VZCZCXRO0726
RR RUEHBC RUEHDA RUEHDE RUEHIHL RUEHKUK RUEHMOS
DE RUEHGB #0972 0831237
ZNR UUUUU ZZH
R 241237Z MAR 06
FM AMEMBASSY BAGHDAD
TO RUEHC/SECSTATE WASHDC 3518
INFO RUCNRAQ/IRAQ COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS BAGHDAD 000972 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON KTFN KCRM IZ
SUBJECT: ENGAGING THE CENTRAL BANK OF IRAQ (CBI) GOVERNOR 
 
¶1. (SBU) Summary: In a meeting on March 12 the Ambassador 
complimented Central Bank Governor Dr. Sinan Shabibi for 
stabilizing Iraq's currency and helping Iraq get an IMF 
standby arrangement last year.  The Ambassador also noted the 
importance of continuing to fight terrorist financing.  Dr. 
Sinan asked for help in the CBI's money laundering reporting 
office unit.  The IRS-CI attache urged Dr. Sinan to work with 
the USG to implement a CPA order to allow the Government of 
Iraq to seize former regime elements (FREs) and their assets. 
 End Summary. 
 
¶2. (SBU) The Ambassador complimented Dr. Sinan Shabibi for 
the many achievements he has contributed to on behalf of 
Iraq, particularly his work to maintain exchange rate 
stability and with the IMF and Paris Club.  The Ambassador 
discussed the political situation with Dr. Sinan, commenting 
that the current hurdle to finalizing the government in Iraq 
is the selection of the Prime Minister.  He asked Dr. Sinan 
for his opinion on who would be a good candidate for the 
position.  Dr. Sinan said the candidate should be someone who 
is strong politically but also a liberal.  Dr. Sinan demurred 
from naming anyone in particular at this time, but said he 
would think about the matter and get back with the Ambassador. 
 
¶3. (SBU) The Ambassador and Dr. Sinan agreed that politics 
needs to be kept out of the CBI.  The Ambassador also urged 
the Governor to keep making progress on regulatory and money 
laundering issues. 
 
¶4. (SBU) The Governor stressed that the CBI is striving to 
get the country's banking system moving away from being 
cash-based.  The implementation of the payment system will be 
one of the keys to accomplishing this goal.  He added that 
they also need help to develop further their banking 
supervision.  Dr. Sinan expressed his gratitude to the 
Treasury Attache/IRMO Financial and Fiscal Affairs Director 
for all of his assistance and advice. 
 
¶5. (SBU) Dr. Sinan asked the Ambassador for more help and 
technical advice for the Money Laundering Reporting Office 
(MLRO).  He said they need to concentrate on the money 
laundering issue and asked for training on how to get their 
unit up and running.  The IRS-CI Attache noted the State 
Department's Terrorism Finance Working Group (TFWG) was 
poised to provide assistance.  The TFWG is waiting to send a 
Financial Systems Assessment Team (FSAT) to Iraq. 
 
¶6. (SBU) IRS-CI Attache Crowe raised the topic of FREs and 
their assets.  Attache Crowe noted that Article 6.2 of CPA 
Order 93 mirrored the language in the United Nations Security 
Resolution (UNSCR).  Crowe asked if Dr. Shabibi would be 
willing to implement the CPA Order, should he be presented 
with information about FRE assets.  Dr. Shabibi answered 
positively, noting that he would work with the Ministry of 
Finance to process the information for the approval of the 
Council of Ministers.  Upon the Council's approval, the 
assets could be repatriated to the Iraqi government's 
Developmental Fund for Iraq. 
KHALILZAD