KAZAKHSTAN: INL CONDUCTS TRAINING COURSE FOR FINANCIAL

UNCLAS SECTION 01 OF 02 ASTANA 000578

SIPDIS

STATE FOR INL ALTON, AND CARROLL; EUR/ACE; SCA/CEN FOR OMARA;
JUSTICE FOR GREG DUCOT, TREASURY FOR ANTONOVICH

SIPDIS

E.O. 12958: N/A
TAGS: KCRM KCOR PGOV KZ
SUBJECT: KAZAKHSTAN: INL CONDUCTS TRAINING COURSE FOR FINANCIAL
POLICE INVESTIGATORS


ASTANA 00000578 001.2 OF 002



1. Summary: Embassy Astana's International Narcotics and Law
Enforcement (INL) office, in cooperation with the Financial Police
Academy (FPA),conducted a five day training course on money
laundering and financial investigative techniques for financial
police investigators in Astana February 13-17. Treasury Department
anti-money laundering (AML) instructors introduced participants to
best practices of investigation and prosecution of money laundering
and shared real-world experiences. End summary.

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BACKGROUND
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2. The course was the fifth in a series of Financial Investigative
Techniques courses under a joint INL-GOK program which are a part of
the official curriculum of the Financial Police Academy approved by
the Agency on Combating Economic Crimes and Corruption (Financial
Police). OTA trainers successfully conducted the first course for
professors and teachers of the Financial Policy Academy (FPA) in
January 2006. OTA trainers and FPA professors jointly conducted the
subsequent four courses for over 115 Financial Police investigators
from throughout Kazakhstan in July, October, and December 2006. The
purpose of the courses is to improve capacity of the financial
police to investigate financial crimes, especially money laundering.


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LESSONS AND DISCUSSIONS
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3. For the February course, a team from the Office of Technical
Assistance together with Kazakhstani experts and practicing
investigators from Interpol, the Procurator General's Office, the
Ministry of Internal Affairs, the Supreme Court, the Agency on
Combating Economic Crimes and Corruption (Financial Police),as well
as professors and teachers of the Financial Police Agency, trained
investigators from all oblasts of Kazakhstan on combating money
laundering. The international experts from the Treasury Department
taught the best U.S. practices in combating this crime and shared
their wealth of international experience in the field.


4. During the course the instructors and participants discussed the
importance of anti-money laundering policy for economic development
of Kazakhstan; reviewed the legal basis of and threats to the
economic security of Kazakhstan; discussed Kazakhstani legislation
on combating money laundering and conducted legal analysis of
Article 193 of the Criminal Code of Kazakhstan (on money
laundering); discussed the draft anti-money laundering law and the
structure of the future Financial Intelligence Unit (FIU); and
reviewed types of economic and financial crimes and methods to
combat these crimes.

5. In particular, the participants studied money laundering schemes
used in different parts of the Kazakhstani economy, reviewed money
laundering scenarios, studied special investigative techniques used
in detection and investigation of financial crimes, learned about
bulk cash smuggling and trade-based money laundering, and learned
methods of proof and how to conduct financial interviewing. Special
emphasis was placed on studying the material on money laundering for
terrorism financing, and schemes for laundering proceeds received
from illegal narcotics trafficking. The participants shared their
experiences in investigating financial crimes and discussed real
cases from their practice. The core of the course was devoted to
practical exercises on the above mentioned topics.


6. The participants' feedback revealed the widespread understanding
that money laundering is a transnational crime and the recognition
of the importance of international cooperation in combating money
laundering. The feedback also noted the importance of strengthening
cooperation between law enforcement agencies combating money
laundering in Kazakhstan.

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PRACTICAL OUTCOME
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7. OTA experts welcomed the idea of the FPA Director publishing a
book on anti-money laundering and financial investigative techniques
in English based on the jointly conducted courses. In addition, the
February course participants supported the proposal of the FPA
professors to publish a series of articles in Russian which will
represent the ideas of practicing investigators and researchers of
the FPA.

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NEXT STEPS
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ASTANA 00000578 002.2 OF 002




8. Per the request of the Financial Police Academy, INL will
continue providing technical assistance in 2007 and will develop a
new course designed for operational officers of the financial
police. The course will focus on detection of financial and
economic crimes including specific methods of detection and
investigation of crimes in banking, the oil and gas sector, mining
industry, telecommunications, agriculture, gambling business, state
and private construction, and the power industry. It will also
address specific methods of detection and preservation of evidence
of financial corruption, detection and investigation of crimes
related to legalization of capital and other property obtained by
illegal means. The training courses will be conducted in April,
September and November 2007.


9. In addition, as a portion of the FY 2003/2004 project plan, INL
provided the Financial Police Academy a language laboratory to help
the cadets learn English. This will make possible their enrollment
at law enforcement institutions abroad (U.S. or Europe) where they
can study best international experience fighting transnational
crimes and also permit cooperation with other law enforcement
authorities on international money laundering cases.

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COMMENT
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10. The series of trainings provided in 2006 and early 2007 was
very well received by the trainees and has already resulted in a
request for operational cooperation in an AML case. Post attributes
the GOK's receptivity to the collaborative training approach,
drawing on international and local expertise to teach all classes.
Effecting change in GOK institutions is a goal in all INL programs
and Post views the joint efforts in AML as a significant milestone
in achieving our foreign assistance goals. In the long term, Post
regards the GOK as a willing participant in countering money
laundering, in part due to its desire to create a regional financial
center in Almaty.

ORDWAY