UAE CENTRAL BANK AND FINCEN CO-HOST AML TRAINING

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