VZCZCXRO7916
PP RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV
DE RUEHTC #0345 0541550
ZNR UUUUU ZZH
P 231550Z FEB 07
FM AMEMBASSY THE HAGUE
TO RUEHC/SECSTATE WASHDC PRIORITY 8298
INFO RUEHTRO/AMEMBASSY TRIPOLI PRIORITY
RUEHAT/AMCONSUL AMSTERDAM PRIORITY 2328
RUEHFT/AMCONSUL FRANKFURT PRIORITY 3647
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUEHBS/USEU BRUSSELS PRIORITY 0442
RHEHNSC/NSC WASHDC PRIORITY
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC PRIORITY
RHMFIUU/FBI WASHDC PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS THE HAGUE 000345 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EB/ESC/TFS (KLEAHY), EB/ESC/TFS (LCANON) 
STATE ALSO FOR S/CT (PHILL), S/CT FINANCE (GALER, NOVIS) 
STATE ALSO FOR EUR/UBI (RREITER), EUR/PGI, EUR/ERA (PWALKER) 
TREASURY FOR TFFC AND OFAC 
 
E.O. 12958: N/A 
TAGS: EFIN ETTC KTFN LE PREL PTER KCRM NL
SUBJECT: TERRORIST FINANCE: DUTCH ON ILLICIT CASH COURIERS 
 
REF: STATE 16120 
 
C O R R E C T E D COPY (ADDING EU MEMBER STATES) 
 
THIS MESSAGE IS SENSITIVE BUT UNCLASSIFIED. PLEASE HANDLE 
ACCORDINGLY. 
 
¶1. (SBU) The Dutch Ministry of Finance (MOF) is hopeful that 
a soon to be implemented EU regulation will help detect and 
prosecute bulk cash smugglers. In a February 22 conversation, 
MOF official Paul ten Westeneind, Policy Officer, Integrity 
Division, told Econoff that the environment for combating 
bulk cash smuggling in the Netherlands is improving. This, he 
said, is due primarily to a new regulation -- to be effective 
in a couple months -- implementing EU Regulation 1889/2005 on 
controls of cash entering or leaving the European Community. 
Under this regulation, all travelers exiting the EU must 
report cash in excess of 10,0000 euros or face criminal 
charges. Previously, travelers found with bulk cash by the 
Royal Netherlands Marechaussee (KMAR, a military police force 
responsible for border control) had to provide good 
justification or be suspected of money laundering, ten 
Westeneind said, but there was no reporting requirement or 
criminal penalties. 1889/2005 therefore addressed a "gap" 
that cash couriers were exploiting. He predicted that 
implementation of the regulation would generate increased 
awareness of the issue within the government and amongst the 
public. 
 
¶2. (SBU) Ten Westeneind noted that enforcement could be the 
primary weakness of the new regulation. With only a minority 
of travelers being checked, or "sniffed," it would be 
impossible to catch everything, he said. For example,  the 
regulation did not address illegal cash mailings through the 
post. 
 
¶3. (SBU) Regarding transatlantic information sharing, ten 
Westeneind said the Dutch Financial Intelligence Unit works 
regularly with the USG, and that there were frameworks in 
place to govern information exchanges. 
BLAKEMAN