TURKMENSITAN'S RESPONSE TO LONDON PLENARY SESSION

UNCLAS SECTION 01 OF 03 ASHGABAT 001359 SIPDIS SENSITIVE STATE FOR SCA/CEN E.O. 12958: N/A TAGS: PREL PTER ECON KNNC TX SUBJECT: TURKMENSITAN'S RESPONSE TO LONDON PLENARY SESSION OF THE FINANCIAL ACTION TASK FORCE REF: ASHGABAT 317 ¶1. (U) Sensitive but unclassified. Not for public Internet. ¶2. (U) The Ministry of Foreign Affairs sent the following diplomatic note, dated September 29, 2008, addressed to the Ministries of Foreign Affairs of countries-participants of the Financial Action Task Force (FATF): Begin Text: The Ministry of Foreign Affairs of Turkmenistan presents its compliments to the Ministries of Foreign Affairs of countries-participants of the Financial Action Task Force (FATF) and has the honor to inform that, according to the information available at the Turkmen Side, management of FATF intends to re-confirm its public statement of February 28, 2008, regarding the risks, money-laundering and terrorism financing posed by Uzbekistan, Iran, Pakistan, Turkmenistan, San Tome and Principe, and northern part of Cyprus, based on the resume of London plenary session held on June 18-20, 2008. In this connection, the Turkmen Side declares about unacceptability of such statements and has the honor to inform the following. Combating money laundering and terrorism financing becomes more and more actual problem nowadays, and Turkmenistan, relying on the experience of other countries and recommendations of international organizations, takes necessary steps to establish the national system to combat money laundering and terrorism financing. In order to create an effective system against money laundering and terrorism financing, based on the recommendations of FATF and considering the peculiarities of the region as well as admitting importance of the broad international cooperation in this area, Turkmenistan has joined the regional Eurasian Group on Combating Money Laundering and Terrorism Financing as an observer in December ¶2007. At present time, a question is raised on Turkmenistan,s consent to make the FATF mission's report available to other donors rendering technical assistance. Taking necessary measures for improving the national system to combat money laundering and terrorism financing, Turkmenistan studies the experience of other countries on implementation of international law in this area to the national legislation. With this purpose, under the aegis of the international organizations, several seminars were held. �0A;Among them, the noticeable example is "Role and functions of Financial Intelligence Unit" seminar attended by the representatives of the World Bank, International Monetary Fund, OSCE, UNODC, Eurasian Group on Combating Money Laundering and Terrorism Financing, as well as FIU of the Russian Federation, Ukraine and Belarus. The policy led by the President of Turkmenistan demonstrates the world community the commitment to the internationally accepted norms and requirements. In this context, priority is given to making the legislation consistent with the international requirements in regard to building the national system on combating money laundering and terrorism financing. Involved relevant state authorities aim at introducing this system and training the specialists in this area. Along with this, cooperation with the international financial institutions is underway to provide specialist training for improvement of the staff potential, as well as for development and enhancement of the available system on combating money laundering and terrorism financing. ASHGABAT 00001359 002 OF 003 Attached to this note please find the additional information on legislative and international legal steps taken by Turkmenistan. The Ministry of Foreign Affairs of Turkmenistan avails itself of this opportunity to renew to the Ministries of Foreign Affairs of countries-participants of the Financial Action Task Force (FATF) the assurances of its highest consideration. Enclosure: as stated above. Ashgabat, September 26, 2008 INFORMATION The Law Of Turkmenistan "On combating terrorism" of August 15, 2003, determines the legal and organizational basis for combating terrorism in Turkmenistan, the procedures for activity and interaction of the state bodies, organizations of all forms of ownership, and public organizations to combat terrorism, as well as rights, obligations and guarantees of the citizens in connection with implementation of terrorism combat. The Law determines that, financing of knowingly terrorist organization, terrorist group, terrorist, or any other assistance thereto, is accepted as one of the terrorist activity type scaled to such actions as distribution or propaganda of terrorism ideology, organization, planning, preparing and realization of terrorist act, incitement to terrorist act, violence against physical persons and organizations, destruction of material facilities for terrorist purposes, etc. It is established by the Law that Turkmenistan, in line with its national legislation and norms of the international law, will prevent and