Executive Summary by 9Jba6rwx


									                             24th Counter-Terrorism Task Force Meeting
                                   Big Sky, Montana, United States
                                           May 11-12, 2011

                                         Executive Summary

The 24th meeting of the APEC Counter-Terrorism Task Force (CTTF) was held in Big Sky, Montana,
United States, on May 11-12, 2011.

CTTF-2 featured policy dialogues on border security and counter-terrorist financing. The dialogue on
border security and management included participation by representatives of the APEC Subcommittee on
Customs Procedures (SCCP), the APEC Business Mobility Group (BMG), and the UN Counter-Terrorism
Executive Directorate (CTED). The presentations and subsequent discussion highlighted the benefits of
risk management tools, the importance of information sharing and cross-border coordination, the
usefulness of evaluating the impact of APEC’s capacity building work, and the need for a better
understanding of ‘on-the-ground’ implementation of capacity building initiatives.

The second dialogue on counter-terrorist financing featured presentations from CTED, the United States
and Australia. Discussion focused on the emerging threat of trade-based money laundering and
mechanisms for addressing gaps in anti-money laundering (AML) and counter-terrorist financing (CTF),
including the need for capacity building projects to address specific needs of APEC member economies,
and the importance of finding a balance between traditional workshops with other approaches such as
mentoring and pilot projects, and more focused, longer-term capacity building initiatives.

These two sessions were intended in part to inform the development of the Consolidated APEC Strategy
on Counter-terrorism and Secure-Trade. CTTF members discussed a draft framework for the Strategy
and agreed to provide the Chair with input by June 15. The first draft of the Strategy, based on input
received on the draft framework, will be circulated to CTTF members in July.

CTTF members also reviewed the implementation of the CTTF workplan, discussing the status and
outcomes of completed and planned projects. These included a series of Australian-led counter-terrorist
financing capacity building workshops; the Korean-led 3rd APEC Seminar on the Protection of
Cyberspace planned for September 7-8; the U.S.-led Secure Trade in the APEC Region (STAR)
conference also planned for September; the U.S. self-funded workshop on the misuse of Non-Profit
Organizations (NPO); a regional food defense workshop slated for Fall 2011; and a U.S.-led aviation
security canine screening workshop planned for June 9-10 in Canberra, Australia. In addition, CTTF
members endorsed the U.S.-proposed food defense follow-on project for the Philippines and Vietnam,
and Canada’s proposal for a major event security workshop in September.

The Chair requested that APEC members submit their completed Counterterrorism Action Plans (CTAPs)
to the Secretariat prior to CTTF-3 in September.

The next CTTF meeting will be held in San Francisco, California, USA, in September 2011.

                                            Summary Report

The 24th meeting of the APEC Counter-Terrorism Task Force (CTTF) was held in Big Sky, Montana,
United States, on May 11-12, 2011. Over 43 participants from 17 member economies attended, in
addition to chairs from other APEC sub-fora and a representative from CTED. The meeting was chaired
by CTTF Chair Anne Witkowsky, of the United States.


The Chair opened the meeting by welcoming the Russian CTTF vice-chair and APEC members to the
second CTTF meeting of her chairmanship. The Chair remarked that the international community is at a
critical juncture in its collective counterterrorism efforts. While questions remain about the long-term
impact of Usama bin Laden’s death, terrorist groups continue to plot attacks to harm innocent lives and
livelihoods in the APEC region. The Chair suggested that APEC members take this opportunity to bolster
partnerships, strengthen networks and capabilities, and protect economic systems against attack,
disruption, and misuse. She also noted that APEC has a unique role in this collective effort to fight
terrorism and secure trade, and that the CTTF is well placed to work at the nexus between economic
vitality and security. In particular, the CTTF’s efforts to coordinate the consolidated APEC Strategy on
Counter-terrorism and Secure Trade will build on APEC’s previous and current work in these areas and
help ensure that we are bringing maximum value to our work in the future.

