2006-2007 SENEGAL INCSR PART II: FINANCIAL

UNCLAS DAKAR 002796

SIPDIS

SIPDIS

STATE FOR INL, AF, AF/RSA, AF/W, EB/ESC/TFS AND INR/AA
JUSTICE FOR AFMLS, OIA AND OPDAT
TREASURY FOR FINCEN

E.O. 12958: N/A
TAGS: EFIN KCRM KTFN PTER SNAR SG
SUBJECT: 2006-2007 SENEGAL INCSR PART II: FINANCIAL
CRIME AND MONEY LAUNDERING (SECOND OF TWO CABLES)

REF: A. STATE 157136

B. DAKAR 2789

CONTINUATION OF NUMBERED QUESTIONS FROM REF A
--------------

17. (CONTINUED) [NOTE: THIS CABLE IS A CONTINUATION OF
REF B. END NOTE.]

ASSET FORFEITURE AND SEIZURE LEGISLATION
--------------
Question 51: Has the country enacted laws and
established systems for identifying, tracing,
freezing, seizing, and forfeiting narcotics-related
assets as well as assets derived from or intended for
other serious crimes? If so, please describe the
authority (regulatory or judicial). Are now
legislation or changes in current laws, regulations,
judicial or administrative authorities, being
considered?

-- The uniform AML law provides for the freezing,
seizing, and confiscation of property by judicial
order. In addition, the FIU can order the suspension
of the execution of a financial transaction for 48
hours. The BCEAO can also order the freezing of funds
held by banks.

Question 52: What are the obstacles or disincentives
to enacting such laws, regulations, other authorities?

-- Senegal is a civil law country. As such, it does
not have a tradition of civil forfeiture.

Question 53: What are the major provisions in current
and/or proposed legislation? For example, what assets
can be seized? Do they include: instruments of crime
such as conveyances used to transport narcotics, or
farms on which illicit crops are grown or which are
used to support terrorist activity, or intangible
property such as bank accounts? Can substitute assets
be seized or must a relationship to the crime be
proven?

-- The uniform law allows the freezing, seizure and
confiscation of any property, corporal or incorporeal,
on order of the investigating judge as a conservation
measure. Upon conviction for money laundering or
attempted money laundering, the law provides for
obligatory confiscation of property that is the
proceeds of laundering; property into which that
property has been converted, commingled, invested or
transformed; and any proceeds (income) derived from
that property. There is an exception for an owner who
can establish that s/he was unaware of the illegal
source of the property. The court may also order, as
penal sanctions, the confiscation of any property used
or intended to be used in the offense, and the
confiscation of other property of the convicted person
(the latter does not appear to be ?substitute assets?
as that term is understood in the U.S.; the provision
does not relate the amount of licit property subject
to confiscation to the amount laundered or put beyond
the reach of the court).

Question 54: Can legitimate businesses be seized if
used to launder drug money, support terrorist
activity, or are otherwise related to other criminal
proceeds?

-- The AML law provides as stated in the previous
response. Whether the business is involved in the
offense, or subject to the innocent owner defense,
would depend on the facts of the case. A business
that is convicted of laundering can be dissolved or
closed. The law has not been applied in this regard.

Question 55: What government entities are responsible
for tracing, seizing and freezing assets? Is there a
period of time ascribed to the action of freezing,
after which the assets are released? Are frozen
assets confiscated? If yes, by what government
entity? Who receives proceeds from asset seizures and
forfeitures?

-- The FIU can order a 48-hour freeze (in the form of
a delay on the execution of a transaction). Such


action must be converted to a judicial order within 48
hours or the freeze must be lifted. As noted above,
the investigating judge can issue orders freezing or
seizing assets as a conservatory measure. Confiscated
property goes to the public treasury.

Question 56: Does the banking community cooperate with
enforcement efforts to trace funds and seize/freeze
bank accounts?

-- As far as is known, the banking community has been
very cooperative with enforcement efforts to trace
funds and seize/freeze bank accounts. The banking
community applauded the GOS decision to pass the
uniform law on money laundering, which reduces banking
secrecy. All but two of the 59 suspicious activity
declarations to date have come from the banking
sector, and two transactions (wire transfers) have
been stopped this year.

Question 57: Does the law allow for civil as well as
criminal forfeiture?

-- The uniform law allows explicitly for criminal
forfeiture. There is no provision for American-style
civil forfeiture. It is not clear what happens to
property seized if no prosecution results and no owner
is identified.

Question 58: Does the Government enforce existing
drug-related asset seizure and forfeiture laws? Does
the jurisdiction have adequate police powers and
resources to trace, seize and freeze assets? If so,
can the jurisdiction freeze assets without undue
delay?

-- Customs seizures are common; the number of
confiscations is not known.

Question 59: Does the government have an independent
system and mechanism for freezing terrorist assets?

-- Though the Government does not have an independent
system and mechanism for freezing terrorist assets,
there are several entities including the BCEAO,
financial entities such as banks (upon request from
the Government officials or the BCEAO),and the
Ministries of Justice and Interior can order the
freezing of terrorist assets.