terminate terrorist financing, block the assets and other financial means, deposits, economic resources and material values of persons that conduct or manage to conduct terrorism acts or assist therein; of entities directly or indirectly owned or controlled by such persons, as well as persons and entities acting on behalf of or under directions of such persons and entities, including the assets received or obtained, or with the use of property directly or indirectly owned or controlled by such persons or related persons and entities. The Law determines the competency of the state bodies directly combating terrorism, including Prosecutor General,s Office of Turkmenistan, which, in line with its competency, performs control over the strict and consistent observation of normative and legal acts of Turkmenistan. Prosecutor General,s Office of Turkmenistan facilitates elimination of legislation violations, reasons and conditions causing terrorist acts, make investigation of cases of terrorism nature. Prosecutor General of Turkmenistan and subordinated prosecutors will conduct supervision over observation of laws while combating terrorism. The Criminal Code of Turkmenistan determines criminal liability for crimes of terrorist nature, such as article 130, 170, part 1 article 176, 271-273 of the Criminal Code of Turkmenistan. The term "money (monetary assets) laundering" is not envisaged by the legislation of Turkmenistan. However, the Criminal Code of Turkmenistan determines criminal liability for actions related with illegal/ill gotten money legalization (money laundering),that is financial operations and other transactions with knowingly illegal/ill gotten money and other property, as well as using ASHGABAT 00001359 003 OF 003 the mentioned assets and property for entrepreneurship or other economic activity, including if such actions are made: repeatedly; by group of people on previous concert or organized group; by person using his official work status are punished by fine, correctional labor, imprisonment with property confiscation or without it. For combating money laundering and terrorism financing the Prosecutor General,s Office of Turkmenistan within its competency will governed by the Constitution of Turkmenistan and the Law of Turkmenistan "On Prosecutor,s Office of Turkmenistan"; make procurator's supervision over the strict and consistent observation in Turkmenistan of laws, decrees of President and the Cabinet of Ministers by the state governance and control bodies, local executive and self-governance bodies, enterprises, organizations and associations of all forms of ownership, entrepreneurs and public organizations; in cases envisaged by the legislation of Turkmenistan, investigate the crime and institute criminal proceedings against persons committing a crime. While combating money laundering and terrorism financing with international element, the Prosecutor General's Office of Turkmenistan will governed by multipartite international agreements (Conventions) of January 22, 1993, on combating terrorism financing, legal assistance and legal relations for civil, domestic and criminal cases, as well as bilateral interstate agreements on legal assistance and legal relations for civil, domestic and criminal cases. Turkmenistan is a party of the following Conventions: "Against Corruption", "Against Illicit Traffic of Narcotic Drugs and Psychotropic Substances", "Against Organized Crime", "For Suppression of Terrorist Bombings", "Against the Taking of Hostages", "For the Suppression of Unlawful Seizure of Aircraft", etc. The Prosecutor General,s Office of Turkmenistan concluded interagency agreements on legal issues and about the legal assistance with the Prosecutor General,s Offices of the CIS countries. The Prosecutor General's Office of Turkmenistan is an observer of the Coordinate Council of General Prosecutors of CIS countries, and within this performs experience exchange and discusses various issues related to combating money laundering and terrorism financing. The Scientific-Methodology Council of the Prosecutor General's Office of Turkmenistan has several times reviewed and introduced relevant notes and proposals to the draft Law "On combating money laundering". ¶3. (SBU) COMMENT: In his closing remarks at the Workshop on Anti-Money Laundering and Financial Intelligence Units held in Ashgabat March 4-5, Head of the CBT's Supervision Department Halmurad Orazov called for Turkmenistan to join the Eurasian Group as a full member (reftel). The World Bank/UNODC's Global Anti-Money Laundering Program Mentor said at the time that Turkmenistan's next steps should include adoption of an anti-money laundering law authorizing establishment of a financial intelligence unit and reviewing other laws (criminal procedure code, and laws on banking, customs, insurance, securities, casinos, investment, etc.) for potential conflicts. The above response is designed to address criticism from the international community about Turkmenistan's lack of progress in creating an anti-money laundering regime. END COMMENT. CURRAN