The APEC Secretariat reviewed work that the CTTF had undertaken intersessionally since its last
meeting in Washington, D.C. in March 2011, as well as ongoing tasks from the previous meeting. This
included the preparation of an activity matrix for CTTF and other relevant subfora projects dating back to
2002; the approval of the 2011 CTAP template, the approval of the 2011 CTTF workplan; and the
approval of the draft summary report for CTTF-1. The proposals for STAR VIII, a U.S. self-funded NPO
workshop and Korea’s cyber seminar also received intersessional approval.


The dialogue featured presentations by APEC Subcommittee on Customs Procedures (SCCP) Chair
Brendan O’Hearn, APEC Business Mobility Group (BMG) Acting Convener Jim Williams, and Hassan
Baage from the UN Counter-Terrorism Executive Directorate (CTED). Discussion focused on trends and
challenges in border management and helped to identify potential areas of cooperation across APEC and
between APEC and other multilateral organizations.

Key themes that were discussed include the use of risk management; the importance of information
sharing; interagency and cross-border coordination; the usefulness of evaluating the impact of APEC’s
capacity building work; and the need for a better understanding of on-the-ground implementation of
border management strategies.

Mr. Baage outlined CTED’s role in international border security and management, which includes
reviewing UN Member State implementation of UN Security Council Resolution 1373. This ongoing
review helps facilitate technical assistance and has revealed that effective border management requires
risk assessment and related mitigation measures, which include a full range of systems, procedures, and
technical capabilities that operate at border crossings. According to CTED, key international border
vulnerabilities remain. Regarding the movement of people, Mr. Baage highlighted the need for more
robust traveler identity verification. These efforts include broadening the use of machine-readable travel
documents, ensuring that those documents and their manufacturing processes are secure, better
leveraging information collected from advance passenger information systems, and sharing information
with national and international criminal databases for screening purposes. While member states have
made progress on reducing vulnerabilities in the movement of cargo, with 164 states indicating their

  The member economies present at the meeting included Australia, Brunei Darussalam, Canada, Chile,
Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, Peru, The Philippines, Russia, Singapore,
Chinese Taipei, Thailand, The United States, and Viet Nam.

intention to implement the WCO SAFE Framework of Standards, work remains on promoting the use of
pre-arrival information, implementing risk assessment systems, and fostering partnerships between
customs officials and private sector stakeholders. Mr. Baage emphasized that border security can be
improved through stronger interagency coordination, improved information exchange at and across
borders, the use of common information technology systems, and the conduct of more efficient risk
management. Mr. Baage closed by adding that evaluations on the impact of capacity building or training
in general would be beneficial to ensure that policy measures are implemented appropriately.

Mr. Williams overviewed BMG’s development of the APEC Business Travel Card and an ‘APEC best
practice border capabilities model.’ The model, intended to help economies share and learn best
practices in border security and management, will be developed in two stages. The first will feature the
traveler pathway, covering the processes travelers go through to move from one place to another (e.g.,
booking tickets, checking in, and the processes involved with clearing customs when arriving at the next
economy). The second will identify ways of ensuring economies can meet their objectives along the
pathway, such as verifying identities or the validity of travel documents. Work on the model has
demonstrated a need for clear and unified terminology in the field, and highlighted the fact that for a
single problem, there may be several equally valid interventions.

Mr. O’Hearn reported on SCCP’s work related to Authorized Economic Operator (AEO) programs, trade
resumption, and pharmaceuticals in the express air environment. The SCCP has been studying these
issues through the lens of risk management, trade resilience, and global supply chain security. One of
the SCCP’s risk management-related goals is enabling customs officials to separate trusted traders from
the general pool of traders, thereby reducing the size of the group requiring scrutiny by those officials.
The purpose of trade resilience is to facilitate the resumption of trade after a disruptive event. SCCP is
working on an AEO Action Plan to allow for the mutual recognition of such programs across the APEC
region. As part of the first phase, the working group is preparing a compendium of AEO programs. The
second phase will cover best practices, and the third phase will involve capacity building. More generally,
the SCCP continues to seek opportunities for cross-fora cooperation in APEC and recommends
developing mechanisms for intersessional cooperation with the APEC Business Advisory Council (ABAC).

