US embassy cable - 04MANAMA1699

UNCLAS MANAMA 001699 
 
SIPDIS 
 
STATE FOR EB/ESC/TFS, S/CT, INL/C, IO/PHO, NEA/ARPI 
TREASURY FOR JZARATE, DGLASER, OFAC 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, ETTC, PREL, PTER, KTFN, BA 
SUBJECT: BAHRAIN TO HOST INAUGURAL MENA FATF MEETING 
 
 
1.  (U) Bahrain will host the inaugural meeting of the Middle 
East/North Africa Financial Action Task Force (MENA FATF) on 
November 29-30.  The establishment of a FATF-styled regional 
body in the Middle East and North Africa is, according to the 
Bahrain Monetary Agency's (BMA) Compliance chief, "an 
important initiative to help bring the region into compliance 
with international standards."  In the wake of September 11 
the international financial community, through FATF, has 
redoubled its efforts to combat money laundering and 
terrorism financing by promoting transparency, best practices 
and sound regulatory regimes. 
 
2.  (U) For the inaugural meeting, Bahrain invited the 
Ministers of Finance and Central Bank Governors from Algeria, 
Qatar, Oman, Kuwait, UAE, Saudi Arabia, Lebanon, Egypt, 
Yemen, Tunisia, Jordan, Morocco and Syria to attend. 
Additionally, Bahrain invited delegations from the US, Iraq, 
France, UK, IMF, World Bank, and FATF as observers.  While 
most of the GCC countries responded affirmatively to their 
invitations, MENA FATF organizers are still awaiting 
responses from Egypt, Tunisia, Algeria, Morocco and Saudi 
Arabia.  (Note. The North African countries attended and were 
active participants in the organizational meeting in Manama 
earlier this year. End note.) 
 
3.  (U) The first day of the conference, November 29, will be 
the technical meeting to draft the MOU, select a president 
and vice president and to discuss other planning issues.  On 
November 30, the conference attendees will sign the MOU and 
hold a press conference to announce the new president and 
vice president of the MENA FATF. 
 
4.  (U) Comment:  The Financial Action Task Force is an 
intergovernmental body that develops and promotes policies to 
combat money laundering and terrorism financing.  FATF 
encouraged the establishment of regional bodies to promote 
self-regulation.  There are already regional bodies in the 
Caribbean, Asia/Pacific, Eastern and Southern Africa, and 
Europe, leaving the Middle East and North Africa as a notable 
exception. The BMA recognized that implementing international 
standards would enhance and protect the stability of 
Bahrain's financial sector.  The BMA actively courted FATF 
and regularly participated in plenary and regional meetings 
before winning approval to initiate and host the MENA FATF. 
Bahrain still has room to improve the regulations in its 
financial sector but expects its strong proactive example to 
serve as a model for the region. 
 
MONROE