This record is a partial extract of the original cable. The full text of the original cable is not available.

281353Z Feb 06

UNCLAS RABAT 000356 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG, S/CT, EB, AND INL 
 
E.O. 12958: N/A 
TAGS: EFIN PTER PGOV MO
SUBJECT: AML:  PROSPECTS FOR PARLIAMENTARY PASSAGE 
 
 
(U)  This message is sensitive but unclassified.  Please 
protect accordingly. 
 
¶1. (SBU)  Summary:  Although the controversial draft bill has 
been languishing in interministerial vetting for three years, 
Government of Morocco (GOM) officials say the government will 
push through parliament new anti-money laundering (AML) 
legislation this spring.  Citing a full legislative agenda 
and lack of proper political preparation, opposition 
parliamentarians are doubtful an AML law will be passed. 
Increasingly, signs are pointing to a government campaign to 
introduce into parliament the overdue AML bill in the 
foreseeable future.  However, it is not unusual for sensitive 
or controversial legislation -- like AML -- to experience 
delays.  End summary. 
 
¶2.  (SBU)  GOM officials confidently tell econoffs that a 
draft anti-money laundering bill that has been languishing in 
interministerial vetting for more than three years will be 
introduced into and passed by parliament this Spring.  The 
draft legislation, the key missing piece for Morocco's 
counter-terrorism finance legal framework, will establish a 
financial intelligence unit, provide new powers for freezing 
and seizing assets, and will require financial institutions 
to report suspect transactions.  Unsurprisingly, in a country 
where the informal sector accounts for an estimated 40 
percent of employment and employment and where the 
politically volatile northern regions depend on the lucrative 
hash trade for their livelihood, the bill has proven 
controversial and unpopular. 
 
¶3.  (SBU)  Recently the Prime Minister resolved an internal 
dispute over whether the FIU should reside in the Ministry of 
Finance or at the Central Bank.  It will be installed in the 
Prime Minister's Office.  A GOM official responsible for 
preparing draft legislation for approval by cabinet (a 
prerequisite for presentation to parliament) told emboffs 
that the Secretariat General of Government (an OMB-like 
entity) had distributed a final draft to 60 key officials for 
review and approval.  Finance Ministry officials confirmed 
their impression that the cabinet will consider the draft law 
in the near future.  A senior advisor to the Minister of 
Justice told EconCouns that the government would aggressively 
push through the AML bill in the early days of the 
legislative session that begins in April.  He rejected 
naysayers' claims that Members of Parliament (MPs) would 
block it or that the cabinet would fail to approve the bill. 
 
¶4.  (SBU)  Opposition parliamentarians reject the GOM's 
optimistic claims.  They say the government has not 
appropriately prepared MPs or the Moroccan people for the 
changes an AML law will bring.  A Socialist Party MP who 
represents Marrakech and sits on the Finance Committee told 
EconCouns she doubted the bill would be presented in 
parliament in 2006.  Noting the very full agenda of priority 
issues (but unable to name more than a few, and mentioning 
the already approved annual budget), an MP who represents a 
northern Morocco district told EconCouns that the 
parliamentary calendar could not accommodate the AML bill 
this year. 
 
¶5.  (SBU)  Comment:  After a long silence on the subject, the 
Moroccan media, particularly the French language financial 
press, began running positive news stories on the AML bill 
and GOM efforts to combat terrorism finance in late 2005. 
Such media coverage is often a harbinger of government 
action.  Opposition parliamentarians could delay, but 
probably not block, the bill's passage.  If the government 
puts its weight fully behind the AML law (as the Ministry of 
Justice Advisor indicated), the legislation should sail 
through parliament with little trouble.  Experience has shown 
that legislative action, even on popular and non-contentious 
bills, can be excruciatingly slow.  A sensitive bill like the 
draft AML law could be relegated to a slow track when and if 
it reaches the parliament. 
****************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
****************************************** 
 
Riley