MONEY LAUNDERING BILL PASSES COUNCIL OF

UNCLAS RABAT 000730 SIPDIS SENSITIVE SIPDIS STATE FOR NEA/MAG, S/CT, EB/ESC/TFS, AND INL TREASURY FOR OASIA, OFAC, AND OTA PLEASE PASS FINCEN E.O. 12958: N/A TAGS: KTFN EFIN PTER PGOV MO SUBJECT: MONEY LAUNDERING BILL PASSES COUNCIL OF GOVERNMENT (U) This cable is sensitive but unclassified, please protect accordingly. ¶1. (U) On April 19, Morocco's long awaited draft Anti- Money Laundering (AML) bill was approved the Moroccan Council of Government (the cabinet chaired by Prime Minister Driss Jettou). After clearing the Council of Government, a Ministerial Council, presided over by King Mohammed VI, will then offer final approval and submit the bill to Parliament for legislative action. The Council of Minister's meets at the King's discretion; no meeting is currently scheduled. ¶2. (SBU) Passage and implementation of AML legislation will enable Morocco to conform to international anti- money laundering and counter-terrorism finance standards and to install a Financial Intelligence Unit (FIU) that will receive and analyze suspicious transaction reports and disseminate them to appropriate law enforcement agencies for investigation, enhancing Morocco's ability to monitor its financial system for suspicious transactions suggesting criminal activity. AML passage (and FIU establishment) will also permit Morocco, as part of its anti-money laundering program, to draw on previously designated INL funds to help equip its FIU and to train AML experts. Morocco will then be able to be a full participant in international cooperative efforts to combat financing of terrorism. ¶3. (SBU) While some politicians have over the last several weeks reassured Econoffs that the AML bill will have smooth sailing once it reaches parliament, a Member of Parliament who serves on the Financial Committee told EconCouns in March that the Moroccan legislature would not consider the AML bill until the fall 2006 session. Banking contacts told Econoff that parliamentary consideration, as well as subsequent AML- required institutional reforms, could still delay full AML implementation even later. "There is still a lot the Government has to do once it passes Parliament" commented a senior commercial banker, "I'm sure we won't see it enacted until the fall, at the earliest." ¶4. (SBU) Comment: We are relieved to see progress on Morocco's AML legislation that has been languishing in the SGG for almost three years. Delay in adopting the legislation has hindered GOM counter terrorism finance (CTF) efforts and imperiled USG CTF-related assistance. However, several legislative and bureaucratic hurdles still remain before an FIU is up and running and banks are submitting suspicious activity reports (SARs) on a regular basis. Nonetheless, it now seems possible that the AML law could become reality by the end of 2006. RILEY