Russia delivered remarks on border security issues it has studied in the context of its customs union with
Belarus and Kazakhstan. Russia noted that addressing issues such as illegal migration and smuggling
require a new level of cooperation between border authorities of customs union members. Approaches
for dealing with these issues range from standardization of border-related legislation to unified border
management. Russia also recommended inviting other organizations to future APEC meetings such as
ICAO, WCO and regional organizations like ASEAN and the Shanghai Cooperation Organization to share
their efforts on border security.

Singapore noted that domestically, it has enacted the UN Act, a legislation that helps to fast track the
implementation of UN Security Council Resolutions. In addition, it is also an active participant in the
Proliferation Security Initiative (PSI) and conducts comprehensive checks on cargo and goods. As an
open economy that welcomed businessmen and tourists alike, Singapore would also be interested in
learning from other economies about procedures and technologies that would enable enhanced border
security while not unduly hampering the flow of people and goods.

Canada inquired about the role CTTF could play in identifying capacity building areas in border security.
Mr. O’Hearn responded that APEC Senior Officials and CTTF can build the political will necessary to drive
engagement in relevant activities such as developing a border capabilities model. Mr. Williams noted that
CTTF could enhance the BMG’s efforts by identifying which risks are the greatest. The United States
suggested that CTTF could facilitate discussions between stakeholder groups, such as public and private
sector representatives, which is one of the goals of the upcoming STAR conference, and help identify
how APEC is addressing the key trade themes including security, efficiency, and resilience.

The Chair noted that APEC-funded projects have an evaluation mechanism in place which can help
identify the impact of projects. However, CTTF could usefully discuss this issue further given the

discussion outlining the need to better understand the effectiveness of border security and management
capabilities and the implementation “on the ground” in member economies.


The Chair reported that two additional ministerial commitments were added to the Counter-Terrorism
Action Plan (CTAP) template. The template’s question on capacity building was also revised to clearly
identify the CTAP point of contact information and to distinguish between the capacity building capabilities
and capacity building requirements of each member economy. The Chair requested that APEC members
submit their completed CTAPs to the Secretariat prior to CTTF-3 in September. The Philippines and
Thailand stated their economies are working to complete the CTAP template.

New Zealand reported that it held a counterterrorism exercise on May 3-4 related to the Rugby World Cup
to test individual and collective responses to terrorist events. New Zealand has also funded a UNODC
project to strengthen counterterrorism legal frameworks in the Pacific region. This project is entering its
final phase and will be completed this year. New Zealand added that even though Osama bin Laden’s
death is a significant moral blow to al Qaeda, his death does not represent an end to the threat of
terrorism, and New Zealand will continue to play a role in international counterterrorism efforts.

Vietnam stated that it had issued a decree on civil aviation security; adopted a national plan on anti-
money laundering and counter-terrorist financing; and ratified the ASEAN Counterterrorism Convention.

Chinese Taipei reported that it has made efforts in several counterterrorism-related fields by adopting a
community regime for export of dual-use items, deploying hazmat scanners to several ports, and working
to develop a 24/7 Interpol-connected communication system on lost and stolen travel documents.

Indonesia reported that it has established a national agency for counterterrorism. The agency’s roles
include formulating policy on counterterrorism and coordinating government implementation of CT policy.


Secure Trade in the APEC Region
The United States provided an update on the implementation of the 8 Secure Trade in the APEC Region
(STAR VIII) conference. The United States hopes to structure the conference to promote discussion and
engagement with private sector representatives. Canada noted the importance of achieving concrete
results and building linkages between the public and private sector. Australia noted the importance of
assigning qualified facilitators for the breakout sessions. Chile recommended evaluating past STAR
efforts to ensure that APEC will effectively follow through on implementing ideas from past STAR

Counter-Terrorist Financing

Australia discussed the implementation of a self-funded joint CTTF and Anti-Corruption Task Force
project, "Combating Corruption and Anti-Money Laundering," which was endorsed intersessionally. As
part of this effort, Australia conducted the first in-country workshop in Thailand in March 2011. An in-
country workshop in the Philippines will be held May 17-19, 2011, after which Australia will develop the
next round of in-country workshops.

