GOK HOSTS FINANCIAL INTELLIGENCE UNIT

C O N F I D E N T I A L SECTION 01 OF 02 KUWAIT 000390

SIPDIS

SIPDIS

STATE FOR NEA/ARP; EEB; AMMAN FOR JPARKER

E.O. 12958: DECL: 04/03/2018
TAGS: EFIN ETTC KCRM PREL PTER KTFN KU
SUBJECT: GOK HOSTS FINANCIAL INTELLIGENCE UNIT
IMPLEMENTATION SEMINAR

Classified By: CDA Alan G. Misenheimer for reasons 1.4 (b) and (d)


1. (C) Summary and Comment: From March 31-April 2, 2008,
the Central Bank of Kuwait (CBK) in cooperation with
U.S. Department of Treasury and the U.S. Department of
Justice hosted a Financial Intelligence Unit (FIU)
Implementation Seminar. The three-day event was attended by
53 GOK officials including representatives from the Central
Bank (CBK),Ministry of Interior (MOI),Ministry of Justice
(MOJ),Ministry of Commerce and Industry (MOCI),and the
Public Administration of Customs. The conference was
organized pursuant to the GOK's request for technical
assistance in anti-money laundering/combating the financing
of terrorism (AML/CFT) with the goal of creating an FIU that
meets international standards. Although the substantive and
results-oriented seminar elicited the active engagement of
mid-level GOK officials, the lack of participation by key
decision-makers and the continued absence of strong AML/CFT
legislation mean that Kuwait's FIU will continue to limp
along with limited capabilities and marginal effectiveness
for the foreseeable future. Post will build on the lessons
learned from the seminar to promote FIU reform proposals to
GOK decision-makers and arrange follow-on training
opportunities. End Summary and Comment.

CBK hosts FIU Implementation Seminar
--------------


2. (SBU) CBK hosted an FIU Implementation Seminar on March
31-April 2, in collaboration with the U.S. Department of
Treasury's Office of Technical Assistance (OTA) and the U.S.
Department of Justice's Office of Overseas Prosecutorial
Development, Assistance, and Training (OPDAT). The three-day
event was attended by 53 GOK officials from the Central Bank
(CB, Ministry of Interior (MOI),Ministry of Justice (MOJ),
Ministry of Commerce and Industry MOCI) and the Public
Administration of Customs. During his opening remarks, CBK
Executive Director, Supervision Sector, Ibrahim Al-Qathi
asserted that the seminar shows Kuwait's eagerness to lay
down principles that will establish a more effective system
to combat money laundering and terrorism financing and noted
that the FIU is working to increase its role in supervising
suspicious money transfers. The goals of the seminar were
two-fold: 1) to assist in developing an FIU implementation
plan, and 2) to establish consensus among the various parties
of the National Committee on AML/CFT on the proper roles and
responsibilities of the FIU, Office of Public Prosecutor
(OPP) and other entities in the national AML/CFT regime. The
seminar was facilitated by U.S. Department of Treasury
Resident Enforcement Advisor-Amman Joe Parker and included
instructors from Treasury, Justice, and the Financial
Intelligence Center (FinCEN).


3. (SBU) Topics included best practices in FIU organizational
development, organizational structures, staffing plans,
budgetary considerations, technology requirements,
information sources, report formats and interagency
cooperation and referral mechanisms. The final day of the
seminar included a group exercise, in which the participants
were asked to assess problems with Kuwait's current FIU and
suggest what measures should be taken in order to bring
Kuwait's FIU up to international standards.

Positive impact on attendees, but decision-makers absent
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4. (C) While the USG organizers/instructors were disappointed
that the seminar was attended by working-level staff rather
than key decision-makers (despite a concerted effort on the
part of emboffs and instructors to shape the list of invitees
prior to the event, and despite some personal cajoling by the
CBK governor at the request of the CDA),overall the seminar
represented a step forward insofar as the broad array of
mid-level officials in attendance agreed on Kuwait's need for
a more robust and independent FIU. They also recognized the
need for better cooperation among law enforcement and
intelligence agencies, and all agreed (other than Central
Bank representatives) that the FIU should be relocated
outside of the Central Bank. Most importantly, all attendees
agreed on the need for the passage of a more powerful AML/CFT
law.

Next Steps
--------------


5. (SBU) Following the three-day event, emboffs and
instructors agreed on the following course of action:

KUWAIT 00000390 002 OF 002



--Embassy Kuwait will meet with the Central Bank Governor
Shaykh Salem Abdulaziz Al Sabah and other senior officials
from Kuwait's National Committee on AML/CFT to provide a
readout of the FIU Seminar, to stress the importance of more
active involvement by senior officials including members of
the National Committee, to urge GOK political endorsement for
a strengthened FIU and to urge passage of the draft law on
AML/CFT.

--Dependent on the outcome of the meetings mentioned above,
OTA will return to Kuwait at the request of post for
follow-on meetings with key GOK officials on the next steps
to create an independent, effective FIU that will meet
international standards.

--Embassy Kuwait will work with OTA and U.S. Customs
officials to consider other targeted training opportunities
to help build on the momentum of the workshop and hold a
regional Financial Investigative Techniques Course in Kuwait,
as soon as is practical. The two-week course should include
approximately 35 representatives from Kuwait, UAE and Jordan
and will be facilitated by OTA and a team of 4-5 instructors
from Treasury, OPDAT and U.S. Customs.

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For more reporting from Embassy Kuwait, visit:
http://www.state.sgov.gov/p/nea/kuwait/?cable s

Visit Kuwait's Classified Website:
http://www.state.sgov.gov/p/nea/kuwait/
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Misenheimer