Identifier
Created
Classification
Origin
07RABAT955
2007-06-06 08:54:00
SECRET
Embassy Rabat
Cable title:  

U/S LEVEY CONGRATULATES MOROCCO ON NEW AML LAW AND

Tags:  KTFN EFIN PTER PGOV MA 
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DE RUEHRB #0955/01 1570854
ZNY SSSSS ZZH
R 060854Z JUN 07
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 6654
INFO RUEHAS/AMEMBASSY ALGIERS 4442
RUEHEG/AMEMBASSY CAIRO 2079
RUEHMD/AMEMBASSY MADRID 5720
RUEHNK/AMEMBASSY NOUAKCHOTT 3503
RUEHFR/AMEMBASSY PARIS 4646
RUEHCL/AMCONSUL CASABLANCA 3105
RHMCSUU/FBI WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUEAWJA/DEPT OF JUSTICE WASHDC
S E C R E T RABAT 000955 

SIPDIS

SIPDIS

STATE FOR NEA/MAG, S/CT/EB AND INL
TREASURY FOR U/S LEVEY, JPHILIPP, AND KHECHT

E.O. 12958: DECL: 05/29/2017
TAGS: KTFN EFIN PTER PGOV MA
SUBJECT: U/S LEVEY CONGRATULATES MOROCCO ON NEW AML LAW AND
UNDERSCORES U.S. COMMITMENT TO FURTHER COOPERATI0N

REF: RABAT 889

Classified By: Classified by Economic Counselor Stuart Smith,
reasons 1.4 (b and d).

S E C R E T RABAT 000955

SIPDIS

SIPDIS

STATE FOR NEA/MAG, S/CT/EB AND INL
TREASURY FOR U/S LEVEY, JPHILIPP, AND KHECHT

E.O. 12958: DECL: 05/29/2017
TAGS: KTFN EFIN PTER PGOV MA
SUBJECT: U/S LEVEY CONGRATULATES MOROCCO ON NEW AML LAW AND
UNDERSCORES U.S. COMMITMENT TO FURTHER COOPERATI0N

REF: RABAT 889

Classified By: Classified by Economic Counselor Stuart Smith,
reasons 1.4 (b and d).


1. (S) Summary: In a series of meetings on May 29, Treasury
Under Secretary for Terrorism and Financial Intelligence
Stuart Levey congratulated GOM officials on the recent
passage of Morocco's long-awaited anti-money laundering law
and emphasized USG readiness to help with its implementation.
He noted that U.S. experience has highlighted the importance
of "aggressive" implementation of AML powers, a point with
which his interlocutors expressed full agreement. Levey also
reviewed with Moroccan officials the changing nature of
terrorist threats in the Maghreb, and sought Morocco's
support in the international community's efforts to isolate
Iran. For their part, Moroccan security officials sought USG
assistance in scrutinizing the possible financing of
terrorist operations in Morocco by charitable organizations.
End Summary.


2. (SBU) In the whirlwind round of meetings on Tuesday, May
29, Levey met successively with Minister-Delegate for Foreign
Affairs Taib Fassi-Fihri, Ministry of Finance Secretary
General Abdellatif Loudiyi, Central Bank Director General
Abdellatif Faouzi, and the Director General for Internal
Affairs at the Ministry of the Interior, Mohiddine Amzazi.
With all his interlocutors, Levey expressed appreciation for
the close friendship and partnership that characterizes the
overall U.S.-Moroccan relationship, and is especially evident
in our cooperation in confronting terrorism. He
congratulated his counterparts on passage and publication of
Morocco's anti-money laundering legislation, and encouraged
its agressive implementation. The U.S. has found, he noted,
that collection and analysis of concrete financial
information offers leads that can be of critical assistance
in taking down terrorist networks, and in determining the
links that exist among them. The U.S., he stressed, stands
ready to assist Morocco as it moves to implement the

anti-money laundering law, and as it sets up its financial
intelligence unit (FIU).


3. (SBU) Moroccan officials, beginning with Minister-Delegate
Fassi-Fihri, echoed this positive assessment of bilateral
cooperation and reviewed the difficult gestation of the
anti-money laundering law. Fassi Fihri noted that with its
broad scope, reaching beyond financial institutions into a
range of professions, such as accountants and notaries, and
potential impact on financial transfers to Morocco from
Moroccan residents abroad, it had sparked concern and debate
in parliament. Ultimately, however, the government had won
passage, convincing legislators that it constituted a vital
step not just in fighting crime and terrorism, but in
bringing Morocco's financial system into accord with
international standards. He stressed that Morocco cooperates
closely with FATF-GAFI, and indeed expects to receive that
organization's reaction to the law and its recommendations
regarding implementing regulations in the next few weeks.