The United States updated members on the implementation of its self-funded workshop on the misuse of
Non-Profit Organizations (NPOs) for terrorist financing, which was endorsed intersessionally and is
planned tentatively this fall in Southeast Asia. The United States will provide further updates to members
intersessionally as more details become available.

Russia recommended that this issue be further discussed in CTTF and expressed support for the U.S.
workshop, adding that the project aligns well with the Financial Action Task Force (FATF) Special
Recommendation VIII.

Transportation Security

The United States provided an informational presentation on a concept for a joint APEC Transportation
Working Group (TPTWG) /CTTF/International Working Group on Land Transport Security (IWGLTS) Bus
Anti-Terrorism Workshop, which would be hosted in the Philippines in 2012. The proposal will be
reviewed by the Transportation Working Group (TPTWG) at its June meeting in Australia and would be
presented to CTTF for intersessional endorsement thereafter. The workshop is designed to share best-
practices on bus security and facilitate capacity building between economies, and will include private
sector and local government representatives.

Russia, Canada, and Korea expressed support for the initiative and a broad focus on all modes of land
transportation. The Philippines recommended focusing on practical exercises and including the
Emergency Preparedness Working Group.

The United States updated members on the implementation of the joint TPTWG -CTTF Aviation Security
Canine Screening Workshop, to be held June 9-10 in Canberra, Australia. Singapore is co-sponsoring
the workshop. The United States will report on its outcomes at CTTF-3.

Food Defense

The United States updated members on the implementation of the Food Defense Pilot Projects in the
Philippines and Vietnam earlier this year. The United States also noted that the food defense regional
workshop is planned to be held in Southeast Asia in the autumn of 2011. The United States will circulate
additional details as they become available. Vietnam and the Philippines voiced their support for the
activities, noting the beneficial awareness-raising and lessons-learned sharing fostered by the pilot
projects. Additionally, a proposal for follow-on capacity building training for the Philippines and Vietnam
was endorsed by the CTTF.

Major Event Security

Canada updated members on the implementation of its self-funded workshop on major event security.
The proposed workshop, which also received the support of the Tourism Working Group, is planned to be
a two-and-a-half day event in September. The first day would feature presentations by APEC officials.
The second day would include a tabletop exercise in which participants would practice steps to minimize
damage and loss of life in response to an incident. The last day would feature a tour of Olympic venues.
The Canadian proposal was endorsed by CTTF.

Korea noted its extensive experience hosting major events such as the G20, APEC, and the World Cup,
and its support to address terrorist threats in that context. New Zealand stated its regret that it would be
unable to participate because the workshop is scheduled for the same time as the Rugby World Cup,
which it is hosting.

Russia expressed support for the proposed workshop and reported on its related activities in preparation
for some major events, describing special measures taken by the Russian Federation. Those measures
include preparing a special legal framework and holding counterterrorism exercises, bringing together
stakeholders such as the Shanghai Cooperation Organization (SCO), the Collective Security Treaty
Organization (CSTO), and the Commonwealth of Independent States (CIS).

Cyber Security

Korea provided an update on implementation of the self-funded joint CTTF –Telecommunications
Working Group’s Security and Prosperity Sub-Group (TEL/SPSG) project "3rd APEC Seminar on
Protection of Cyberspace," which was endorsed intersessionally and will be held September 7-8, 2011.
The project is intended to help economies prepare for potential cyber attacks, especially those targeting
or leveraging emerging technologies such as social networks, mobile devices, and cloud computing.

Russia expressed its support for the seminar and shared its hope that CTTF will continue to host
seminars or other events on the issue. Russia indicated that it is planning to organize an international
information security/cyber security event at Vladivostok on the margins of the APEC Summit in Fall 2012.
The representative welcomed the participation of both CTTF and TEL colleagues at the seminar.

