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