DJIBOUTI: EFFORTS TO FIGHT TERRORIST FINANCE

UNCLAS SECTION 01 OF 02 DJIBOUTI 000554

SIPDIS

DEPARTMENT FOR AF/E, S/CT AND EEB/ESC/TFS
LONDON, PARIS, ROME FOR AFRICA-WATCHER
CJTF-HOA FOR POLAD

E.O. 12958: N/A
TAGS: KTFN KPAO PGOV PTER ECON EFIN ETTC DJ
SUBJECT: DJIBOUTI: EFFORTS TO FIGHT TERRORIST FINANCE


1. SUMMARY: During a May 28 seminar co-sponsored by Post and the
Central Bank of Djibouti, over thirty participants from the Central
Bank, local commercial banks, money transfer operations, and the
GODJ Technical Counterterrorism Committee discussed Djibouti's
progress in combating terrorist finance. The seminar featured a
keynote address from Africa Regional Services (ARS) speaker Robert
Smolik, an overview of GODJ action to date on terrorist finance
issues from Djibouti's Financial Intelligence Unit, and lively
discussion among participants. The Central Bank, which had
specifically requested that the visiting ARS Speaker address this
topic, also invited the participants and hosted the event. The
Central Bank and several participants thanked the USG for
collaborating on the workshop, and local state-run media featured
prominent coverage of the event. END SUMMARY.


2. To open the half-day workshop, ARS Speaker Smolik gave a brief
introduction on the subject of combating terrorist finance,
including an overview of USG action and objectives in the area.
Alongside Smolik's presentation, the chief of Djibouti's Service de
Renseignements Financiers (SRF, the equivalent of a Financial
Intelligence Unit) summarized Djibouti's actions to date in
combating terrorist finance.


3. Djibouti's SRF Chief outlined some of the legislative and
administrative tools Djibouti has established to combat money
laundering and terrorist finance. After the creation of a National
Counterterrorism Committee in October 2001, the GODJ adopted a
National Action Plan calling for 1) the ratification of all
international conventions regarding terrorism, 2) the integration of
international norms into national law, and 3) the adoption of a
national anti money laundering law.


4. Djibouti made progress on this action plan by passing an anti
money laundering law in December 2002, and by ratifying nine
additional international instruments against terrorism between 2004
and 2006. Djibouti is now party to twelve international
anti-terrorism instruments, including the:

--1963 Aircraft Convention, ratified 1992
--1970 Unlawful Seizure Convention, ratified 1992
--1971 Civil Aviation Convention, ratified 1992
--1973 Diplomatic Agents Convention, ratified 2004
--1979 Hostages Convention, ratified 2004
--1980 Nuclear Materials Convention, ratified 2004
--1988 Airport Protocol, ratified 2004
--1988 Maritime Convention, ratified 2004
--1988 Fixed Platform Protocol, ratified 2004
--1991 Plastic Explosives Convention, ratified 2004
--1997 Terrorist Bombing Convention, ratified 2004
--1999 Terrorist Financing Convention, ratified 2006


5. As Djibouti's SRF Chief pointed out, the GODJ has yet to ratify
four additional instruments:

--2005 Nuclear Terrorism Convention
--2005 Amendments to the Nuclear Materials Convention
--2005 Protocol to the Maritime Convention
--2005 Protocol to the Fixed Platform Protocol


6. Djibouti's two newest counterterrorism tools are the National
Technical Counterterrorism Committee, established February 2007, and
the Service de Renseignements Financiers (SRF),established March

2006. The SRF receives declarations of cash transactions over 1
million DJF (USD 5650),and of other suspicious transactions. Both
financial and non-financial institutions must declare transactions
whose "complex and inhabitual character" makes them suspect. The
SRF, which follows strict confidentiality rules, has the ability to
freeze transactions for two to eight days.


7. Following the SRF Chief's presentation, ARS Speaker Smolik
facilitated an animated discussion among participants. Topics
included the mandate to "know your customer," and the need for
public education about regulations governing financial transactions.
While some participants said that it was now "normal" for customers
to show identification when doing financial business, some
money-transfer company representatives said that it would help their
businesses--which operate in a competitive environment and have few
staff members to meet regulatory requirements--if there was a clear
public information campaign about the "standard" requirement to show
identification when making a money transfer.


8. COMMENT: By providing an expert, French-speaking ARS presenter,
Post was able to help the Central Bank bring together a wide variety
of stakeholders to review Djibouti's progress on combating terrorist
finance, and to discuss ideas for future action. Through direct
participation and press coverage, the seminar gave the GODJ a chance
to showcase recent progress, while at the same time raising
awareness of the need for continued action. END COMMENT.

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