Identifier
Created
Classification
Origin
08ABUDHABI1420
2008-12-18 09:12:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Abu Dhabi
Cable title:
NOVEMBER 2008 MENAFATF PLENARY
how-toVZCZCXRO9380 OO RUEHDE RUEHDIR DE RUEHAD #1420/01 3530912 ZNR UUUUU ZZH O 180912Z DEC 08 FM AMEMBASSY ABU DHABI TO RUEHC/SECSTATE WASHDC IMMEDIATE 1891 INFO RUEHDE/AMCONSUL DUBAI PRIORITY 8082 RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
UNCLAS SECTION 01 OF 02 ABU DHABI 001420
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PTER PGOV AE
SUBJECT: NOVEMBER 2008 MENAFATF PLENARY
ABU DHABI 00001420 001.2 OF 002
INTRODUCTION AND SUMMARY
------------------------
UNCLAS SECTION 01 OF 02 ABU DHABI 001420
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PTER PGOV AE
SUBJECT: NOVEMBER 2008 MENAFATF PLENARY
ABU DHABI 00001420 001.2 OF 002
INTRODUCTION AND SUMMARY
--------------
1. (SBU) The Middle East and North Africa Financial Action Task Force
(MENAFATF) held a plenary session (MENAFATF VIII),working group
meetings, and an FIU workshop from November 9-13, 2008 in Fujairah,
United Arab Emirates (UAE). Treasury Deputy Assistant Secretary for
Terrorist Financing and Financial Crimes Daniel Glaser headed the
U.S. interagency delegation. The delegation included representatives
from the Departments of the Treasury and State, and the Federal
Bureau of Investigation.
2. (SBU) During this Plenary, hosted by UAE as 2008 President, the
MENAFATF discussed the work plan and budget for 2009; adopted one
part of the Report of the Designated Non-Financial Business &
Professions Committee; adopted the Mutual Evaluation Working Group
Chairman's Report and the timeline of MENAFATF member countries'
mutual evaluations and follow-up reports; approved Libya's
application for MENAFATF membership and the World Customs
Organization application for MENAFATF observership; and discussed
upcoming conferences, training seminars and workshops to include an
assessors training workshop, a MENAFATF private sector dialogue, a
second ministerial-level meeting, a joint MENAFATF-FATF Plenary, and
a variety of other member country proposals. No mutual evaluation
reports or follow-up reports were presented or discussed in this
Plenary. Mr. Abdul Rahman Al Baker, Executive Director of the
Bahraini Financial Institutions Supervision Department at the Central
Bank of Bahrain, will be President of the MENAFATF for 2009. End
Introduction and Summary.
--------------
Miscellaneous Items
--------------
3. (SBU) Work Plan for 2009: The work plan for 2009 includes an annex
indicating tasks that have been accomplished, are currently underway,
and remain pending. During discussion of the work plan, Lebanon
emphasized the need to hold an assessors training as soon as
possible. It was agreed that a new strategy would be drafted for the
next three years and that attention would be paid to holding an
assessors training.
4. (SBU) Budget for 2009: The budget was adopted, though several
member countries expressed concern in the raising of member dues.
MENAFATF Executive Secretary Adel al-Qulish presented on the reasons
for increasing the budget. For the years 2008-2009, the MENAFATF
agreed to a 28 percent increase in the budget for Secretariat staff
salary increases and inflation adjustment.
5. (SBU) Report of the Designated Non-Financial Businesses &
Professions (DNFPBs) Committee: The Plenary decided to publish the
second part of the Report of the Working Group on DNFBPs entitled,
"DNFBPs in relation to AML/CFT." The first part of the report, which
reflects an overview of each member country's controls regarding
DNFBPs, was not adopted because only seven out of 17 member countries
responded to the questionnaire. The questionnaire will be
redistributed for response and the first part of the report will be
presented again in the May 2009 Plenary.
6. (SBU) Report of the Politically Exposed Persons (PEPs) Committee:
The Report of the Working Group on PEPs was not accepted by the
Plenary. Members felt the paper was not comprehensive and required a
deeper examination of PEPs in the region and the manner in which
governments and financial institutions address the issue. The
report, which has been in progress for two years, was postponed until
the next Plenary.
7. (SBU) Mutual Evaluation Working Group (MEWG) and MENAFATF Mutual
Evaluation Timeline: The Plenary adopted the MEWG Chairman's report
and the timeline or schedule for both member countries' MERs and
follow-up reports. The mutual evaluations of Jordan and Egypt and
the follow-up assessments of Bahrain, Mauritania, and Syria will be
presented at the May 2009 Plenary. Lebanon, Saudi Arabia, and
Algeria are scheduled to undergo a mutual evaluation prior to the
next Plenary.
