Diplomatic Note Received: Morocco's Terrorism

UNCLAS CASABLANCA 000633 SIPDIS SIPDIS STATE FOR S/CT, EB AND NEA/MAG E.O. 12958: N/A TAGS: EFIN KFTN PTER XF MO SUBJECT: Diplomatic Note Received: Morocco's Terrorism and Anti-Money Laundering Efforts REF: A. CASABLANCA 576 ¶B. RABAT 897 ¶C. CASABLANCA 457 ¶D. RABAT 234 (SBU) This cable is sensitive but unclassified, please protect accordingly. ¶1. (SBU) On June 7 , Embassy received diplomatic note BZ/1673/DG7 dated June 6, 2006, from the Government of Morocco (GOM) Ministry of Foreign Affairs and Cooperation's (MFA's),Office of Bilateral relations. The note is in response to recent demarches (reftels) encouraging continued efforts on the part of the GOM to combat terrorism finance and pass long awaited Anti- Money Laundering (AML) legislation. Full text of dipnote follows paragraph 2. ¶2. Text of Diplomatic Note BZ/1673/DG7: Begin text: The Ministry of Foreign Affairs and Cooperation of the Kingdom of Morocco presents its compliments to the Embassy of the United States of America in Rabat and, following its demarche on Moroccan progress relative to the fight against terrorism financing, has the honor to inform the Embassy hereinafter about the elements of information provided by the Ministry of Finance and Privatization: The bill relative to the fight against money laundering has been approved by the Government council during its April 19, 2006 meeting. Regarding the implementation of the MENA/FATF taskforce's special recommendation relative to cash smugglers, actions taken against them are limited to measures taken within the framework of the fight against fraud in general, while waiting for the adoption of legislation on money laundering. These actions cover the trafficking of currency, either during operations at the borders, or regarding money found within the framework of a posteriori controls carried out in import or export companies. Similarly, a control of travelers at the country's borders operates on the basis of targeting, which is founded on risk analysis and use of information. This control can also be triggered following notifications or denunciations of fraud, or even in a completely random way. Moreover, we need to point out the possibility for non- resident travelers to do a facultative declaration of currency at the entrance for sums whose exchange value is more than response. End text. ¶3. (SBU) Comment: The diplomatic note provides no new information. We continue to wait for AML legislation to be presented to parliament and passed into law. AML passage and implementation remain the missing pieces in Morocco's counter-terrorism finance efforts. The draft bill has languished for more than three years in inter- ministerial consideration, although recent passage of the bill by the Moroccan Council of Government chaired by the Prime Minister has rekindled hopes that the bill may be passed into law by the end of this year. Banking contacts warn us however that AML implementation will be challenging and likely require a significant adjustment period before the law can be considered fully in effect. GREENE