Identifier
Created
Classification
Origin
03ABUDHABI1904
2003-04-21 12:33:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:
UAE MEASURES TO MONITOR OUTBOUND FINANCIAL
how-tonull Diana T Fritz 05/24/2007 04:28:21 PM From DB/Inbox: Search Results Cable Text: CONFIDENTIAL SIPDIS TELEGRAM April 21, 2003 To: No Action Addressee Action: Unknown From: AMEMBASSY ABU DHABI (ABU DHABI 1904 - UNKNOWN) TAGS: EFIN, PTER, ETTC, ECON Captions: None Subject: UAE MEASURES TO MONITOR OUTBOUND FINANCIAL TRANSFERS BY CHARITIES Ref: None _________________________________________________________________ C O N F I D E N T I A L ABU DHABI 01904 SIPDIS Laser1: INFO: FCS CXABU: ACTION: ECON INFO: P/M AMB DCM POL DISSEMINATION: ECON CHARGE: PROG APPROVED: AMB:MMWAHBA DRAFTED: ECON:TEWILLIAMS CLEARED: DCM:RAALBRIGHT VZCZCADI688 OO RUEHC RUEHZM RUEATRS DE RUEHAD #1904 1111233 ZNY CCCCC ZZH O 211233Z APR 03 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC IMMEDIATE 9516 INFO RUEHZM/GCC COLLECTIVE PRIORITY RUEATRS/TREASURY DEPT WASHDC
C O N F I D E N T I A L ABU DHABI 001904
SIPDIS
STATE FOR EB, NEA/ARP - JONES AND HEFFERNAN, NEA/RA
-PSUTPHIN, EB/ESC/ESP -GGLASS, S/CT - CBLACK AND
FOX, AND IO/PHO -APEREZ
TREASURY FOR OGC - DAUFHAUSER, DAS FOR TERRORISM
AND VIOLENT CRIMES (JZARATE),AND TERRORIST
FINANCING TASK FORCE
TREASURY PASS OFAC FOR NEWCOMB
E.O. 12958: DECL: 04/21/13
TAGS: EFIN PTER ETTC ECON TC
SUBJECT: UAE MEASURES TO MONITOR OUTBOUND FINANCIAL
TRANSFERS BY CHARITIES
C O N F I D E N T I A L ABU DHABI 001904
SIPDIS
STATE FOR EB, NEA/ARP - JONES AND HEFFERNAN, NEA/RA
-PSUTPHIN, EB/ESC/ESP -GGLASS, S/CT - CBLACK AND
FOX, AND IO/PHO -APEREZ
TREASURY FOR OGC - DAUFHAUSER, DAS FOR TERRORISM
AND VIOLENT CRIMES (JZARATE),AND TERRORIST
FINANCING TASK FORCE
TREASURY PASS OFAC FOR NEWCOMB
E.O. 12958: DECL: 04/21/13
TAGS: EFIN PTER ETTC ECON TC
SUBJECT: UAE MEASURES TO MONITOR OUTBOUND FINANCIAL
TRANSFERS BY CHARITIES
1. (U) CLASSIFIED BY DCM RICHARD A. ALBRIGHT FOR
REASONS 1.5 (B,D).
2. (C) DCM called 4/21 on UAE Minister of Labor
and Social Affairs Matar Al-Tayer to discuss
oversight of charities (other topics septel). Al-
Tayer confirmed that subsequent to discussions last
year with Treasury Enforcement DAS Zarate (reftel),
the UAE had mandated that all licensed charities
here interested in transferring funds overseas must
do so via one of three umbrella organizations: The
Red Crescent Authority, the Zayed Charitable
Foundation, or the Muhammad Bin Rashid Charitable
Trust. These three quasi-governmental bodies were
properly managed, Al-Tayer observed, and in a
position to ensure that overseas financial
transfers went to legitimate parties. As an
additional step, the UAEG had contacted the
governments in numerous aid receiving countries to
compile a list of recognized, acceptable recipients
for UAE charitable assistance. Al-Tayer added that
these transfers all take place via banks. The
Minister noted that, in keeping with the times, UAE
charities are now much more sensitive to the need
to ensure adequate accountability; the days of aid
veing delivered via suitcases full of cash are
"well and truly over."
