AZERBAIJAN: REQUEST FOR TECHNICAL ASSISTANCE;

S E C R E T SECTION 01 OF 02 BAKU 000938 SIPDIS DEPT FOR EUR/CARC E.O. 12958: DECL: 12/03/2029 TAGS: AJ ECON EFIN PREL PTER SUBJECT: AZERBAIJAN: REQUEST FOR TECHNICAL ASSISTANCE; UPDATE ON ANTI-MONEY LAUNDERING/COUNTER TERRORISM FINANCING LAW Classified By: Political Economic Counselor Rob Garverick, Reasons 1.4 b and d. ¶1. (C) SUMMARY: On November 06 2009, the leadership of the Government of Azerbaijan,s (GOAJ) Financial Investigative Unit (FIU) organized a meeting with EmbOffs to provide an update on the Anti-Money Laundering/Counter Terrorism Financing Law (AML/CTF),as well as to request technical assistance from the USG. This meeting, once again, demonstrated a level of seriousness regarding the issue. As follow up, on November 17, the Deputy Director of the FIU, Anar Salmanov, emailed the Embassy a soft copy of the FIU's technical assistance request. Meeting with FIU -------------- ¶2. (U) On November 06, Adishirin Gasimov, Director of the FIU, and Salmanov came to the Embassy to discuss an update on the AML/CTF law. During this meeting, they provided EmbOffs with a brief overview on the AML/CTF law and progress on establishing the FIU. Gasimov commented that the employees of the FIU would account for 15 percent of the Central Bank,s workforce. Gasimov told EmbOffs that the FIU recently adopted an action plan and submitted it to MONEYVAL for their review. Both the FIU Director and Deputy Director thought that this action plan would bring the AML/CTF law into conformity with United Nations and other international conventions; they also provided details regarding capacity building plans for the FIU. The action plan was approved October 21, however, Gasimov said they would be happy to incorporate comments from the USG. Salmanov gave EmbOffs both hard and soft copies of the action plan. ¶3. (U) During the meeting, the FIU reps also provided a draft copy of changes and amendments they are proposing to some legislative acts in order to improve the AML/CTF law. It was their assessment that with these changes, the GOAJ,s AML/CTF law would conform to all 40 9 Financial Action Task Force (FATF) agreements. In addition, they thought that it brought the national legislation into conformity with international standards. Again, the FIU management team provided the draft law to EmbOffs and requested USG comments and suggestions. ¶4. (U) The FIU representatives said they hoped to get the law passed through parliament by the end of December 2009. It was their hope that this would send a positive signal to FATF that the GOAJ was serious about establishing the FIU and creating an effective AML/CTF law. Because of their close cooperation with the USG in this process, they requested USG support during the February 2010 FATF meeting. Gasimov admitted that the newly established service may not be perfect, but expressed a keen interest in cooperating with the USG in the future to improve it. Technical Assistance Request -------------- ¶5. (U) During the meeting, Gasimov detailed briefly the GOAJ request for technical assistance. On November 17 Salmanov sent a soft copy of the technical assistance request via email. They specifically requested technical assistance to improve the legal framework in the AML/CTF area, establish information systems, build capacity for AML/CTF stakeholders, and develop a mid-term strategy plan for the FIU. Comment -------------- ¶6. (C) Embassy Baku,s goal in this process is to assist the GOAJ in implementing a successful AML/CTF law. Although the GOAJ has been slow to do so, they continue to make progress and seem to have become more serious about implementation. There have been many signals demonstrating a change in attitude. For the past year, it has been difficult to meet with the GOAJ on this subject. For the second time in two months, the GOAJ requested a meeting with the Embassy. Furthermore, they came to the meeting prepared with concrete requests. First, they brought two new documents, an action plan and draft of amendments to the AML/CTF law for which they requested USG comments. At first blush, the DOJ rep assessed the draft changes to the law to be substantial and significant. Both the law and action plan have been sent to the DOJ for comments. Furthermore, a few weeks later, the GOAJ surprised EmbOffs by sending a soft copy request for BAKU 00000938 002 OF 002 technical assistance, detailing all the perceived requirements to create a successful FIU. EmbOffs forwarded this request to Department of Treasury and USAID for their comments. Overall, the GOAJ seems to be eager now to cooperate with the USG on this topic. While this is likely in response to the looming FATF assessment, post sees this as a unique opportunity to achieve progress and recommends that we be as helpful and responsive as possible. LU