US embassy cable - 04ABUDHABI1901

UNCLAS ABU DHABI 001901 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR NEA, NEA/ARP FOR HEFFERNAN, NEA/RA FOR SUTPHIN 
EB/ESC/ESP, INL/C, INL/ENT, S/CT FOR REALUYO 
TREASURY FOR ENFORCEMENT FOR JUAN ZARATE 
TREASURY PASS FINCEN FOR FOX, OCC FOR BLACKER, OFAC FOR 
NEWCOMB 
JUSTICE FOR ASSET FOREFEITURE AND ML UNIT - DAVITT, 
GREENBERG 
JUSTICE PASS OPDAT FOR SILVERWOOD 
 
E.O. 12958: N/A 
TAGS: EFIN, ETTC, PREL, PTER, PGOV, TC 
SUBJECT: UAE CENTRAL BANK AND FINCEN CO-HOST AML TRAINING 
FOR SOUTH ASIAN COUNTRIES 
 
1.  (U) SUMMARY: THE UAE CENTRAL BANK'S ANTI-MONEY 
LAUNDERING AND SUSPICIOUS CASES UNIT (AMLSCU) AND FINCEN CO- 
HOSTED ANTI-MONEY LAUNDERING (AML) TRAINING FOR SOUTH ASIAN 
COUNTRIES, JUNE 5-7 IN ABU DHABI.  FIFTEEN CENTRAL BANK AND 
MINISTRY OF FINANCE OFFICIALS FROM AFGHANISTAN, PAKISTAN, 
BANGLADESH, SRI LANKA, AND THE MALDIVES ATTENDED, AS WELL AS 
THE ECONOMIC OFFICER FROM THE REPUBLIC OF INDIA'S EMBASSY IN 
ABU DHABI.  THESE COUNTRIES HAVE EITHER NONEXISTENT OR 
NASCENT AML REGIMES, AND THE SEMINAR PROVIDED NUTS AND BOLTS 
INSTRUCTIONS ON HOW TO BUILD A FINANCIAL INTELLIGENCE UNIT 
(FIU).  END SUMMARY. 
 
2.  (SBU) IN ADDITION TO PRESENTATIONS BY THE AMLSCU AND 
FINCEN, SPEAKERS FROM THE DEPARTMENT, FDIC, DOJ AND ACADEMIA 
PARTICIPATED IN THE EVENT AND DISCUSSED INTERNATIONAL AML 
STANDARDS, THE PIVOTAL ROLE OF A FIU IN AN ANTI-MONEY 
LAUNDERING REGIME, FIU INTERFACE WITH LAW ENFORCEMENT AND 
REGULATORS, SUSPICIOUS ACTIVITY REPORTING, BANK COMPLIANCE 
ISSUES, INFORMATION TECHNOLOGY, AND HAWALA.  THE 
PRESENTATION ON HAWALA SPARKED A PARTICULARLY LIVELY DEBATE 
AMONG THE PARTICIPANTS ABOUT CURRENCY CONTROLS AND THE 
LEGALITY OF INFORMAL MONEY TRANSFERS.  ALL PARTICIPANTS 
COMMENDED THE UAE CENTRAL BANK FOR ITS EFFORTS TO REGISTER 
AND MONITOR HAWALADARS. 
 
3.  (SBU) THE SOUTH ASIAN OFFICIALS ALSO DESCRIBED THEIR 
RESPECTIVE ANTI-MONEY LAUNDERING REGIMES AND INITIAL STEPS 
TO CREATE A FIU.  INTERESTINGLY, THE FINANCIAL SECTORS AND 
BANKING REGULATIONS VARY WIDELY FROM COUNTRY TO COUNTRY. 
THE AFGHAN REPS WERE VERY KEEN TO LEARN MORE ABOUT THE UAE'S 
HAWALA REGISTRATION PROGRAM, AND CLAIMED THAT HAWALA IS THE 
"NORM" FOR TRANSFERRING MONEY IN AFGHANISTAN.  THE PAKISTANI 
DELEGATION EXPLAINED THAT ITS `KNOW YOUR CUSTOMER' (KYC) 
REGULATIONS REQUIRE THAT A LONG-TIME ACCOUNT HOLDER, OR 
"INTRODUCER," SPONSOR A NEW CUSTOMER WHO WANTS TO OPEN A 
BANK ACCOUNT.  THIS SYSTEM WORKS WELL IN A PAKISTAN, WHERE 
MANY PEOPLE DO NOT HAVE OFFICIAL DOCUMENTS VERIFYING THEIR 
IDENTITY.  IN ADDITION, THE REPRESENTATIVE FROM THE MALDIVES 
PUT INTO PERSPECTIVE THE SIZE OF THE MALDIVIAN FINANCIAL 
SECTOR AND NOTED THAT TOURISM ACCOUNTS FOR NEARLY 35 PERCENT 
OF THE COUNTRY'S GDP. 
 
4.  (SBU) COMMENT: THIS WAS THE FIRST TIME THAT OFFICIALS 
FROM SOUTH ASIA HAVE COME TOGETHER FOR AML TRAINING BY 
FINCEN.  THE SESSION LAID THE GROUNDWORK FOR SUBSEQUENT 
REGIONAL COOPERATION.  THE SEMINAR ALSO PROVIDED AN 
OPPORTUNITY FOR THE UAE CENTRAL BANK TO SHOWCASE ITS OWN 
ACHIEVEMENTS IN COMBATING MONEY LAUNDERING AND TERRORIST 
FINANCING.  UAE CENTRAL BANK GOVERNOR SULTAN BIN NASSER AL- 
SUWEIDI NOTED IN HIS OPENING REMARKS THAT THIS TRAINING WAS 
THE 75TH AML TRAINING PROGRAM AT THE UAE CENTRAL BANK SINCE 
9/11, AND PRIVATELY ASKED ECONCHIEF ABOUT THE FEASIBILITY OF 
CO-SPONSORING WITH FINCEN SIMILAR PROGRAMS FOR ARAB STATES, 
INCLUDING THE ARAB LEAGUE AND SEPARATELY, THE GCC.  END 
COMMENT. 
 
WAHBA