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. -------------- BACKGROUND -------------- ¶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. -------------- LESSONS AND DISCUSSIONS -------------- ¶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. -------------- PRACTICAL OUTCOME -------------- ¶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. -------------- NEXT STEPS -------------- 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. -------------- COMMENT -------------- ¶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