BMA GOVERNOR ON FINANCE AND TELECOMS

C O N F I D E N T I A L MANAMA 000237

SIPDIS

STATE FOR NEA/ARPI DBERNS
STATE PASS USTR JBUNTIN

E.O. 12958: DECL: 02/19/2015
TAGS: ECON EFIN ECPS ETTC BA
SUBJECT: BMA GOVERNOR ON FINANCE AND TELECOMS

Classified By: Ambassador William T. Monroe for reasons
1.4 (b) and (d).


1. (C) In an introductory call February 9, the Ambassador
congratulated former Batelco chairman Rasheed Mohammed Al
Maraj on his appointment as governor of the Bahrain Monetary
Agency, Bahrain's central bank. In response to the
Ambassador's comment on Bahrain's leading role in the Middle
East and North Africa Financial Action Task Force (MENA
FATF),Al Maraj said the GOB is committed to complying with
all rules and disclosing all information related to combating
money laundering and terrorism financing He wants to work
closely with the USG on these issues. (NOTE. The Middle
East and North Africa states established a FATF in November
2004, headquartered in Manama, to combat money laundering and
terrorism financing. END NOTE). Al Maraj stated that the
BMA coordinates with the U.S. Federal Reserve Board on
regulatory matters and training, and will host Fed officials
at the end of February for a regional seminar for bank
supervisors.


2. (C) Al Maraj spoke at length about telecommunications
regulation from his perspective as former chairman of
Batelco, Bahrain's national telecommunications company. He
agreed with the Ambassador on the importance of corporate
governance and the need to increase transparency. Regulating
the telecom industry is the first step in regulating all
public utilities. Al Maraj said deregulation in the telecom
sector has proven to be a big success and has spurred 30
percent growth despite initial fears that deregulating
Bahrain's small market would cause turmoil in the marketplace.

MONROE