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

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 006133 
 
SIPDIS 
 
E.O. 12958: DECL: 10/20/2015 
TAGS: PTER EFIN KTFN PREL COUNTERTERRORISM
SUBJECT: ISRAELI COUNTER-TERRORISM OFFICIALS MEET WITH 
STAFFDEL RICKMAN 
 
REF: A. TEL AVIV 04145 
     ¶B. TEL AVIV 05233 
 
Classified By: Ambassador Richard H. Jones for reasons 1.4 (b) and (d). 
 
¶1. (C) SUMMARY:  Israeli MFA and NSC officials briefed 
staffers from the U.S. House Subcommittee on Oversight and 
Investigations on the GOI's efforts against terrorism and 
terrorism finance.  MFA officials stressed the importance of 
the U.S. role in urging European nations to designate 
Hizballah as a terrorist organization and to curb the 
financing of terrorism within their borders by shutting down 
Islamic charities involved in funding terrorism.  They said 
Iran and Syria pose threats to the region's stability because 
of their continued support of Al-Qaeda, Hizballah, Hamas and 
Palestinian Islamic Jihad (PIJ).  MFA officials also 
criticized the Palestinian Authority's (PA's) lack of will to 
fight terrorism finance, and its weak financial system, which 
lacks regulatory powers.  An NSC official cautioned that 
Saudi Arabia continues to support terrorist networks through 
different charities and that numerous financial institutions 
in the United Arab Emirates (UAE) also provide a springboard 
for transfer of money to various terror networks around the 
world.  He indicated that the GOI is working with the PA to 
set up an alternate social support infrastructure to the one 
operated by Hamas, in order to undermine Hamas efforts to 
gain political favor among Palestinians.  END SUMMARY. 
 
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MFA:  Iran and Syria Still Supporting Terrorist Groups 
--------------------------------------------- --------- 
 
¶2. (C) On October 9, staffers from the Subcommittee on 
Oversight and Investigations of the House International 
Relations Committee (HIRC) -- Gregg Rickman, Greg McCarthy, 
David Killion, and Cliff Stammerman -- accompanied by 
econoff, met with the MFA's Director of Nonproliferation and 
Counterterrorism, Yehuda Yaakov.  Yaakov was accompanied by 
his deputy, Joseph Moustaki, Principal Deputy Legal Adviser 
Daniel Taub, and Ismail Khaldi from the ministry's North 
American Division. 
 
¶3. (C) Taub told the Rickman delegation that the current 
legislation used by the GOI in its counterterrorism efforts, 
such as the British Defense (Emergency) Regulations and the 
Prevention of Terrorism Ordinance, dates back to the time of 
the British Mandate.  He indicated that the GOI's legislation 
against terrorism finance includes the Prohibition on Money 
Laundering Law (PMLL) of 2000.  Pursuant to this Act, the 
Ministry of Justice created in 2002 the Financial 
Investigative Unit (FIU), now called the Israel Money 
Laundering and Terror Financing Prohibition Authority (IMPA), 
which is responsible for combating terrorism finance and 
money-laundering (REF A). 
 
¶4. (C) Taub characterized the GOI's efforts against terrorism 
and terrorism finance in the international arena as 
effective.  He remarked that the GOI is signatory to eight 
out of 13 global conventions on terrorism and that the GOI 
advocates a treaty, or other form of international agreement, 
to address suicide bombing.  He underscored the importance of 
vigilance regarding these issues, and said that nations that 
have previously been critical of Israel's approach to 
terrorism have begun making overtures to tap Israel's 
knowledge and expertise. 
 
¶5. (C) Yaakov said that Europe cannot afford to be complacent 
and that European political will and efforts to implement 
measures against terrorism are vital.  He added that state 
sponsors of terrorism such as Iran and Syria must be 
marginalized because their support for Hizballah, Hamas, 
Palestinian Islamic Jihad (PIJ), Al-Qaeda, and others allow 
these groups to develop an "independent capability."  This 
allows these terror groups to function without the support of 
sponsors.  He said Hizballah has an independent capability 
because it is involved in fundraising in places like North 
America, Canada, Africa, and South America. 
 
¶6. (C) Yaakov said Britain and France are not taking 
effective steps to curb the activities of Islamic charities 
such as INTERPAL in Britain and CDSP in France, which he 
claimed are involved in terrorism finance.  He said these two 
organizations have not been outlawed and continue to 
function.  He also added that the GOI knows which Islamic 
charities are involved in funding terrorism.  He indicated 
that when one charity is shut down, another one pops up, and 
cited Germany, the Netherlands, and Denmark as examples of 
countries that have experienced this phenomenon. 
 
¶7. (C) Yaakov said terrorist groups in the Middle East 
function much like proxy powers in a polarized world.  Iran 
and Syria support terror organizations in places like Iraq, 
Lebanon, and the Palestinian territories, which allows these 
state sponsors of terrorism to project their power in the 
region.  Iran and Syria in particular exert influence through 
terrorist networks that seek to affect events by killing and 
inflicting damage to civil infrastructure. 
 
¶8. (C) Yaakov said the Palestinian Authority (PA) lacks the 
ability to curb terrorism finance because it does not have a 
Financial Investigative Unit (FIU).  He told the delegation 
that the PA has no financial transparency, effective 
financial controls, or enforceable regulations to help it 
control the flow of money to terrorist groups operating in 
the territories.  He said the PA has no will or ability to 
fight terrorism finance at this point. 
 
------------------------------------------- 
NSC: Saudi Arabia "Bigger" Threat Than Iran 
------------------------------------------- 
 
¶9. (C) On October 10, the National Security Council's 
director of Counterterrorism Finance, Udi Levi, accompanied 
by MFA official Khaldi, met with the Rickman staff delegation 
and econoff.  Levi said the GOI is not optimistic about Saudi 
Arabia's efforts against terrorism or terrorism finance.  He 
said the Saudi government is still one of the major 
supporters of terrorism around the world and that it has not 
curbed non-governmental organizations involved in funding 
terrorist groups.  He said Saudi Arabia has many "mediators" 
who move money between private donors, charities, and 
terrorist groups. 
 
¶10. (C) Levi said Iran is also involved in providing money to 
Palestinian terrorist groups.  He asserted that Iran tried to 
funnel three million dollars through the UAE to various 
(unspecified) Palestinian terrorist groups in the occupied 
territories, but that GOI and UAE officials prevented the 
transfer.  He said the UAE and other gulf countries are 
transit points for terror money and for the proliferation of 
weapons. 
 
¶11. (C) Levi criticized European dialogue with Hamas, saying 
that it legitimizes the organization as a player in the 
political arena.  He said that Hamas is a terrorist 
organization that works closely with Al-Qaeda and other 
terrorist networks.  In conclusion, Levi discussed the GOI's 
efforts to help the PA set up an alternate social security 
program, designed to help the Palestinians and to undermine 
Hamas's system of social welfare (Ref B).  The financial 
support slated for the PA will come from an escrow account 
made up of a variety of Palestinian pension accounts, and 
other funds paid into by Palestinian workers.  The GOI will 
transfer money from this escrow account to the PA to help it 
set up a social security system in the territories.  He 
indicated that the Prime Minister's office and Ministry of 
Finance are aware of this program and have given it full 
support. 
 
¶12. (U) This cable was cleared by the staff delegation. 
 
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