Identifier
Created
Classification
Origin
05ABUDHABI509
2005-02-04 05:59:00
CONFIDENTIAL
Embassy Abu Dhabi
Cable title:  

UAE CENTRAL BANK GOVERNOR DISCUSSES CT FINANCE, FTA

Tags:  EFIN ETRD IZ PTER TC 
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Diana T Fritz 12/06/2006 03:02:08 PM From DB/Inbox: Search Results

Cable 
Text: 
 
 
C O N F I D E N T I A L ABU DHABI 00509

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

DISSEMINATION: ECON
CHARGE: PROG

APPROVED: AMB:MJSISON
DRAFTED: ECON:AECURTIS
CLEARED: ECON:OJOHN, DCM:RALBRIGHT

VZCZCADI657
PP RUEHC RHEHNSC RUEHZM RUEHDE
DE RUEHAD #0509/01 0350559
ZNY CCCCC ZZH
P 040559Z FEB 05
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC PRIORITY 7989
INFO RHEHNSC/NSC WASHDC PRIORITY
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEHDE/AMCONSUL DUBAI 4796
C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000509 

SIPDIS

NSC FOR PATRICK HEFFERNAN

E.O. 12958: DECL: 02/04/2015
TAGS: EFIN ETRD IZ PTER TC
SUBJECT: UAE CENTRAL BANK GOVERNOR DISCUSSES CT FINANCE, FTA

REF: ABU DHABI 00301

Classified By: (U) Classified by Ambassador Michele J. Sison for reaso
ns 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000509

SIPDIS

NSC FOR PATRICK HEFFERNAN

E.O. 12958: DECL: 02/04/2015
TAGS: EFIN ETRD IZ PTER TC
SUBJECT: UAE CENTRAL BANK GOVERNOR DISCUSSES CT FINANCE, FTA

REF: ABU DHABI 00301

Classified By: (U) Classified by Ambassador Michele J. Sison for reaso
ns 1.4 (b) and (d).


1. (U) Summary: Ambassador met with Central Bank Governor
Sultan Nasser Al Suwaidi to discuss counterterror finance
cooperation on January 29. Governor Al Suwaidi focused on
regional CT finance engagement and on expected Free Trade
Agreement discussions with the banking sector. End summary.


Bilateral CT Cooperation Continues, Deepens
--------------


2. (C) The Ambassador thanked Al Suwaidi for the Central
Bank,s cooperation and assistance in regards to
counterterror financing efforts, particularly for his
leadership in freezing accounts related to CT and
proliferation concerns (septel). Al Suwaidi laughed and
said, &it wasn,t leadership, it was pressure.8 The
Central Bank has, on more than one occasion, taken the
initiative to exceed its strict legal mandate to freeze
accounts.


3. (C) The Governor informed the Ambassador that cooperation
and coordination between the Central Bank and FINCEN is
excellent, and he cited as an example the UAE-initiated
investigation on the Iraqi insurgent financier, Izz al-din Al
Majid. He said that the Central Bank official in charge of
the investigation is actively collecting information and
sending it to FINCEN, and that they are in daily contact.


4. (C) Likewise, the U.S. has continued to receive excellent
support from the Central Bank on its investigations of
Moussoui and 9/11, and the Ambassador thanked Al Suwaidi for
continually granting FBI/Terrorist Financing Operations
Section (TFOS) access to information and documents relating
to the case (a TFOS team is in Abu Dhabi this week to
follow-up). The Ambassador also thanked Al Suwaidi for his
assistance on the Al-Shamsi case and asked for an update. Al
Suwaidi responded that the case remains with SSD/Dubai.


5. (C) In response to Ambassador,s question about reporting
requirements for cash couriers, Al Suwaidi provided a draft
regulation that requires individuals to report cash exports
in excess of 10,000 USD. (Comment: The previous regulation

required reporting only for the importation of cash. Central
Bank officials have told us that the failure to address the
export of cash was an oversight, and this new regulation
corrects that problem. End comment.)


Central Bank Governor Supports MENA/FATF
--------------


6. (C) Al Suwaidi informed the Ambassador that the UAE
intends to approach the chair of Middle East North
Africa/Financial Action Task Force (MENA/FATF) and offer the
organization to opportunity to co-sponsor the upcoming 3rd
Hawala conference in April. Al Suwaidi told the Ambassador
that he believes MENA/FATF should focus on two areas in
regards to counterterrorist financing. First, the countries
of the region need to unify standards and criteria for
identifying wrongdoers, and second, a transparent and uniform
system needs to be created. One of the challenges that
countries will face as they move toward standardizing the
process stems from the fact that not all of the GCC countries
have their FIU,s within the Central Bank. In several of the
countries, counterterrorist financing responsibilities lie
with the ministries of interior.


7. (C) The Governor noted that in the past year, U.S.
training programs in the UAE have decreased, but he observed
that this decline might be the result of MENA/FATF, and that
he agrees with the shift of emphasis to the U.S. providing
multilateral assistance programs. Al Suwaidi stated his
intent to discuss ideas for specific training with the
MENA/FATF chair, and said that they would then approach the
U.S. with specific requests for workshops, seminars, and
technical assistance.


Consultations to Begin with Banks in Advance of FTA
-------------- --------------


8. (C) The Central Bank will begin the consultation process
with UAE commercial banks in advance of the expected Free
Trade Agreement negotiations with the United States, and the
Governor observed that he is anticipating a &big row8 with
the banks. The Central Bank issued a questionnaire to UAE
banks, and after each bank completes it, officials from the
Central Bank will meet with the banks to discuss issues of
concern, and then will issue a press release. Al Suwaidi
noted that his government must take into consideration the
needs and concerns of the private sector, and he hopes that
these consultations will help address and allay their
concerns. (Comment: This is a pro-active and useful effort
on the Central Bank Governor,s part to consult and garner
support in the banking sector for an FTA. Although bankers
have not approached us directly with specific concerns, based
on our understanding of the banking environment, we suspect
some bankers will be apprehensive about the sector being
overbanked and the threat of American competition to the
smaller banks. There are 46 banks in the UAE, many of which
are small. Allowing a U.S. bank to establish a 100% owned
subsidiary or acquire 100% of a local financial institution
would be controversial within UAE banking circles, which
support the current moratorium on new licensing. End
comment.)


SISON