RE-ENGAGING GOK AGENCIES ON CTF/AML TECHNICAL

UNCLAS SECTION 01 OF 02 KUWAIT 001056 SIPDIS SENSITIVE SIPDIS LONDON FOR TSOU, PARIS FOR ZEYA, AMMAN FOR BRIAN GRANT, TREASURY FOR KRISTIN HECHT, JERRY ROWE, FINCEN FOR DIRECTOR WERNER AND AHMED ELBASHARI, JUSTICE FOR JAMES SILVERWOOD AND AMY YOUNG E.O. 12958: N/A TAGS: ECON PGOV PREL KTFN KU SUBJECT: RE-ENGAGING GOK AGENCIES ON CTF/AML TECHNICAL ASSISTANCE OPPORTUNITIES REF: A. KUWAIT 539 ¶B. KUWAIT 284 ¶C. 05 KUWAIT 3059 ¶D. 05 KUWAIT 1400 ¶E. POPAL/ELBASHARI EMAIL OF 3/19/06 ¶1. (SBU) In an effort to develop and implement a multi-pronged technical assistance training program (per ref A) with relevant GOK CTF/AML agencies, Econoff met separately with officials at the GOK Ministry of Justice's Office of the Public Prosecutor (PPO) and the Ministry of Commerce and Industry's (MOCI) AML Office to elicit GOK feedback on specific CTF/AML technical assistance needs, including pending USG offers and to discuss the GOK's latest CTF/AML efforts. Revisiting the OPDAT Program for Kuwait -------------- ¶2. (SBU) During a March 18 meeting with Riad Al-Hajri, the PPO's Attorney General for Public Monies Prosecution, Econoff raised the possibility of revisiting the April 2005 DOJ-proposed Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) program for Kuwait's judicial sector involved in CTF/AML efforts. ¶3. (SBU) Al-Hajri, who is familiar with the program and the USG offer originally proposed in April 2005, reiterated his interest in the program (refs C and D). Per DOJ OPDAT recommendation, Econoff proposed the possibility of a May visit to Kuwait by DOJ's new Resident Legal Advisor (RLA) to develop the training program in consultation with PPO officials. Al-Hajri endorsed the idea and offered to convene a meeting of relevant MOJ officials during the RLA's visit. ¶4. (SBU) Regarding the PPO's latest CTF/AML efforts, Al-Hajri, as principal drafter of the GOK's new CTF/AML law, lamented the delay in finalizing the revisions to the 2002 AML law (No. 35). A final draft would be available early this summer, he predicted, adding that the January death of the Amir and subsequent political reshuffling contributed to delays in convening the GOK's interagency National Committee on Combating Terrorist Financing and Money Laundering. Econoff reiterated the USG's interest in reviewing the draft. Al-Hajri promised to share a copy of the draft with the Embassy for review by relevant USG agencies. ¶5. (SBU) Al-Hajri reiterated his interest in strengthening the FIU as one of many necessary reforms to the GOK's CTF/AML regime. He requested additional information on the form and function of Financial Intelligence Units (FIUs),including possible models applicable to Kuwait. (Note: Al-Hajri inquired about the Egyptian FIU as a possible model for Kuwait. Most of Kuwait's judges and legal codes are Egyptians.) Econoff provided Al-Hajri with a general FIU overview and promised to pass along more detailed information from FinCEN (ref E). Strengthening MOCI's AML Financial Investigative Skills -------------- -------------- ¶6. (SBU) On March 22, Econoff met with Nidal Al-Khuraibet, Deputy Director of the MOCI's AML office (ref B) to discuss specific training needs to augment the office's efforts to monitor exchange houses and other non-banking/financial institutions including gold merchants, insurance companies and investment firms. ¶7. (SBU) Underscoring his commitment to strengthening the GOK's CTF/AML efforts, Al-Khuraibet admitted that any assistance would help augment his efforts. He requested training workshops on the latest international CTF/AML policies and procedures and specialized training on financial investigative techniques to more effectively assess and monitor the financial records of exchange houses and other entities that fall under his office's purview. Without such training, his inspectors would be limited in its ability to effectively counter and detect money laundering or possible KUWAIT 00001056 002 OF 002 terrorist financing, he added. ¶8. (SBU) Econoff suggested the possibility of USG technical assistance through the U.S. Treasury Department and possibly MEPI's Partnership for Financial Excellence program. Econoff also pointed to a possible April visit to Kuwait by Thomas Mahoney, the IRS attache tasked with developing a Financial Investigation Techniques (FIT) course. Econoff offered to pass Al-Khuraibet's requests for training to the appropriate USG entities in an effort to develop and implement appropriate programs to meet MOCI's needs. Al-Khuraibet welcomed the possibility of having his office participate in upcoming courses and in working with the Embassy to explore additional training opportunities in Kuwait. (Note: Econoff has contacted Jerry Rowe at Treasury's OTA office and Thomas Mahoney regarding next steps on these efforts. End note.) ******************************************** For more Embassy Kuwait reporting, see: http://www.state.sgov.gov/p/nea/kuwait/index. cfm?cables Or Visit Embassy Kuwait's Classified Website: http://www.state.sgov.gov/p/nea/kuwait/ ******************************************** LEBARON