VZCZCXRO5393
PP RUEHDBU RUEHIK RUEHYG
DE RUEHBUL #0755 0641316
ZNR UUUUU ZZH
P 051316Z MAR 07
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC PRIORITY 6602
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC 0348
RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHZG/NATO EU COLLECTIVE
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUEABND/DEA HQS WASHINGTON DC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK 3719

UNCLAS KABUL 000755 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EB/ESC/TFN, SC/T, IO/UNP, SCA/FO, SCA/RA, AND SCA/A 
NSC FOR AHARRIMAN 
TREASURY PASS TO LMCDONALD, ABAUKOL, JCIORCIARI, AND ASHARMA 
OSD FOR BRZEZINZSKI 
 
E.O. 12958 N/A 
TAGS: EFIN KTFN PTER ETTC PREL AF
SUBJECT:  TERRORIST FINANCE - USG CONCERN OVER ILLICIT CASH 
COURIERS 
 
REF: STATE 16120 
 
1.(SBU) In a February 11 meeting with Central Bank Governor 
Delawari, ECON Counselor emphasized the importance of implementing 
the Financial Action Task Force (FATF) standard and guidance for 
monitoring the cross-border transportation of illicit currency and 
other bearer negotiable instruments.  After the meeting, we left 
paras 10-12 from reftel as a non-paper.  Treasury Attach and 
visiting Treasury official Amit Sharma followed up on the issue on 
March 3. 
 
2.(SBU) During the February 21 Strategic Partnership Prosperity 
Working Group meeting, the Central Bank Financial Intelligence Unit 
(FIU) Director briefed on the steps that his organization is 
undertaking to implement the FATF guidelines.  Working with Customs 
at Kabul International Airport and airlines landing there, he 
advised that the FIU has implemented requirements that arriving 
passengers complete a cash declaration form and provide it to 
customs officials.  USDEL leaders noted that they had completed the 
form upon arrival and applauded this important step.  The FIU 
Director stated that the next step is to expand the program to 
Afghanistan's other airports and border crossing points. 
 
BACKGROUND 
 
3.(SBU)  The Afghan anti-money laundering law, issued by decree in 
December of 2003, contains FATF Special Recommendation IX ("Cash 
Courier")-compliant provisions for currency reporting at borders. 
In July of 2006, a memorandum of understanding was signed by the DAB 
Governor and the Deputy Minister of Finance for Customs and Revenue. 
 The MOU describes the respective roles and responsibilities of the 
two parties in implementing the relevant provisions of the law.  As 
a result of the MOU, DAB and the Ministry of Finance have worked 
closely to deploy a declaration form and process.  The initial 
prototype implementation has been targeted at Kabul International 
Airport.  Training has been delivered on both the form and the 
process to airport customs and border police staff, as well as to 
airline representatives and Kabul-area travel agents.  The prototype 
is currently operating in a full declaration mode (i.e. everybody 
has to make a declaration whether positive or negative) in an effort 
to raise public awareness and to institutionalize the process.  A 
voluntary declaration mode will begin after a period of ninety days 
has elapsed.  So far, the system has not been implemented at land 
border crossings.  Implementation at these points will depend 
largely upon the success of capacity building efforts.  There is an 
effort currently underway to integrate the declaration system into 
overall planning for building border management capacity. 
 
NEUMANN