UAE TARGETING DRUG AND ILLICIT FINANCIAL FLOWS TO/FROM

UNCLAS ABU DHABI 000684 SENSITIVE SIPDIS STATE FOR SRAP, SCA/A, NEA/ARP, INL AND S/CT KABUL AND ISLAMABAD FOR DEA E.O. 12958: N/A TAGS: EFIN SNAR ETRD PGOV AF AE SUBJECT: UAE TARGETING DRUG AND ILLICIT FINANCIAL FLOWS TO/FROM AFGHANISTAN ¶1. (SBU) Summary: In meetings June 28 and 29, Central Bank and Ministry of Interior officials told visiting Staffdel Frantz the UAE is working with Afghanistan to disrupt illicit financing and drug trafficking. UAE officials stressed the importance of developing alternatives for Afghans currently involved in drug production and expressed appreciation for President Obama's "new strategy" for Afghanistan. One official urged that Afghan drug assets seized internationally be dedicated to funding Afghan development programs. End Summary. CENTRAL BANK EFFORTS -------------- ¶2. (SBU) UAE Central Bank Assistant Director and Head of the Anti-Money Laundering and Suspicious Cases Unit (AMLSCU) Abdelrahim Al Awadhi told visiting SFRC Chief Investigator Doug Frantz and Senior Investigator John Kiriakou that financial flows to terrorist groups in Afghanistan must be disrupted. Al Awadhi outlined the Central Bank's efforts to prevent money laundering and terrorist financing, including plans to require outbound cash declarations by the third quarter of 2009. Al Awadhi stressed that illicit Afghan drug production must be disrupted, as this is the primary revenue source for terrorists. The UAE Central Bank has provided some training for Afghan banking officials, including the head of Afghanistan's financial intelligence unit. Al Awadhi noted that MENA-FATF has targeted Afghanistan for technical assistance, but corruption and lack of capacity and infrastructure limits the effectiveness of training. COUNTER-NARCOTICS EFFORTS -------------- ¶3. (SBU) Ministry of Interior (MOI) Director General for Criminal Security Khamis Binsuwaif told Staffdel Frantz that the UAE enjoys strong counternarcotics cooperation with a number of countries, including the United States. As opium production in Afghanistan increases, the UAE has noticed a similar rise in drug-related cases. Binsuwaif highlighted three ways to disrupt the Afghan drug trade: 1) improve cooperation between countries affected by the drug trade, 2) dedicate any narcotics assets seized globally to Afghan development, and 3) identify economic alternatives for Afghan farmers. Binsuwaif said he offered technical assistance to Afghanistan during a positive meeting with Afghan counternarcotics czar Mohammed Daoud, but that communication was difficult and the UAE often relied on third parties like the United States. Turning to cash couriers, MOI officials said that it is challenging to prosecute drug traffickers who follow UAE cash declaration requirements. (Note: UAE law requires the declaration of cash in excess of AED 40,000 (USD 10,890). End Note.) To be successful, the UAE relies on evidence from the US and other partners. DUBAI PERSPECTIVE -------------- ¶4. (SBU) Dubai Police Deputy Chief Khamis Mattar Al Muzainah told Staffdel Frantz that the majority of the "large quantity" of drugs seized in Dubai is transiting to other destinations, thus coordination with foreign law enforcement is essential. Al Muzainah also reported having met with Afghan counterparts to discuss enhanced cooperation. Although Dubai Police have a dedicated financial crimes unit, money laundering investigations are coordinated with the UAE Central Bank AMLSCU. OLSON