Identifier
Created
Classification
Origin
05GUATEMALA2685
2005-11-29 20:04:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Guatemala
Cable title:  

TERRORISM FINANCE IMPLEMENTING REGULATIONS COVER

Tags:  KTFN KVPR EFIN PTER ETTC PREL SNAR GT 
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UNCLAS GUATEMALA 002685 

SIPDIS

SENSITIVE

STATE FOR EB/ESC/TFS, S/CT, INL/C, IO/PHO; TREASURY FOR
MAUREEN WAFER, NAN DONNELS, KATIE KLINGENSMITH, OFAC AND
FINCEN; JUSTICE FOR SARAH MCCREADY

E.O. 12958: N/A
TAGS: KTFN KVPR EFIN PTER ETTC PREL SNAR GT
SUBJECT: TERRORISM FINANCE IMPLEMENTING REGULATIONS COVER
REMITTANCES

REF: GUATEMALA 2093

UNCLAS GUATEMALA 002685

SIPDIS

SENSITIVE

STATE FOR EB/ESC/TFS, S/CT, INL/C, IO/PHO; TREASURY FOR
MAUREEN WAFER, NAN DONNELS, KATIE KLINGENSMITH, OFAC AND
FINCEN; JUSTICE FOR SARAH MCCREADY

E.O. 12958: N/A
TAGS: KTFN KVPR EFIN PTER ETTC PREL SNAR GT
SUBJECT: TERRORISM FINANCE IMPLEMENTING REGULATIONS COVER
REMITTANCES

REF: GUATEMALA 2093


1. (SBU) Guatemala's Financial Intelligence Unit (IVE)
proposed implementing regulations for the recently passed
terrorism finance legislation. The regulations will need to
be approved by the monetary board before implementation. In
advance of this submission, the IVE consulted EconOff and
provided a draft copy. The IVE sought USG input on new
requirements affecting wire transfers and remittances, as the
US is the source of almost all of Guatemala's nearly $3
billion in annual remittances. Preliminary copies of the
regulations are available from Tom Palaia at
PalaiaT@State.gov or 502-2326-4632. The legislation itself
is available in English from the Superintendency of Banks at
their web-site: www.sib.gob.gt.


2. (SBU) In consultation with US Treasury, Post advised the
IVE on applicable US standards and new Financial Action Task
Force (FATF) recommendations, which were incorporated in the
draft regulations. The regulations require that companies
facilitating money transfers in Guatemala, equal to or in
excess of $1000, must request that the transfer include the
name, address, and date and place of birth of the
transaction's originator. If this information is not
provided, they are required to "pay special attention" to the
transaction, a preliminary step, short of finding a
transaction "suspicious", which triggers reporting
requirements. The remittance facilitator must also ask the
end recipient for similar information. Collection of
recipient information goes beyond FATF recommendations but
the IVE included this requirement to improve their
investigative capabilities. The regulations do not specify
any requirements as to what type of ID or standard must be
applied by the remitter or transfer source, as this part of
the transaction normally occurs outside of Guatemala. The
$1000 amount is low enough to comply with new FATF
guidelines, yet high enough that it should not affect normal
remittance flows, thus avoiding the unintended consequence of
driving remitters away from the formal sector, further
complicating potential regulation and investigation.
WHARTON