Cablegate: Embassy Brasilia Proposal for S/Ct Nadr Project

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RUEHSG/AMEMBASSY SANTIAGO 0785
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RUEHRI/AMCONSUL RIO DE JANEIRO 7039
RUEHSO/AMCONSUL SAO PAULO 3269

C O N F I D E N T I A L SECTION 01 OF 02 BRASILIA 001684

SIPDIS

DEPARTMENT FOR S/CT MARC NORMAN

E.O. 12958: DECL: 12/30/2018
TAGS: PTER ASEC
SUBJECT: EMBASSY BRASILIA PROPOSAL FOR S/CT NADR PROJECT

REF: STATE 128554

Classified By: Charge d'Affairs Lisa Kubiske, Reason 1.4 (b) and (d)

1. (SBU) Per reftel, post welcomes the opportunity to request
funding to address capability shortfalls and information gaps
as Brazil and other countries in South America face mounting
and increasingly complex challenges in combating the myriad
problems related to terrorism financing, money laundering,
drug trafficking, and international organized criminal
activity in the region. While Brazil is making strides in
enhancing its capabilities and legal framework, tackling
these issues effectively requires regionally integrated
approaches.

2. (C) Intelligence data show that terrorist groups such as
Hizballah raise funds not only from the Triborder area of
Argentina, Paraguay, and Brazil, but from sympathetic Shi'a
communities in other parts of South America, such as Chile
and Colombia. Iran is increasingly active in the region,
potentially reaching new sources of funding and support by
sponsoring Islamic Cultural Centers to stoke pro-Iran and
pro-Hizballah feelings among local communities. Pockets of
Islamic extremism in Brazil have not been fully investigated
and could be supporting terrorist activities elsewhere
through criminal enterprises and financing. International
organized criminal networks also pose an increasing threat to
countries in the region. Narco-terrorist guerrillas continue
to expand their international reach and threaten regional
stability as they strengthen their links to local organized
crime networks. For example, once purely-local criminal
groups such as Sao Paulo's First Capital Command (Primeiro
Comando da Capital, PCC) and Rio de Janeiro's Red Command
(Comando Vermelho, CV), are increasing their international
reach and connecting with other regional criminal networks to
purchase drugs and weapons and enhance their capabilities.
Brazilian Federal Judge Odilon de Oliveira has observed that
the FARC has trained members of PCC and CV on kidnapping
techniques. Oliveira also claims that Brazilian
narcotraffickers deal directly with the FARC in purchasing
drugs, bypassing Colombian intermediaries. Also of concern
is PCC,s growing presence in Paraguay. Regional approaches
are necessary to counter the strengthened and increasingly
deadly capabilities fostered by these growing international
linkages.

3. (U) 1. (U) Per ref, Embassy Brasilia requests NADR
anti-terrorism funding for a regional conference in 2009 to
discuss the range of financial crimes that are linked to
terrorist and narco-terrorist organizations in South America.

Title of Embassy Brasilia Proposed Project:

-- 2nd Annual Latin America Threat Finance Conference, August
2009, Rio de Janeiro

Implementing Agency or Organization:

-- Resident Legal Advisor (RLA) for Brazil

Description of Program:

-- The project will build on, institutionalize, and
internationalize a successful August 2008 exchange hosted by
LEGATT Brasilia in Rio de Janeiro which drew about 100
participants from Brazilian law enforcement agencies, along
with a few international participants. The proposed 2009
conference will expand on the 2008 exchange and include at
least 200 prosecutors and judges (from Brazil's money
laundering courts), as well as law enforcement and judicial
officials from the countries of the Southern Cone of South
America.

-- The conference agenda will focus on trends and methods of
terrorism and narco-terrorism financing, financial profiling,
banking and money remittance systems, wire transfers, bulk
cash smuggling, investigative/analytical techniques and
resources, developing task forces, data exploitation.
Experts from the FBI, Treasury, Department of Justice and
other U.S. agencies will conduct some of the training, as
well as presenters from various participating countries,
including Brazilian money-laundering expert Federal judge

BRASILIA 00001684 002 OF 002

Odilon de Oliveira.

Objectives:

-- The conference will facilitate dialogue between U.S.
officials and their Latin American counterparts, build
partner capacity in financial investigative and analytical
techniques, and raise participant countries' awareness of the
value of counter-money laundering and terrorism finance
investigations. Increased valuation of and attention to such
investigations can inhibit criminal and terrorist groups by
denying access to funding, bolster the integrity of
participant countries, financial systems, and improve rule
of law. Increased regional cooperation will hinder
transnational criminal activity and contribute to the overall
security, stability, and prosperity of the region.

Target audience:

-- Intelligence, police and customs officials, prosecutors,
and judges from Brazil, Argentina, Paraguay,
Uruguay, Chile, and Colombia. Although outside the Souther
Cone, including officials from Colombia would usefully expand
the dialogue to effectively discuss FARC illicit financial
activity in the region.

Timeline:

-- August 2009

Embassy point of contact:

-- Karine Moreno-Taxman Resident Legal Advisor
TaxmanKM@state.gov, (55-61) 3312-7125

Alternate points of contact:

-- David Brassanini, LEGATT
BrassaniniDG@state.gov, (55-61) 3312-7303

-- Melissa San Miguel, ECON Officer (Terrorism Finance)
SanMiguelMA@state.gov, (55-61) 3312-7181

-- Javier A. Gonzalez, POL Officer (Counterterrorism)
GonzalezJA@state.gov (55-61) 3312-7509

Costs:

-- Project costs will be determined according to
participation from other countries. Several posts have
already been approached and are supportive of the concept,
including Santiago and Montevideo. This year's conference,
which consisted mainly of Brazilian participants costs
approximately USD 60,000. A minimum of USD 200,000 to
300,000 would be necessary to reach the intended target
audience for next year's conference.

KUBISKE

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