FINANCIAL INTELLIGENCE UNIT DEVELOPMENT

UNCLAS YEREVAN 002609

SIPDIS

DEPT FOR INL/JCAMPBELL;INL/CMESHESKE;TREASURY FOR OTA

E.O. 12598: N/A
TAGS: KCRM SNAR EAID EFIN AM
SUBJECT: FINANCIAL INTELLIGENCE UNIT DEVELOPMENT
ASSISTANCE FOR ARMENIA

REF: YEREVAN 2604


1. On November 24 the National Assembly of Armenia
adopted the Anti-Money Laundering and Terrorist
Financing Bill in the first reading (ref). The
adoption of the bill sanctions the Central Bank of
Armenia to proceed with the establishment of the
Financial Intelligence Unit as proposed in the law.
MONEVAL's evaluation team has said that creation of an
FIU in Armenia is a matter of urgency. By the end of
the first round of the Armenia assessment in the
framework of MONEYVAL in February 2005, The Government
of Armenia is to have passed the Anti-Money Laundering
Law and to have established the FIU.


2. The Central Bank of Armenia has been requesting
assistance in establishment of the FIU from Embassy
Yerevan for several months. $100,000 of FY2001 Embassy
Yerevan INL funding was obligated to the Department of
the Treasury Office of Technical Assistance (OTA) for
anti-money laundering assistance for Armenia. No
assistance has yet been provided. Now is the time to
engage with the GOAM to provide expertise in an area
critical to U.S. policy goals.


3. Post requests that INL work with OTA in Washington
to arrange for the visit of an FIU expert to Armenia in
January 2005 to advise the Government of Armenia and to
assess what additional assistance is required.

EVANS