Identifier
Created
Classification
Origin
04ABUDHABI4293
2004-11-29 12:57:00
UNCLASSIFIED
Embassy Abu Dhabi
Cable title:  

UAE CENTRAL BANK HOSTS USA PATRIOT ACT SEMINAR

Tags:  EFIN ETTC PTER ECON TC 
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Diana T Fritz 02/05/2007 03:59:54 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
UNCLAS ABU DHABI 04293

SIPDIS
CXABU:
 ACTION: ECON
 INFO: ICE FCS LEGAT P/M AMB DCM POL

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: DCM: RAALBRIGHT
DRAFTED: ECON: OBJOHN
CLEARED: NONE

VZCZCADI845
RR RUEHC RUEHMK RUEATRS
DE RUEHAD #4293 3341257
ZNR UUUUU ZZH
R 291257Z NOV 04
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC 6966
INFO RUEHMK/AMEMBASSY MANAMA 1058
RUEATRS/DEPT OF TREASURY WASH DC
UNCLAS ABU DHABI 004293 

SIPDIS

STATE FOR NEA/ARP, S/CT, INL/ENT, EB/ESC
TREASURY FOR ZARATE, GLASER AND FINCEN FOR BAITY
MANAMA FOR BEAL

E.O. 12958: NA
TAGS: EFIN ETTC PTER ECON TC
SUBJECT: UAE CENTRAL BANK HOSTS USA PATRIOT ACT SEMINAR


UNCLAS ABU DHABI 004293

SIPDIS

STATE FOR NEA/ARP, S/CT, INL/ENT, EB/ESC
TREASURY FOR ZARATE, GLASER AND FINCEN FOR BAITY
MANAMA FOR BEAL

E.O. 12958: NA
TAGS: EFIN ETTC PTER ECON TC
SUBJECT: UAE CENTRAL BANK HOSTS USA PATRIOT ACT SEMINAR



1. SUMMARY: FINCEN Deputy Director William Baity spoke at
the UAE Central Bank's November 28 Seminar on the USA
Patriot Act in front of an audience of about 200 people,
including UAEG officials and private sector bankers and
lawyers. Central Bank Governor Al-Suwaidi asked Baity if
FINCEN would help organize another FIU training session,
similar to the training session for South Asian nations that
the Central Bank and FINCEN co-hosted in June 2004. They
agreed to have FINCEN and Central Bank Anti Money Laundering
and Suspicious Cases Unit staff discuss the details of the
proposed training. End Summary.


2. On November 28, The UAE Central Bank hosted a seminar for
about 200 people on the impact of the USA Patriot Act on
Banking and Investment Business. The audience included UAE
Central Bank officials, representatives from the UAE
Ministries of Foreign Affairs, Justice, and Interior, and
the Federal Customs Service. There was also a strong
private sector turn out of bankers and lawyers who were
interested in the topic.


3. The U.S. law firm of Patton Boggs, under contract from
the Central Bank, conducted the seminar. FINCEN Deputy
Director Baity spoke at the conference in response to an
invitation extended by Central Bank Governor Al-Suwaidi to
Treasury A/S Zarate for the U.S. Treasury Department to
provide a speaker. Central Bank Governor Al-Suwaidi opened
the conference by noting that the UAE is a major regional
financial center, processing 53 percent of all received
SWIFT messages and 40 percent of all sent SWIFT messages for
the region (Note: SWIFT is an interbank credit-transfer
system). For this reason, it was important for banks in the
UAE (and in the wider Gulf region) to understand the impact
of the USA Patriot Act. There was active audience interest
in the act's impact on banks and financial institutions in
the region. The tone of some of the questions reflected
some regional defensiveness. For example, some audience
members asked whether the U.S. viewed the Middle East as the
main source of terrorist financing and whether the USA
Patriot Act targeted Arab/Muslin world. Panel members
explained that post September 11 investigations did look at
the flow of funds from the Middle East, but that the focus
of the USG's anti money laundering efforts was worldwide.
Audience members also looked for more guidance on how to
apply "know your customer rules" and on when to report
suspicious transactions. Baity stressed that the financial
institutions needed to undertake their due diligence and to
know both their customers and the market in order to
understand what transactions might be suspicious.


4. Central Bank Governor Al-Suwaidi also asked Baity for
assistance in setting up a follow-on training program to the
successful June 2004 seminar for South Asian FIUs. The
target for this training session would be GCC states and/or
a broader Arab audience. Baity stressed that any training
session needed to target countries at about the same level
of anti-money laundering/terrorist financing development.
They agreed that the Central Bank would discuss details with
FINCEN's regional desk officer.


5. Comment: The UAE Central Bank continues to play a
leading role in providing training on anti-money laundering
and terrorist financing issues. It also looks to the USG as
a partner in this effort. Baity's participation as a
speaker was very useful in maintaining and improving this
relationship. End Comment.


6. Deputy Director Baity has cleared this cable.

SISON