VZCZCXRO7840
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHTL #0121 0571506
ZNR UUUUU ZZH
R 261506Z FEB 07
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 9562
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS TALLINN 000121 
 
SIPDIS 
 
DEPT FOR EUR/NB AND EEB/ESC/TFS Katherine Leahy and Leanne Cannon 
S/CT Patty Hill, Anne Galer and Gary Novis 
 
SIPDIS 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: EFIN ETTC KTFN LE PREL PTER EN
SUBJECT: ESTONIA'S STANCE ON ILLEGAL CASH COURIERS 
 
REF: STATE 16120 
 
¶1.  (U) Econoff delivered reftel points to Jaap Ora, Director of the 
1st 
Division of the MFA's Policy Planning Department - which is 
responsible for 
coordinating Terrorist Financing issues for the GOE. 
 
¶2.  (U) Estonia's main legal instrument in the fight against 
terrorist financing 
and illegal cash transactions is the January 2004 Money Laundering 
and Terrorist 
Financing Prevention Act, as amended.  According to the Act, credit 
and 
financial institutions are required to identify all individuals or 
representatives who carry out cash transactions above EEK 100,000 
(approximately 
$8,600) or non-cash transactions above EEK 200,000 (approximately 
$17,100). An 
amendment to the MLTFPA that came into force in March 2005 required 
 
identification of all clients who use the services of any financial 
institution 
for the first time, while the method of identification should enable 
re- 
identification,  Failure to comply with the identification 
requirement brings 
along criminal liabilities. 
 
¶3.  (U) Beginning June 15, 2007, control over cash entering Estonia 
from outside 
the EU will be based on the adoption of EU Regulation (EC) No 
1889/2005 of 
October 26, 2005.  When this regulation enters into force, fines 
will be 
assessed either for failing to declare, or illegally declaring cash. 
 At the 
present time, the Estonian Tax and Customs Board (TCB) controls the 
external 
borders of the EU at the border with Russia and at the Tallinn 
Airport.  All 
main border crossing points are controlled 24 hours a day. 
According to Mr. Ora 
at MFA, TCB staff at the border crossing points "...have been 
trained to uncover 
illegal items from vehicles, goods, passengers and their luggage." 
The TCB also 
employs a computer-based operational risk analysis system, assessing 
passengers 
crossing the borders.  The border crossing points are supplied with 
detection 
technology such as x-ray machines, endoscopes and video surveillance 
to uncover 
illegal items.  TCB expects an automatic number plate detection 
system to come 
on line in the near future. 
 
¶4.  (U) Additionally, starting in May 2007, all private banks in 
Estonia will 
voluntarily adopt a security measure which mandates the use of an 
electronic ID 
card, or a PIN-password calculator, for wire transfers of cash 
cumulatively 
totaling over EEK 10,000 (USD 820) per day.  Currently, each bank 
can set its 
own limits.  Although Estonia's Citizenship and Immigration Board 
has issued 
over a million national ID cards, estimates are that only about 
40,000 people in 
the country regularly use them for electronic transactions.  The 
rest use them 
only for identification and travel within the EU. 
 
¶5.  (U) The main agencies responsible for monitoring terrorist 
finance issues 
are the Financial Intelligence Unit of the Central Criminal Police, 
and the 
Customs Control Department of the Tax and Customs Board. 
Additionally, the 
Security Police Board is involved in terrorism-related matters. 
 
GOLDSTEIN