VZCZCXYZ0010
RR RUEHWEB

DE RUEHRB #0730 1110846
ZNR UUUUU ZZH
R 210846Z APR 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 3478
INFO RUEHCL/AMCONSUL CASABLANCA 1608
RUEATRS/DEPT OF TREASURY WASHDC
RUCNFB/FBI WASHDC
RHEFHLC/DEPT OF HOMELAND SECURITY WASHINGTON DC

UNCLAS RABAT 000730 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG, S/CT, EB/ESC/TFS, AND INL 
TREASURY FOR OASIA, OFAC, AND OTA 
PLEASE PASS FINCEN 
 
E.O. 12958: N/A 
TAGS: KTFN EFIN PTER PGOV MO
SUBJECT: MONEY LAUNDERING BILL PASSES COUNCIL OF 
GOVERNMENT 
 
(U)  This cable is sensitive but unclassified, please 
protect accordingly. 
 
¶1.  (U) On April 19, Morocco's long awaited draft Anti- 
Money Laundering (AML) bill was approved the Moroccan 
Council of Government (the cabinet chaired by Prime 
Minister Driss Jettou).  After clearing the Council of 
Government, a Ministerial Council, presided over by 
King Mohammed VI, will then offer final approval and 
submit the bill to Parliament for legislative action. 
The Council of Minister's meets at the King's 
discretion; no meeting is currently scheduled. 
 
¶2.  (SBU) Passage and implementation of AML legislation 
will enable Morocco to conform to international anti- 
money laundering and counter-terrorism finance 
standards and to install a Financial Intelligence Unit 
(FIU) that will receive and analyze suspicious 
transaction reports and disseminate them to appropriate 
law enforcement agencies for investigation, enhancing 
Morocco's ability to monitor its financial system for 
suspicious transactions suggesting criminal activity. 
AML passage (and FIU establishment) will also permit 
Morocco, as part of its anti-money laundering program, 
to draw on previously designated INL funds to help 
equip its FIU and to train AML experts.  Morocco will 
then be able to be a full participant in international 
cooperative efforts to combat financing of terrorism. 
 
¶3.  (SBU) While some politicians have over the last 
several weeks reassured Econoffs that the AML bill will 
have smooth sailing once it reaches parliament, a 
Member of Parliament who serves on the Financial 
Committee told EconCouns in March that the Moroccan 
legislature would not consider the AML bill until the 
fall 2006 session.  Banking contacts told Econoff that 
parliamentary consideration, as well as subsequent AML- 
required institutional reforms, could still delay full 
AML implementation even later.  "There is still a lot 
the Government has to do once it passes Parliament" 
commented a senior commercial banker, "I'm sure we 
won't see it enacted until the fall, at the earliest." 
 
¶4.  (SBU) Comment:  We are relieved to see progress on 
Morocco's AML legislation that has been languishing in 
the SGG for almost three years.  Delay in adopting the 
legislation has hindered GOM counter terrorism finance 
(CTF) efforts and imperiled USG CTF-related assistance. 
However, several legislative and bureaucratic hurdles 
still remain before an FIU is up and running and banks 
are submitting suspicious activity reports (SARs) on a 
regular basis.  Nonetheless, it now seems possible that 
the AML law could become reality by the end of 2006. 
 
RILEY