Countering Radicalization and Extremism

Singapore informally introduced a concept for a new self-funded CTTF project and sought comments
from the group to help develop the proposal. The proposed project will focus on the changing face of
terrorism, with particular regard to extremism and self-radicalization. This is in response to a trend of self-
radicalized individuals who are able to obtain information over the Internet on how to build bombs and
conduct attacks on their own. The project would be a two-day program, with the first day examining
extremism and self-radicalization throughout the APEC region and the second day, how different
economies address the issue.

Canada, Indonesia, and the United States asked for more details in writing, including information on how
such a project would fit within APEC’s core economic mission. It would also be useful to take note of and
complement the international organizations' work on radicalization and extremism. Mr Baage suggested
that it would be useful to compare regional approaches undertaken on this issue and learn from the other
countries and regions' experiences. Mr Baage noted that the UN was planning a number of workshops
on deradicalization and it would be useful to explore any possible avenues for collaboration.


CTED reported that the UN Counter-Terrorism Committee is planning an event during the UN’s General
Assembly meetings in September to commemorate the ten-year anniversary of UN Security Council
Resolution 1373. This event may include a review of achievements made around the world over the past
ten years in defending against terrorism. Japan noted its upcoming June 8-10 workshop on aviation
security for ASEAN members and the upcoming ASEAN Regional Forum Counter Terrorism and
Transnational Crime meeting scheduled for May 29-31 in Kuala Lumpur that it is co-hosting with


This dialogue featured expert presentations and discussion on anti-money laundering/counter-terrorist
financing (AML/CTF), including trends and emerging challenges regarding international flows of terrorist
funds, the misuse of legitimate organizations for illicit finance, and cross-cutting collaboration within and
among economies. The guest presenters were Hassan Baage of CTED and Michael Tsang of the U.S.
Department of Homeland Security’s Immigration and Customs Enforcement (DHS/ICE).

The United States began the dialogue with a brief overview of the Financial Action Task Force (FATF)
and FATF-Style Regional Bodies (FSRBs).

Mr. Baage presented on UN tools used to combat money laundering and terrorist financing. Through
UNSCRs 1373 and 1617, UN members are urged to implement the FATF’s “40+9” recommendations on
AML/CTF. Members have made some progress in criminalizing terrorism financing, but key gaps remain
on establishing mechanisms to freeze funds, overseeing alternative remittance systems and NPO funding
streams, and countering cash couriers. More generally, CTED seeks to address inconsistent applications
of legal regimes, inadequate knowledge of applicable laws, and inadequate information sharing between
authorities. CTED is leading a three-year initiative to develop a common understanding of practices to
counter terrorist financing in the NPO sector, as well as organizing a series of workshops to address cash

Mr. Tsang provided an overview of the emerging challenge of Trade-Based Money Laundering (TBML),
including specific TBML schemes used to channel illicitly-acquired funds internationally. Mr. Tsang

highlighted that TBML has become a preferred method of money laundering because it uses the complex
and widespread global trade system, and there are relatively few law enforcement professionals
addressing the problem, many of whom do not work collaboratively within their economies or across
borders. Such a problem necessitates a global cooperative approach, including sharing of trade data, to
detect and tackle TBML. The United States has six trade partners who have established Trade
Transparency Units (TTUs) to share import and export data. These TTUs have helped participating
economies seize or recover millions of dollars worth of goods and lost tax revenue.

Australia offered a summary of APEC’s work on CTF. In October 2008, APEC hosted a workshop in
Jakarta on alternative remittances. In May 2009, APEC hosted a workshop in Bangkok on addressing
misuse of NPOs for terrorist financing. In June of that year, APEC held a workshop to address cash
couriers and bulk cash smuggling. In 2010, APEC organized a meeting in Australia on emerging trends
in money laundering and terrorism financing. Going forward, APEC is continuing to organize workshops
on AML and CTF that promote implementation of FATF recommendations. Australia also recommended
that APEC consider expanding its work beyond workshops and seminars, to include other forms of
collaboration such as work-placement based efforts or adopting actionable learning processes to provide
long term assistance and better use limited resources.

