A/S WAYNE DISCUSSES TERROR FINANCE COOPERATION

C O N F I D E N T I A L SECTION 01 OF 02 ABU DHABI 000071

SIPDIS

DEPT FOR EB A/S WAYNE, EB/ESC/TFS JSALOOM, NEA/ARPI RSMYTH
TREASURY FOR U/S LEVEY, PHEFFERNAN, RLEBESNON
FBI FOR FWAIKURT, JHERRING

E.O. 12958: DECL: 01/07/2016
TAGS: ECON EFIN EAID KTFN PREL AE
SUBJECT: A/S WAYNE DISCUSSES TERROR FINANCE COOPERATION

REF: 05 ABU DHABI 4982

Classified By: Ambassador Michele J. Sison,
reasons 1.4 (b and d).


1. (C) Summary: Sheikh Abdullah bin Zayed al Nahyan,
Minister of Information and brother of UAE,s president, met
visiting Assistant Secretary for Economic and Business
Affairs Tony Wayne, Treasury DAS Ahmed Saeed, and Ambassador
Sison in Dubai January 6. They discussed the establishment
of a joint task force for combating terrorism financing, as
well the strategic investment initiative and the Free Trade
Agreement negotiations (reported septels). In a related
meeting, A/S Wayne and his party met Dubai Financial Services
Authority to discuss anti-money laundering practices. End
summary.

UAEG Cooperation against Terror Financing
--------------


2. (C) In a meeting in Dubai January 6, Assistant Secretary
for Economic and Business Affairs Tony Wayne and Sheikh
Abdullah bin Zayed al Nahyan, Minister of Information,
discussed plans for an interagency clearinghouse for terror
finance-related exchanges. Also participating were
Ambassador Sison, Treasury DAS Ahmed Saeed, EB/IFD/ODF
Financial Economist Roland de Marcellus, NEA/ARPI Deputy
Director Steve Walker, and Acting Consul General Jillian
Burns (notetaker). A/S Wayne commended the UAE for its
excellent cooperation on the issue of countering terror
financing, as evidenced by the upcoming first meeting of the
Joint Terrorist Financing Coordinating Committee (JTFCC),
planned for January 24 with the U.S. team to be lead by U/S
Levey. Ambassador Sison reviewed the parameters ) it is to
be a high level, interagency, inter-emirate, bilateral,
on-going taskforce. She noted that the embassy had laid out
the proposal to Central Bank Governor al Suweidi (reftel).
She provided Sheikh Abdullah with copies of the JTFCC
strategy paper and draft agenda.


3. (C) Ambassador indicated that Governor al-Suwaidi asked
her to share the concept with the UAE's political leadership,
and that she had provided an overview of the JTFCC to Deputy
Prime Minister Hamdan bin Zayed Al Nahyan earlier that day on
the margins of a condolence call for the death of UAE Prime
Minister and Vice President and Ruler of Dubai, Sheikh
Maktoum bin Rashid. There had been strong cooperation
between the USG and the UAEG on CT finance, and the JTFCC
would facilitate an even greater level of cooperation between
our two governments. Sheikh Abdullah undertook to consult
with the Central Bank and provide feedback on the concept and
proposed agenda. Wayne added this had been an initiative
first presented by White House Homeland Security Advisor Fran
Townsend and that it was a positive sign it was moving
forward. He noted new UAE Vice President and Prime Minister
Sheikh Mohammed bin Rashid Al Maktoum's statement of support
for increased bilateral cooperation on terror finance during
their conversation earlier in the day.

Dubai Financial Services Authority Pledges Cooperation
-------------- --------------


4. (C) A/S Wayne, his delegation, Ambassador and PolEconoff
Tim Brys (notetaker) also met January 6 with David Knott,
Chief Executive at Dubai Financial Services Authority (DFSA),
Niall Coburn, DFSA Director ) Enforcement, and Joyce Maykut,
DFSA General Counsel. Knott provided an overview of DFSA
operations, services and customer base before the
conversation turned to anti-money laundering (AML). Coburn
said, under strict confidentiality, that DFSA is willing to
cooperate and exchange information with the USG in AML cases.
According to Knott, all UAE laws except those related to AML
are dis-applied at the Dubai International Financial Center
(DIFC). (Note: UAE civil laws are dis-applied within DIFC.
DIFC companies are still required to abide by UAE criminal
laws -- including those regarding AML. End note.) Maykut
explained that DIFC is a separate jurisdictional entity from
the UAE, but all suspicious activity reports are sent to the
UAE Central Bank. Maykut added that since there has not been
an AML case yet (the financial exchange at DIFC opened for
business in September 2005),there remains some question over
the relationship with the Central Bank and the roles each
will play in investigating and prosecuting such a case. It
is possible the details of a case will determine the role of
each. Ambassador and A/S Wayne thanked DFSA for their
cooperation and agreed to continue the dialogue, perhaps with
discussions to include the Federal Reserve regarding their
regulatory system.


5. (U) This message has been cleared by A/S Wayne. Dubai
cable is being sent by Abu Dhabi due to the Eid holiday.

SISON