3. (C) Auditing the books of charities -- a key
desire of the government -- is still a work in
progress, the Minister noted. The UAEG had
originally proposed last year that all charities
hire independent outside auditors and submit to the
Ministry certified annual reports on their
financial activities. But questions had then been
raised as to who would pay for these audits,
whether the charities could use zakat (required
religious tithes) for this purpose, etc. The
government, as a compromise measure, had then
suggested that charities submit their books to the
state auditing authorities, but the state auditors
themselves had rejected this idea citing overwork
and an inability to conduct spot audits. The
government was now considering funding private
audits of charities -- to include possible
governmental spot-checks -- and expected to have
this matter resolved shortly.
4. (C) COMMENT: As the foregoing makes clear,
the UAEG is fully aware of the importance of
ensuring adequate oversight of outbound financial
transfers by charities. The current requirement to
funnel funds through well-run, quasi-governmental
umbrella organizations is a prudent temporary
measure, but the best long-term solution is to
establish formal audit requirements -- something
that should transpire later this year.
Wahba
SIPDIS
STATE FOR EB, NEA/ARP - JONES AND HEFFERNAN, NEA/RA
-PSUTPHIN, EB/ESC/ESP -GGLASS, S/CT - CBLACK AND
FOX, AND IO/PHO -APEREZ
TREASURY FOR OGC - DAUFHAUSER, DAS FOR TERRORISM
AND VIOLENT CRIMES (JZARATE),AND TERRORIST
FINANCING TASK FORCE
TREASURY PASS OFAC FOR NEWCOMB
E.O. 12958: DECL: 04/21/13
TAGS: EFIN PTER ETTC ECON TC
SUBJECT: UAE MEASURES TO MONITOR OUTBOUND FINANCIAL
TRANSFERS BY CHARITIES
1. (U) CLASSIFIED BY DCM RICHARD A. ALBRIGHT FOR
REASONS 1.5 (B,D).
2. (C) DCM called 4/21 on UAE Minister of Labor
and Social Affairs Matar Al-Tayer to discuss
oversight of charities (other topics septel). Al-
Tayer confirmed that subsequent to discussions last
year with Treasury Enforcement DAS Zarate (reftel),
the UAE had mandated that all licensed charities
here interested in transferring funds overseas must
do so via one of three umbrella organizations: The
Red Crescent Authority, the Zayed Charitable
Foundation, or the Muhammad Bin Rashid Charitable
Trust. These three quasi-governmental bodies were
properly managed, Al-Tayer observed, and in a
position to ensure that overseas financial
transfers went to legitimate parties. As an
additional step, the UAEG had contacted the
governments in numerous aid receiving countries to
compile a list of recognized, acceptable recipients
for UAE charitable assistance. Al-Tayer added that
these transfers all take place via banks. The
Minister noted that, in keeping with the times, UAE
charities are now much more sensitive to the need
to ensure adequate accountability; the days of aid
veing delivered via suitcases full of cash are
"well and truly over."
3. (C) Auditing the books of charities -- a key
desire of the government -- is still a work in
progress, the Minister noted. The UAEG had
originally proposed last year that all charities
hire independent outside auditors and submit to the
Ministry certified annual reports on their
financial activities. But questions had then been
raised as to who would pay for these audits,
whether the charities could use zakat (required
religious tithes) for this purpose, etc. The
government, as a compromise measure, had then
suggested that charities submit their books to the
state auditing authorities, but the state auditors
themselves had rejected this idea citing overwork
and an inability to conduct spot audits. The
government was now considering funding private
audits of charities -- to include possible
governmental spot-checks -- and expected to have
this matter resolved shortly.
4. (C) COMMENT: As the foregoing makes clear,
the UAEG is fully aware of the importance of
ensuring adequate oversight of outbound financial
transfers by charities. The current requirement to
funnel funds through well-run, quasi-governmental
umbrella organizations is a prudent temporary
measure, but the best long-term solution is to
establish formal audit requirements -- something
that should transpire later this year.
Wahba