4. (SBU) Central Bank and Finance Ministry officials
amplified on these points, noting that the Central Bank
implemented an interim system governing financial
institutions via circular in 2003. They also noted the
contribution of Morocco's 2006 banking reform law, which
strengthened the Central Bank's oversight role and gave it
greater autonomy. They agreed that the new anti-money
laundering statute will strengthen and clarify the
obligations of all parties, and extend the system's reach to
non-financial entities. In general, however, they believed
that the financial system already effectively polices itself,
thanks in part to the large role of foreign banks in Morocco.
They also stressed that the 1267 process has worked well in
Morocco, and that the country has moved in a number of cases
to freeze suspect accounts. In response to a questions from
Levey, Central Bank and Finance Ministry officials differed
regarding the relative importance of "hawala" organizations,
with the Finance Ministry arguing they have a minimal role.
Central Bank officials, however, suggested that given the
expense and delay involved in sending funds via banks, some
Moroccans abroad do resort to hawalas, particularly in

European countries that have not permitted the establishment
of branches of Moroccan banks. In response to a separate
question, Finance Ministry Secretary General Loudiyi noted
that Morocco had taken the unusual decision of placing the
FIU in the Prime Minister's office rather than the Central
Bank or Finance Ministry in order both to ensure its
independence from line agencies and heighten its profile.


5. (C) Regarding the overall terrorist threat confronting
Morocco, Fassi Fihri noted that Morocco faces a number of
terrorist threats, including home-grown extremism among young
Moroccans, and an even more dangerous threat from external
terrorist groups based in the Sahel and Mauritania. He
suggested that contacts had developed between organized crime
and drug-trafficking organizations and these interests, which
amplified the risk. Similarly, a small percentage of
Moroccans overseas had fallen in with radical groups, and
might be moving money into the country in support of illegal
and terrorist activity. He thus agreed that Morocco has
strong incentive to move quickly and to implement the
anti-money laundering law aggressively.


6. (S) Director General Amzazi at the Ministry of the
Interior provided further detail on GOM perception of
terrorist threats in the region, noting that the events of
May 2003 and March and April 2007 had shown that "our society
can generate domestic terrorism." He agreed with U/S Levey's
assessment that al-Qaeda poses a growing risk in the Maghreb
region, and suggested recent events constitute the "first
results" of its new activism here. He noted that since the
start of the year, MOI has had information that groups of
terrorists are training in Northern Mali, and planning
operations in Morocco. As a result, Morocco has been on
"extreme alert" since January, and continues to work closely
with its friends, including the U.S., on the issue. The real
risk, he argued, is in the Sahel region, which he
characterized as a "no-man's land" and the "land of all
risks," given the interlocking problems of terrorism,
contraband, drugs, arms trafficking and human smuggling. He
added that the groups active there are not just a threat for
the countries of the region, but for the U.S. as well,
arguing that they have been active in Iraq, and may seek in
future to continue to select "similar victims."


7. (S) In response to Levey's inquiry about possible external
funding for these groups, Amzazi reviewed Morocco's steps to
implement an effective system to counter terrorist finance
and money laundering. He noted that this is not easy, given
the country's dependence on the informal economy. We are now
perfecting this, he said, thanks to the new anti-money
laundering law. He expressed concern, however, about
potential funding that reaches terrorists through charitable
or donor activity. There is a lack of "traceability" in such
funding, he argued, and authorities are concerned that
international aid could be "pirated" for illicit and even
terrorist purposes. He sought U.S. counsel and assistance in
this area. Levey noted that the U.S. has developed much
expertise in regulating charities and encouraging
transparency in their operations, and would be pleased to
offer whatever assistance it can.


8. (C) While the bulk of Levey's program was dedicated to
local terrorism concerns, at the close of his meeting with
Minister-Delegate Fassi Fihri he expressed hope that Morocco
would support international efforts to isolate Iran. Only
strong implementation of such a program, he argued, could
prevent Iran from succeeding in its efforts to set down roots
in the financial systems of other countries. He sought
Morocco's assistance in conveying this message to other Arab
states. Fassi-Fihri expressed understanding of Levey's
message and said Morocco is convinced that a peaceful
solution to the crisis is essential.


9. (SBU) Comment: U/S Levey's brief stop in Morocco offered a
welcome opportunity to renew high level dialogue on counter
terrorist finance and anti-money laundering issues with
senior Moroccan officials, and laid the base for further
cooperation once the new AML statute is fully implemented.
End Comment.

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