US embassy cable - 04NEWDELHI7291

UNCLAS NEW DELHI 007291 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SA/INS, EB/TPP, AND INL/AAE 
TREASURY FOR MIDDLE EAST AND SOUTH ASIA 
STATE PASS TO FINCEN FOR MARYJO MELANCON 
 
E.O. 12958: N/A 
TAGS: ETTC, EFIN, PTER, KSEP, KTFN, SNAR, PREL, IN, KWPR, GOI 
SUBJECT: TERRORIST FINANCING: INDIA'S CABINET OKAYS 
FINANCIAL INTELLIGENCE UNIT 
 
REF: STATE 241413 
 
1.  (U) India's Cabinet on November 11 gave its approval to 
establish a Financial Intelligence Unit (FIU), the last 
formal hurdle for setting up this long-delayed office. 
Several years have elapsed as the GOI sorted out the 
intramural wrangling over the unit's composition and 
responsibilities.  Last May's national election, which 
brought the Congress Party into power, was the most recent 
delay as the new Cabinet has spent its first six months in 
office contending with a host of pressing issues. 
 
2. (U) The FIU will be organized as an independent body 
within the Finance Ministry's Central Economic Intelligence 
Bureau (CEIB), located in New Delhi.  The press reports that 
the FIU will have an intelligence and an investigative wing. 
 
3.  (SBU) Sharmila Chavaly, our Finance Ministry contact for 
anti-terrorist financing, told us today that the next step 
"is to identify the people," who will serve in the FIU, and 
hoped that the new director would be named "in the next week 
or so."  Chavaly looked forward to pinning down a convenient 
date for a visit to New Delhi by representatives of the 
Treasury Department's Financial Crimes Enforcement Network 
(FinCEN). 
 
Comment 
------- 
 
4.  (SBU) India has long signaled its desire to boost 
bilateral cooperation with the US on anti-terrorist 
financing as well as in multi-lateral forums.  However, its 
membership in the Paris-based Financial Action Task Force 
has been pending, with the lack of an FIU as one of several 
hurdles that need to cleared (reftel).  Even though the FIU 
is not yet up and running, the Embassy will move forward 
with plans for an exchange visit with FinCEN.  Blake