SENEGAL/TERRORISM FINANCING LAW - MORE CONCERNS

S E C R E T DAKAR 000866 SIPDIS STATE FOR AF/RSA, AF/EPS, AF/W TREASURY FOR RHALL, DPETERS USUN VIENNA FOR FINCIN FBI FOR OIO STATE PLEASE PASS MCC E.O. 12958: DECL: 07/21/2028 TAGS: PTER KTFN ECON PGOV PREL KCOR SG SUBJECT: SENEGAL/TERRORISM FINANCING LAW - MORE CONCERNS RAISED REF: DAKAR 824 Classified By: CHARGE D'AFFAIRES, A.I. JAY T. SMITH, FOR REASON 1.4 (B) AND (D). ¶1. (S) Summary: Despite professional and perhaps personal risk, Senegal's Minister of Finance, via the IMF Resrep, wants the USG to know that President Wade does not want to move forward with required counter-terrorism financing legislation. Wade is reportedly worried about the enhanced investigative powers that would be granted to Senegal's Financial Intelligence Unit (FIU). This information tracks perfectly with the similar concern raised by the FIU in reftel. End Summary. CONFIRMING WADE'S OPPOSITION TO CTF LEGISLATION -------------- -- ¶2. (S) During a meeting on July 17 with Econ Counselor, IMF Resrep Alex Segura said he had a "confidential message" to pass on from Senegal's Minister of Finance Abdoulaye Diop who wanted the USG to know that President Wade did not want the West African Economic and Monetary Union (WAEMU/UEMOA) uniform counter terrorism financing (CTF) directive to be ratified in Senegal. According to Segura (strictly protect), Diop (also strictly protect) said that when President Wade and his advisors reviewed the draft legislation, they were alarmed that it would grant robust investigative powers to Senegal's Financial Intelligence Unit (FIU),the CENTIF, and therefore could subject deals within the Presidency to intense scrutiny. Minister Diop did not/not indicate that President Wade or his inner-circle were afraid of CENTIF investigations for terrorism-related reasons, rather, it was out of concern for corruption and perhaps money laundering. ¶3. (S) Segura, again relating what Diop shared about Wade's response to the draft legislation, said that President Wade viewed the President of the CENTIF, Mr. Ngouda Fall Kane, as "too independent," and "too determined" in his investigations. Diop believes that President Wade understands Senegal's UEMOA treaty obligations to ratify the law, but that Wade will use "whatever stalling methods are necessary" to avoid presenting the draft legislation to the National Assembly. ¶4. (S) According to Segura, Minister Diop wanted the USG to know about this situation, because "only the U.S." could change President Wade's mind. Diop was apparently very concerned about President Wade possibly finding out that he had alerted the USG to this situation, and felt it was even a risk should it be known that the Segura passed the message because Wade and his advisors would then assume the information originated with Diop. COMMENT/RECOMMENDATION -------------- ¶5. (S) Minister Diop and Mr. Kane are sources of the highest reliability, both of whom have taken professional and personal risk to alert us to President Wade's reluctance to fulfill his duty and enact CTF legislation. They do so out of a genuine concern for the integrity of Senegal's public finances and the need for an effective and independent FIU. While needing to fully protect these sources, senior USG officials can raise the issue of the UEMOA CFT directive since (as outlined in Reftel) post has confirmed with the regional central bank (BCEAO),that the directive has been passed to member states and the BCEAO expects rapid ratification, especially from Senegal, which has routinely proclaimed itself the regional leader on financial integrity, and a close U.S. ally in the war on terrorism. Bernicat SMITH