8. (SBU) Technical Assistance & Typologies Working Group: The Plenary
adopted the Working Group Chairman's Report and the TATWG's report
entitled, "Guidance of Training Different Authorities in the field of
AML/CFT," which guides member countries on AML/CFT outreach to
appropriate governmental and private sector institutions. During
discussion of the reports, many members expressed their concern with
the lack of qualified assessors for mutual evaluations. The UAE,
Lebanon, and Algeria offered to host assessor training workshops. It
was agreed that the MENAFATF would organize a workshop for mid-2009.
9. (SBU) Proposal for the MENAFATF PSD: Lebanon proposed for the
second time that the MENAFATF launch a private sector dialogue. In
ABU DHABI 00001420 002.2 OF 002
the proposal, a working group would be established to reach out to
the private sector and establish a dialogue attached to each or every
other Plenary to discuss challenges in implementing AML/CFT controls.
The proposal would build on the current U.S.-Middle East and North
Africa Private Sector Dialogue (U.S.-MENA PSD). The majority of
MENAFATF members agreed to the concept of formalizing a dialogue with
the private sector. However, several members were uncomfortable with
a working group that would include private sector representatives and
requested that the structure of such a dialogue be reexamined and
redefined. It was decided that the Secretariat would explore the
FATF's private sector dialogue and propose a similar structure for
discussion at the May 2009 Plenary.
10. (SBU) Proposal for a Second Ministerial Meeting: 2008 MENAFATF
President Abdulrahim al Awadi (the head of the UAE FIU) proposed a
second ministerial meeting in order to brief key regional
decision-makers on the MENAFATF's successes, challenges, and future
developments. The MENAFATF budget would be an issue of particular
concern. The majority of member countries were hesitant to approve
the proposal because they did not feel the meeting was necessary.
The President requested that members submit potential agenda items
and the Secretariat would disseminate a draft agenda for discussion
at the next Plenary.
11. (SBU) Proposal for a Cooperative Fund for Training and Technical
Assistance in the MENAFATF: The Plenary adopted the proposal to
establish a fund that would support MENAFATF training workshops and
technical assistance for member countries.
12. (SBU) Proposal to host a joint Plenary with the FATF in 2009: The
member countries agreed to organize a joint Plenary with the FATF.
The MENAFATF discussed the proposal with the FATF Secretariat in May
2008 and the proposal was raised during the FATF Plenaries in June
2008 and October 2008. It was agreed that the Secretariat and new
MENAFATF President would explore possible dates for a joint Plenary
in 2009-2010.
13. (SBU) Application of Libya for MENAFATF membership: The Plenary
approved Libya's application for MENAFATF membership.
14. (SBU) Application of the World Customs Organization (WCO) for
MENAFATF observership: The Plenary approved the WCO's application for
MENAFATF observership.
15. (SBU) Application of Ukraine for MENAFATF observership: The
Plenary denied Ukraine's application for MENAFATF observership.
16. (SBU) The next MENAFATF Plenary meeting will be held the week of
May 17-21, 2009 in Manama, Bahrain.
OLSON
SENSITIVE
SIPDIS
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB
E.O. 12958: N/A
TAGS: EFIN ECON PTER PGOV AE
SUBJECT: NOVEMBER 2008 MENAFATF PLENARY
ABU DHABI 00001420 001.2 OF 002
INTRODUCTION AND SUMMARY
--------------
1. (SBU) The Middle East and North Africa Financial Action Task Force
(MENAFATF) held a plenary session (MENAFATF VIII),working group
meetings, and an FIU workshop from November 9-13, 2008 in Fujairah,
United Arab Emirates (UAE). Treasury Deputy Assistant Secretary for
Terrorist Financing and Financial Crimes Daniel Glaser headed the
U.S. interagency delegation. The delegation included representatives
from the Departments of the Treasury and State, and the Federal
Bureau of Investigation.
2. (SBU) During this Plenary, hosted by UAE as 2008 President, the
MENAFATF discussed the work plan and budget for 2009; adopted one
part of the Report of the Designated Non-Financial Business &
Professions Committee; adopted the Mutual Evaluation Working Group
Chairman's Report and the timeline of MENAFATF member countries'
mutual evaluations and follow-up reports; approved Libya's
application for MENAFATF membership and the World Customs
Organization application for MENAFATF observership; and discussed
upcoming conferences, training seminars and workshops to include an
assessors training workshop, a MENAFATF private sector dialogue, a
second ministerial-level meeting, a joint MENAFATF-FATF Plenary, and
a variety of other member country proposals. No mutual evaluation
reports or follow-up reports were presented or discussed in this
Plenary. Mr. Abdul Rahman Al Baker, Executive Director of the
Bahraini Financial Institutions Supervision Department at the Central
Bank of Bahrain, will be President of the MENAFATF for 2009. End
Introduction and Summary.
--------------
Miscellaneous Items
--------------
3. (SBU) Work Plan for 2009: The work plan for 2009 includes an annex
indicating tasks that have been accomplished, are currently underway,
and remain pending. During discussion of the work plan, Lebanon
emphasized the need to hold an assessors training as soon as
possible. It was agreed that a new strategy would be drafted for the
next three years and that attention would be paid to holding an
assessors training.