Indonesia and Vietnam voiced support for existing capacity building measures such as workshops and
seminars, and Indonesia added that there must be a balance between national and international needs
when considering capacity building activities. Singapore identified three levels on which to address CTF
and AML issues: regulatory frameworks; surveillance and enforcement of regulations; and international
cooperation, including information sharing. Singapore also noted that APEC’s next step should be to find
a more targeted way of filling gaps in member economies’ capabilities and that the more developed
economies could organize workshops for the developing economies.

Canada recommended that APEC efforts relating to CTF remain within the scope of implementing FATF’s
Special Recommendations. The Canadian representative also suggested that the CTTF Chair brief other
multilateral organizations, such as the Asia Pacific Group at its upcoming meeting in India, on APEC CTF
efforts. To better target gaps, Canada proposed studying the CTAPs this year and analyzing specific
issues such as capacity building needs for CTF.

CTED added that it might be useful if the APEC Secretariat collated information on specific gaps within
individual economies to identify some common issues such as legislative measures. Russia highlighted
the need to discuss CTF further, possibly at CTTF-3, and suggested a future CTTF discussion with
representatives from financial investigation units (FIUs) and FSRBs to better determine needs for
AML/CTF implementation. Chile suggested that involving finance ministers instead of FIUs might prove
to be more effective.

Mr. Tsang further emphasized the need for officials in charge of implementing policies countering TBML
to be properly empowered. He noted that the lack of regulations and laws on TBML in some economies
is a critical gap, and that even those economies that have appropriate measures in place do not always
dedicate the necessary staff to enforce the regulations and laws. Capacity building measures necessary
to address these gaps will require that officials charged with enforcing relevant regulations fully
understand those regulations and their authorities. In order to further ensure long-term success in
countering TBML, Mr. Tsang underlined the need to ensure that the “guys on the ground” have political,
administrative, and technical support.

Given the variety of interventions on the topic of identifying and addressing specific gaps relating to
AML/CTF, the Chair suggested continued discussion intersessionally through a Friends of the-Chair
(FOTC) process. She asked all interested delegations to notify her office if they wished to be part of that


CTTF members reviewed the development of the Consolidated APEC Strategy on Counter-Terrorism and
Secure Trade. The Chair’s office circulated a draft framework to relevant sub-fora leads and CTTF
members prior to CTTF II and anticipates circulating a draft strategy to CTTF in July. This timeframe will
allow for at least one round of review prior to the STAR Conference and CTTF-3. The strategy will then
be finalized intersessionally and forwarded to Senior Officials for approval by the Concluding SOM in

Canada, Chile, Russia, Australia, Indonesia, and New Zealand voiced support for the framework.
Canada proposed that its focus on resilience be broadened to include not only resilient commerce, but
also resilient communities. Chile recommended utilizing the APEC publication that the Philippines’ CTTF
chair drafted in 2006 on APEC counterterrorism efforts to inform the strategy. Russia offered some initial
edits to the document. Russia, Australia, Indonesia, and New Zealand asked for additional time to review
the framework.

The Chair set June 15 as the intersessional deadline for comments on the draft framework.


The Secretariat presented an updated progress report on the Independent Assessor’s recommendations
for CTTF. CTTF members approved the report being sent to the SOM Steering Committee on Economic
and Technical Cooperation (SCE).

Russia reminded the Chair of its recommendation at CTTF-1 for the Chair to brief the UN Counter-
Terrorism Committee (CTC). The APEC Secretariat reviewed the process to obtain approval for this
proposal. CTTF members must first authorize such a briefing. If approval is provided by CTTF members,
the Chair will send a letter to the APEC Executive Director, and with his approval, the letter is forwarded
to SOM. If it is then approved by SOM, the letter proposing a briefing by the CTTF Chair is sent to the UN
CTC. The initial message asking CTTF members for their approval will be circulated intersessionally,
following the conclusion of SOM II.


The Chair thanked all members for their active participation and the Secretariat for its support. The next
CTTF meeting will be in San Francisco in September 2011.


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