MOROCCO LAUNCHES AGRESSIVE CAMPAIGN TO PUBLICIZE

UNCLAS RABAT 001699 SIPDIS SENSITIVE SIPDIS DEPT FOR NEA/MAG, S/CT, EB AND INL CAIRO FOR TREASURY ATTACHE E.O. 12958: N/A TAGS: EFIN PTER PGOV MA SUBJECT: MOROCCO LAUNCHES AGRESSIVE CAMPAIGN TO PUBLICIZE ITS NEW AML STATUTE REF: RABAT 889 Sensitive but unclassified - not for internet distribution. ¶1. (U) Summary: The Moroccan government on October 31 launched an aggressive campaign to publicize the country's new anti-money laundering statute and to educate concerned institutions about their responsibilities under the legislation. Moroccan Central Bank Governor Abdellatif Jouahri was joined by the Ministers of Finance, Justice, and Interior, as well as the President of the Chamber of Representatives for the session, which was also attended by top figures from banking and financial circles in Casablanca, including Othman Benjoullon, President of BMCE Bank and the Moroccan Banking Association. The Rabat kick-off will be followed over the next few months by similar events in other major Moroccan cities. End Summary. ¶2. (U) The highly-publicized campaign seeks to explain the contents and objectives of Morocco's new anti-money laundering statute (law No. 43-05) and to inform concerned actors about how the system will work so they can carry out their responsibilities and coordinate regularly with appropriate officials. It also appears aimed at countering widespread concerns, which found voice during parliamentary debates earlier this year prior to the law's passage, that the legislation will harm the Moroccan economy. Jouahri emphasized to attendees that the legislation is necessary not just to enable Morocco to fulfill its international obligations, but also to "improve the business climate in our country." Money laundering, he stressed, has a negative impact on a country's economic well-being, as it increases risks for financial institutions and damages a country's international reputation, thereby leading investors and others to hestitate to do business with it. ¶3. (U) The legislation, Jouahri said, brings Morocco's AML regime into better conformity with international norms and will enable the country to contribute fully to international efforts against money laundering. He credited parliament with ensuring both that the law took into account the Moroccan context, and that it respected the "professional confidentiality" of those who play a role in the system, SIPDIS while also shielding them from legal liability for carrying out their obligations. Jouahri stressed that Morocco is prepared for the new law, as the Central Bank moved as early as 2003 to ensure proper vigilance in the banking sector. The legislation, he argued, formalizes and completes the bank's earlier work. Jouahri noted that other parallel efforts have also contributed to consolidation of Morocco's anti-terror finance and anti-money laundering regime. These include raising the percentage of the population that uses banks (though it still remains low at 25 percent), encouraging recorded payments, and enhancing banking supervision. In closing, Jouahri stressed the need for strong international cooperation, and noted Morocco's existing ties on the subject with a range of international actors, including the European Union and United States, and the United Nations, IMF, and World Bank. ¶4. (U) Other speakers delivered similar messages, including Minister of Finance Mezouar and Minister of Justice Radi. Though Prime Minister El-Fassi could not attend due to the parliamentary debate over his government's program, his message was read to those present by an official from the Primature. The Ministers also emphasized that the measure is an integral part of Morocco's efforts to combat corruption in all its forms. ¶5. (SBU) Neither Jouahri nor any of his colleagues, however, indicated when Morocco's Financial Intelligence Unit (FIU) will be operational. That entity remains the key missing piece in the puzzle. Contacts told us earlier this year that the unit should be operational from the beginning of 2008, and that appears to remain the plan. ¶6. (SBU) Comment: The high profile launch indicates the priority that Morocco accords to the legislation and its desire to ensure that it functions effectively. Turnout from both government and private sector was impressive. Equally noteworthy was the major billing all speakers gave to parliament's "contribution" to the final shape of the legislation. We will follow up with key contacts to reconfirm that Morocco is on track to launch the FIU next year. End comment. ***************************************** Visit Embassy Rabat's Classified Website; http://www.state.sgov.gov/p/nea/rabat ***************************************** Jackson