Identifier
Created
Classification
Origin
06LILONGWE273
2006-03-24 10:43:00
UNCLASSIFIED
Embassy Lilongwe
Cable title:
PARLIAMENT SET TO PASS ANTI-MONEY LAUNDERING BILL
how-toVZCZCXRO0468 RR RUEHDU RUEHJO RUEHMR DE RUEHLG #0273 0831043 ZNR UUUUU ZZH R 241043Z MAR 06 FM AMEMBASSY LILONGWE TO RUEHC/SECSTATE WASHDC 2549 INFO RUEATRS/DEPT OF TREASURY WASHDC 0439 RUEAWJA/DEPT OF JUSTICE WASHDC RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC RUCNSAD/SOUTHERN AFRICAN DEVELOPMENT COMMUNITY RUEHLO/AMEMBASSY LONDON 0196 RUEHFR/AMEMBASSY PARIS 0088 RUEAIIA/CIA WASHDC
UNCLAS LILONGWE 000273
SIPDIS
SIPDIS
STATE FOR AF/S, INR/AA
USAID FOR AFR/SA, PPC/AA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA/BEN CUSHMAN
PARIS FOR D'ELIA
E.O. 12958: N/A
TAGS: PGOV KDEM EAID EFIN ETRD PREL MI
SUBJECT: PARLIAMENT SET TO PASS ANTI-MONEY LAUNDERING BILL
REF: LILONGWE 66
UNCLAS LILONGWE 000273
SIPDIS
SIPDIS
STATE FOR AF/S, INR/AA
USAID FOR AFR/SA, PPC/AA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA/BEN CUSHMAN
PARIS FOR D'ELIA
E.O. 12958: N/A
TAGS: PGOV KDEM EAID EFIN ETRD PREL MI
SUBJECT: PARLIAMENT SET TO PASS ANTI-MONEY LAUNDERING BILL
REF: LILONGWE 66
1. Summary: Post's efforts to promote passage of anti-money
laundering (AML) legislation appear to be bearing fruit.
Legislators signaled their intention this week to pass the
bill in next month's parliamentary session, and are working
with government to resolve their remaining issues with the
bill. End summary.
2. Following a Mission-sponsored seminar in January for key
decision makers (reftel),the Malawi parliamentary legal
affairs committee this week organized its own AML workshop,
with assistance from USAID. Millennium Challenge-funded U.S.
Treasury and Justice Department representatives Carol Kelley
and Susan Smith served as expert advisors to the Committee.
Kelley and Smith outlined the importance of the legislation
for bringing Malawi into line with international norms, and
explained to parliamentarians how an AML regime works in
practice in other countries. They also offered ideas for
further changes to the draft bill that would bring it in line
with the intent of parliament as well as best practices. The
parliamentarians then held discussions with government
representatives to clarify a number of issues.
3. The proposed legislation will establish a regulatory regime
for reporting suspicious transactions of money laundering and
terrorist financing; create a financial intelligence unit
(FIU) to analyze those reports; and establish confiscation
procedures. Parliamentarians and government representatives
participating in the seminar expressed optimism that the draft
bill would be enacted as early as the April session.
3. Among the issues discussed in depth were the type of FIU
that Malawi would create, the location of that unit, and the
process of appointment and dismissal for its director. As
reported in reftel, the FIU is a sensitive issue, given
Malawi's history of abuse of a forfeiture law under the Banda
dictatorship.
4. Parliamentarians reached consensus that the FIU should be
employ an "administrative" rather than a "law enforcement"
model, i.e., that the FIU would collect and analyze
intelligence and then hand it over to police for further
investigation, arrest and prosecution. They also supported
the view that the FIU should be an independent agency of
government, and not be attached to another government
ministry, and the FIU director should be nominated by the
president and confirmed by the parliamentary public
appointments committee.
5. This new legislation will require harmonization with
revisions to Malawi's penal code (slated for amendment during
this parliamentary session) and draft terrorism legislation.
Our Millennium Challenge advisors will continue to work with
the parliamentary draftsman and key committee members to
provide advice on refining the texts.
GILMOUR
SIPDIS
SIPDIS
STATE FOR AF/S, INR/AA
USAID FOR AFR/SA, PPC/AA
TREASURY FOR INTERNATIONAL AFFAIRS/AFRICA/BEN CUSHMAN
PARIS FOR D'ELIA
E.O. 12958: N/A
TAGS: PGOV KDEM EAID EFIN ETRD PREL MI
SUBJECT: PARLIAMENT SET TO PASS ANTI-MONEY LAUNDERING BILL
REF: LILONGWE 66
1. Summary: Post's efforts to promote passage of anti-money
laundering (AML) legislation appear to be bearing fruit.
Legislators signaled their intention this week to pass the
bill in next month's parliamentary session, and are working
with government to resolve their remaining issues with the
bill. End summary.
2. Following a Mission-sponsored seminar in January for key
decision makers (reftel),the Malawi parliamentary legal
affairs committee this week organized its own AML workshop,
with assistance from USAID. Millennium Challenge-funded U.S.
Treasury and Justice Department representatives Carol Kelley
and Susan Smith served as expert advisors to the Committee.
Kelley and Smith outlined the importance of the legislation
for bringing Malawi into line with international norms, and
explained to parliamentarians how an AML regime works in
practice in other countries. They also offered ideas for
further changes to the draft bill that would bring it in line
with the intent of parliament as well as best practices. The
parliamentarians then held discussions with government
representatives to clarify a number of issues.
3. The proposed legislation will establish a regulatory regime
for reporting suspicious transactions of money laundering and
terrorist financing; create a financial intelligence unit
(FIU) to analyze those reports; and establish confiscation
procedures. Parliamentarians and government representatives
participating in the seminar expressed optimism that the draft
bill would be enacted as early as the April session.
3. Among the issues discussed in depth were the type of FIU
that Malawi would create, the location of that unit, and the
process of appointment and dismissal for its director. As
reported in reftel, the FIU is a sensitive issue, given
Malawi's history of abuse of a forfeiture law under the Banda
dictatorship.
4. Parliamentarians reached consensus that the FIU should be
employ an "administrative" rather than a "law enforcement"
model, i.e., that the FIU would collect and analyze
intelligence and then hand it over to police for further
investigation, arrest and prosecution. They also supported
the view that the FIU should be an independent agency of
government, and not be attached to another government
ministry, and the FIU director should be nominated by the
president and confirmed by the parliamentary public
appointments committee.
5. This new legislation will require harmonization with
revisions to Malawi's penal code (slated for amendment during
this parliamentary session) and draft terrorism legislation.
Our Millennium Challenge advisors will continue to work with
the parliamentary draftsman and key committee members to
provide advice on refining the texts.
GILMOUR