Question 60: What was the dollar amount of non-
terrorist related assets frozen, forfeited and/or
seized in the past year? How does this amount compare
to amounts seized in previous years?

-- Statistics on the value of seized assets are
unavailable.

Question 61: Has the country enacted laws for the
sharing of seized narcotics assets, as well as the
assets from other serious crimes with other
governments?

-- The uniform law provides that the sharing of seized
narcotics assets with other governments can be
negotiated on a case-by-case basis.

Question 62: Is the Government engaged in bilateral or
multilateral negotiations with other governments to
enhance asset tracing freezing and seizure?

-- Senegal is required by the uniform law on money
laundering to freely exchange information with the
FIUs of each of the WAEMU countries, although at
present only Senegal and Niger have a functioning FIU.
The FIU has signed MOUs with the FIUs in Belgium,
Lebanon and Nigeria and has begun negotiations with
other countries including France and Monaco. Senegal
hopes to join the Egmont Group in 2007.

INTERNATIONAL COOPERATION
--------------
Question 63: Has the country adopted laws or
regulations that allows for the exchange of records
with the United States on narcotics and narcotics
related money laundering, as well all-source money

laundering, terrorism and terrorist financing
investigations and proceedings? Has the jurisdiction
reached agreement with the United States authorities
on a mechanism for exchange of records in connection
with such investigations and proceedings? If not, is
the country negotiating in good faith with the United
States to establish such an exchange mechanism? Does
the jurisdiction have similar arrangements with other
jurisdictions?

-- With respect to money laundering, the uniform AML
law provides that the FIU may enter into cooperation
accords with other FIUs. The Senegalese FIU will soon
begin this process with FinCen. The law also contains
extensive provisions for the exchange of information
on a judicial level. These provisions comport with
international standards.

Question 64: Identify all treaties, agreements, or
other mechanisms for information exchange that host
country has entered into with the USG or other
countries, including agreements between the FIU and
its counterparts, and those with home country
supervisors to facilitate the exchange of supervisory
information regarding banks and trust companies
operating in the host country. Describe the status of
efforts to update such agreements or arrangements.

-- To Mission?s knowledge, Senegal has entered into
agreements with a number of countries (Tunisia,
Morocco and France),and through ECOWAS, regarding
mutual assistance in criminal matters. Regarding the
FIU, as stated above, Senegal currently has agreements
with the FIUs in Belgium, Lebanon and Nigeria.
Senegal hopes to join the Egmont Group in 2007.

Question 65: Has the country cooperated, when
requested, with appropriate law enforcement agencies
of the USG and other governments investigating
financial crimes related to narcotics, terrorism,
terrorist financing and other crimes? If the country
has cooperated on important cases with USG agencies,
please describe.

Mission knows of no instance where the USG has
requested such cooperation, but in general Senegalese
authorities have demonstrated their commitment and
willingness to cooperate.

Question 66: Please detail any instances of refusals
to cooperate with foreign governments, as well as any
action taken by the USG and any international
organization to address such obstacles, including the
imposition of sanctions or penalties?

-- Mission is unaware of any refusals to cooperate
with foreign governments in routine cases.

Question 67: Is the country a party to the UN
International Convention against Illicit Traffic in
Narcotic Drugs and Psychotropic Substances (Vienna
Convention),the UN Convention against Transnational
Organized Crime, and, the UN Convention against
Corruption or other applicable agreements and
conventions? Does it adhere to relevant international
money laundering standards, such as the
recommendations of the Financial Action Task Force,
the policy directive of the EC, and the legislative
guidelines of the OAS and/or other similar
declarations? If so, what steps is it taking to
implement them? If not, what, if any, steps are the
country taking to become a party or implement?

-- Senegal is a party to the UN International
Convention against Illicit Traffic in Narcotics Drugs
and Psychotropic Substances (Vienna Convention),the
Convention against Transnational Organized Crime, the
1999 International Convention for the Suppression of
the Financing of Terrorism, and the Convention against
Corruption. Senegal accepts the recommendations of
the FATF, and is attempting to implement them through,
inter alia, the adoption of the uniform law and the
operationalization of the first FIU in the region.
Senegal is waiting for BCEAO/WAEMU action on the
criminalization of terrorist financing.

UPDATES TO ADDITIONAL QUESTIONS FROM 2005 INSCR
-------------- --
Question: Does the jurisdiction have the authority to
identify, freeze, seize and/or forfeit terrorist
finance?related assets? If so, please describe the
authority invoked (regulatory, legislative, judicial,
administrative).

-- Pursuant to a September 19, 2002 BCEAO directive,
banks are required to freeze assets of UN-designated
terrorists and terrorist entities. There are no
provisions for seizing and/or forfeiting terrorist
financing-related assets.

Question: Has the jurisdiction become a party to the
1999 International Convention for the Suppression of
the Financing of Terrorism?

-- Yes. Moreover, the draft BCEAO directive on
terrorist financing adopts the definition of terrorism
found in the Convention.

Jacobs