US embassy cable - 05MANAMA237

C O N F I D E N T I A L MANAMA 000237 
 
SIPDIS 
 
STATE FOR NEA/ARPI DBERNS 
STATE PASS USTR JBUNTIN 
 
E.O. 12958: DECL: 02/19/2015 
TAGS: ECON, EFIN, ECPS, ETTC, BA 
SUBJECT: BMA GOVERNOR ON FINANCE AND TELECOMS 
 
Classified By: Ambassador William T. Monroe for reasons 
1.4 (b) and (d). 
 
1.  (C)  In an introductory call February 9, the Ambassador 
congratulated former Batelco chairman Rasheed Mohammed Al 
Maraj on his appointment as governor of the Bahrain Monetary 
Agency, Bahrain's central bank.  In response to the 
Ambassador's comment on Bahrain's leading role in the Middle 
East and North Africa Financial Action Task Force (MENA 
FATF), Al Maraj said the GOB is committed to complying with 
all rules and disclosing all information related to combating 
money laundering and terrorism financing  He wants to work 
closely with the USG on these issues.  (NOTE.  The Middle 
East and North Africa states established a FATF in November 
2004, headquartered in Manama, to combat money laundering and 
terrorism financing.  END NOTE).  Al Maraj stated that the 
BMA coordinates with the U.S. Federal Reserve Board on 
regulatory matters and training, and will host Fed officials 
at the end of February for a regional seminar for bank 
supervisors. 
 
2.  (C)  Al Maraj spoke at length about telecommunications 
regulation from his perspective as former chairman of 
Batelco, Bahrain's national telecommunications company.  He 
agreed with the Ambassador on the importance of corporate 
governance and the need to increase transparency.  Regulating 
the telecom industry is the first step in regulating all 
public utilities.  Al Maraj said deregulation in the telecom 
sector has proven to be a big success and has spurred 30 
percent growth despite initial fears that deregulating 
Bahrain's small market would cause turmoil in the marketplace. 
 
MONROE