UAE CONCERNS: US-MIDDLE EAST/NORTH AFRICA PRIVATE

UNCLAS ABU DHABI 002210 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PTER KTFN ECON EFIN ETTC PREL AE SUBJECT: UAE CONCERNS: US-MIDDLE EAST/NORTH AFRICA PRIVATE SECTOR DIALOGUE REF: A. STATE 82665 ¶B. ABU DHABI 02113 ¶1. (SBU) In response to Ref A, the following are key officers at the Emirates Banking Association: 1) Mr. Fathi Mahmood Saik, General Manager, (971)2-627-2541 (phone), (971)2-627-4155(fax),ebuau@emirates.net.ae and, 2) Mr. Awni Bushnaq, Financial and Administrative Manager, (971) 2-627-2541 (phone) and (971)2-627-4155 (fax). ¶2. (SBU) Bankers and employees of money exchange centers in the UAE first and foremost complain about the impact of the U.S. Patriot Act on banking transactions within the U.S. Another concern is that money service businesses (MSBs) -- which operate as banks in the UAE and are regulated by the Central Bank -- often cannot operate in the U.S. because they are not considered banks. Some U.S. banks refuse to open accounts with UAE money exchanges because they are worried about the risk of having accounts with non-banks. According to MSBs in the UAE, some U.S. financial institutions believe UAE money service businesses are not regulated as stringently as UAE banks. However, all UEA MSBs must comply with the UAE's anti-money laundering and terror finance requirements (Ref B). ¶3. (SBU) Econoff Amanda Curtis, (971) 2-414-2542, will participate in the upcoming conference call with TFI at a time TBD to discuss the background and goals of the international private sector outreach initiative. SISON