legislation
strengthening the country's terrorism finance law. The
legislation extends until 2007 the country's UN Security
Council-related designations of terrorist organizations. It
also makes illegal the intentional financing of non-
designated organizations that engage in terrorism. Those
provisions were aimed at keeping New Zealand law in
compliance with UN Security Council resolutions and at
following Financial Action Task Force recommendations.

2. The legislation, known as the Terrorism Suppression
Amendment Bill (No. 2), passed June 17 by a 97-10 vote. The
Green and Maori Parties opposed it, viewing the bill as
unnecessary and as a threat to New Zealanders' civil
liberties.

3. The Terrorism Suppression Act 2002, which allows the
government to designate terrorists and terrorist
organizations and to freeze their assets, had required that
New Zealand's UN-related designations expire in October
unless renewed individually by the High Court. The
amendment extends the expiration date by two years. The
amendment also creates a new legal sanction against those
who knowingly collect or provide funds to benefit non-
designated terrorist organizations. The act already had
made illegal the financing of terrorist acts and of
designated terrorist entities.

4. The government is considering additional anti-terrorist
and anti-money-laundering measures, partly because its
largely deregulated financial system has created potential
loopholes that must be closed to meet international
standards. The government also has acknowledged a need to
look at its procedures for designating terrorists (reftel)
and has ordered a review of the 2002 law, which the Foreign
Affairs, Defense and Trade Committee must complete by
December 1.

SWINDELLS

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