Identifier
Created
Classification
Origin
09ADDISABABA752
2009-04-01 12:38:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Addis Ababa
Cable title:
CENTRAL BANK EASES REMITTANCE FLOWS, MOVING AML EFFORTS
how-toVZCZCXRO6346 PP RUEHROV DE RUEHDS #0752 0911238 ZNR UUUUU ZZH P 011238Z APR 09 FM AMEMBASSY ADDIS ABABA TO RUEHC/SECSTATE WASHDC PRIORITY 4272 INFO RUCNIAD/IGAD COLLECTIVE PRIORITY RUEPADJ/CJTF HOA PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RUEKDIA/DIA WASHINGTON DC PRIORITY RHMFIUU/HQ USCENTCOM MACDILL AFB FL PRIORITY RUEKJCS/JOINT STAFF WASHINGTON DC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC
UNCLAS ADDIS ABABA 000752
SENSITIVE
SIPDIS
TREASURY FOR OTA - LINDA DUBIEL
E.O. 12958: N/A
TAGS: ECON EFIN PREL ET
SUBJECT: CENTRAL BANK EASES REMITTANCE FLOWS, MOVING AML EFFORTS
UNCLAS ADDIS ABABA 000752
SENSITIVE
SIPDIS
TREASURY FOR OTA - LINDA DUBIEL
E.O. 12958: N/A
TAGS: ECON EFIN PREL ET
SUBJECT: CENTRAL BANK EASES REMITTANCE FLOWS, MOVING AML EFFORTS
1. (U) On 26 March 2009, EconOff met with the National Bank of
Ethiopia's (NBE, Ethiopia's central bank and the regulator of all
private banks in country) legal department head Kibre Moges to
discuss reports claiming that the Government of Ethiopia (GoE) had
relaxed the process for international remittance transfers by
Ethiopian nationals from abroad. The media reported in mid-February
that the NBE had issued a directive allowing remittances from any
source, rather than requiring correspondent banking relationships
with source banks. Moges indicated that despite the recent press
reports, NBE had issued no new directives regarding remittances.
Moges continued that NBE had eased the process of remittances prior
to the press reports, but had done so without working counter to
anti-money laundering/countering terrorist financing (AML/CFT)
efforts.
2. (U) Moges indicated that in order to increase foreign currency
reserves, NBE had lifted all processing fees and charges associated
with the transfer of remittances. Further, NBE had issued a press
release stating that the transfer process would become more
efficient. Moges was very clear that the NBE directive published in
2006 (FXD/30/2006) regarding the provisions for international
remittance services had not been altered or circumvented by NBE's
public statements. Instead, Moges suggested that the public
statements had been designed to increase public awareness of the
efforts NBE was undertaking to ease the remittance process in order
to increase the flow of foreign currency into Ethiopia.
3. (U) Separately, Moges did indicate that Prime Minister Meles
Zenawi had directed NBE to prioritize efforts to finalize adopting
still draft AML/CFT regulations into law. Though anti-money
laundering legislation had previously been added to Ethiopia's
criminal code, the government has made no progress toward completing
the AML/CFT laws. Moges said that NBE had shared the draft law with
commercial banks for comment in late March and she expected the
House of People's Representatives to have ratified the laws by circa
late-May 2009.
COMMENT
--------------
4. (SBU) We are encouraged by Moges's confirmation that NBE has not
eroded its limited existing AML/CFT safeguards to attract additional
remittances. Still, the NBE decision to forego desperately needed
government revenue, in the form of fees, in order to attract
additional remittances does shed light on how dire the government
perceives the current foreign exchange crisis to be. It also
suggests that the government does not have a more lasting long-term
solution to the crisis in mind. Separately, the fact that the Prime
Minister became involved in pressing for finalization of an AML/CFT
regime suggests that the Embassy's continued engagement with his
chief economic officer -- and the Prime Minister himself -- may be
beginning to show progress.
YAMAMOTO
SENSITIVE
SIPDIS
TREASURY FOR OTA - LINDA DUBIEL
E.O. 12958: N/A
TAGS: ECON EFIN PREL ET
SUBJECT: CENTRAL BANK EASES REMITTANCE FLOWS, MOVING AML EFFORTS
1. (U) On 26 March 2009, EconOff met with the National Bank of
Ethiopia's (NBE, Ethiopia's central bank and the regulator of all
private banks in country) legal department head Kibre Moges to
discuss reports claiming that the Government of Ethiopia (GoE) had
relaxed the process for international remittance transfers by
Ethiopian nationals from abroad. The media reported in mid-February
that the NBE had issued a directive allowing remittances from any
source, rather than requiring correspondent banking relationships
with source banks. Moges indicated that despite the recent press
reports, NBE had issued no new directives regarding remittances.
Moges continued that NBE had eased the process of remittances prior
to the press reports, but had done so without working counter to
anti-money laundering/countering terrorist financing (AML/CFT)
efforts.
2. (U) Moges indicated that in order to increase foreign currency
reserves, NBE had lifted all processing fees and charges associated
with the transfer of remittances. Further, NBE had issued a press
release stating that the transfer process would become more
efficient. Moges was very clear that the NBE directive published in
2006 (FXD/30/2006) regarding the provisions for international
remittance services had not been altered or circumvented by NBE's
public statements. Instead, Moges suggested that the public
statements had been designed to increase public awareness of the
efforts NBE was undertaking to ease the remittance process in order
to increase the flow of foreign currency into Ethiopia.
3. (U) Separately, Moges did indicate that Prime Minister Meles
Zenawi had directed NBE to prioritize efforts to finalize adopting
still draft AML/CFT regulations into law. Though anti-money
laundering legislation had previously been added to Ethiopia's
criminal code, the government has made no progress toward completing
the AML/CFT laws. Moges said that NBE had shared the draft law with
commercial banks for comment in late March and she expected the
House of People's Representatives to have ratified the laws by circa
late-May 2009.
COMMENT
--------------
4. (SBU) We are encouraged by Moges's confirmation that NBE has not
eroded its limited existing AML/CFT safeguards to attract additional
remittances. Still, the NBE decision to forego desperately needed
government revenue, in the form of fees, in order to attract
additional remittances does shed light on how dire the government
perceives the current foreign exchange crisis to be. It also
suggests that the government does not have a more lasting long-term
solution to the crisis in mind. Separately, the fact that the Prime
Minister became involved in pressing for finalization of an AML/CFT
regime suggests that the Embassy's continued engagement with his
chief economic officer -- and the Prime Minister himself -- may be
beginning to show progress.
YAMAMOTO