4. (SBU) Budget for 2009: The budget was adopted, though several
member countries expressed concern in the raising of member dues.
MENAFATF Executive Secretary Adel al-Qulish presented on the reasons
for increasing the budget. For the years 2008-2009, the MENAFATF
agreed to a 28 percent increase in the budget for Secretariat staff
salary increases and inflation adjustment.
5. (SBU) Report of the Designated Non-Financial Businesses &
Professions (DNFPBs) Committee: The Plenary decided to publish the
second part of the Report of the Working Group on DNFBPs entitled,
"DNFBPs in relation to AML/CFT." The first part of the report, which
reflects an overview of each member country's controls regarding
DNFBPs, was not adopted because only seven out of 17 member countries
responded to the questionnaire. The questionnaire will be
redistributed for response and the first part of the report will be
presented again in the May 2009 Plenary.
6. (SBU) Report of the Politically Exposed Persons (PEPs) Committee:
The Report of the Working Group on PEPs was not accepted by the
Plenary. Members felt the paper was not comprehensive and required a
deeper examination of PEPs in the region and the manner in which
governments and financial institutions address the issue. The
report, which has been in progress for two years, was postponed until
the next Plenary.
7. (SBU) Mutual Evaluation Working Group (MEWG) and MENAFATF Mutual
Evaluation Timeline: The Plenary adopted the MEWG Chairman's report
and the timeline or schedule for both member countries' MERs and
follow-up reports. The mutual evaluations of Jordan and Egypt and
the follow-up assessments of Bahrain, Mauritania, and Syria will be
presented at the May 2009 Plenary. Lebanon, Saudi Arabia, and
Algeria are scheduled to undergo a mutual evaluation prior to the
next Plenary.
8. (SBU) Technical Assistance & Typologies Working Group: The Plenary
adopted the Working Group Chairman's Report and the TATWG's report
entitled, "Guidance of Training Different Authorities in the field of
AML/CFT," which guides member countries on AML/CFT outreach to
appropriate governmental and private sector institutions. During
discussion of the reports, many members expressed their concern with
the lack of qualified assessors for mutual evaluations. The UAE,
Lebanon, and Algeria offered to host assessor training workshops. It
was agreed that the MENAFATF would organize a workshop for mid-2009.
9. (SBU) Proposal for the MENAFATF PSD: Lebanon proposed for the
second time that the MENAFATF launch a private sector dialogue. In
ABU DHABI 00001420 002.2 OF 002
the proposal, a working group would be established to reach out to
the private sector and establish a dialogue attached to each or every
other Plenary to discuss challenges in implementing AML/CFT controls.
The proposal would build on the current U.S.-Middle East and North
Africa Private Sector Dialogue (U.S.-MENA PSD). The majority of
MENAFATF members agreed to the concept of formalizing a dialogue with
the private sector. However, several members were uncomfortable with
a working group that would include private sector representatives and
requested that the structure of such a dialogue be reexamined and
redefined. It was decided that the Secretariat would explore the
FATF's private sector dialogue and propose a similar structure for
discussion at the May 2009 Plenary.
10. (SBU) Proposal for a Second Ministerial Meeting: 2008 MENAFATF
President Abdulrahim al Awadi (the head of the UAE FIU) proposed a
second ministerial meeting in order to brief key regional
decision-makers on the MENAFATF's successes, challenges, and future
developments. The MENAFATF budget would be an issue of particular
concern. The majority of member countries were hesitant to approve
the proposal because they did not feel the meeting was necessary.
The President requested that members submit potential agenda items
and the Secretariat would disseminate a draft agenda for discussion
at the next Plenary.
11. (SBU) Proposal for a Cooperative Fund for Training and Technical
Assistance in the MENAFATF: The Plenary adopted the proposal to
establish a fund that would support MENAFATF training workshops and
technical assistance for member countries.
12. (SBU) Proposal to host a joint Plenary with the FATF in 2009: The
member countries agreed to organize a joint Plenary with the FATF.
The MENAFATF discussed the proposal with the FATF Secretariat in May
2008 and the proposal was raised during the FATF Plenaries in June
2008 and October 2008. It was agreed that the Secretariat and new
MENAFATF President would explore possible dates for a joint Plenary
in 2009-2010.
13. (SBU) Application of Libya for MENAFATF membership: The Plenary
approved Libya's application for MENAFATF membership.
14. (SBU) Application of the World Customs Organization (WCO) for
MENAFATF observership: The Plenary approved the WCO's application for
MENAFATF observership.
15. (SBU) Application of Ukraine for MENAFATF observership: The
Plenary denied Ukraine's application for MENAFATF observership.
16. (SBU) The next MENAFATF Plenary meeting will be held the week of
May 17-21, 2009 in Manama, Bahrain.
OLSON