VZCZCXYZ0000
RR RUEHWEB

DE RUEHRB #0889/01 1381204
ZNR UUUUU ZZH
R 181204Z MAY 07
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 6558
INFO RUEHAS/AMEMBASSY ALGIERS 4430
RUEHEG/AMEMBASSY CAIRO 2071
RUEHMD/AMEMBASSY MADRID 5713
RUEHNK/AMEMBASSY NOUAKCHOTT 3495
RUEHFR/AMEMBASSY PARIS 4636
RUEHCL/AMCONSUL CASABLANCA 3048

UNCLAS RABAT 000889 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG, S/CT, EB AND INL 
 
E.O. 12958: N/A 
TAGS: KTFN EFIN PTER PGOV MA
SUBJECT: AML: MOROCCO'S NEW LAW ENTERS INTO FORCE 
 
REF: A. 06 RABAT 2284 
     ¶B. 06 RABAT 356 
     ¶C. BAIRD/SCHONANDER E-MAILS 5/7/07 
 
(U)  This message is sensitive but unclassified.  Not for 
internet distribution. 
 
¶1. (SBU) Summary: Morocco's long-awaited anti-money 
laundering statute officially entered into force on May 3, 
2007, with its publication in the country's "Bulletin 
Officiel."  Moroccan officials tell us they are currently 
working to finish the decrees that will implement the new 
law, and that they anticipate that the new Financial 
Intelligence Unit the law establishes should be up and 
running by early 2008.  They indicated that they welcome U.S. 
assistance in setting up the FIU and in training its 
personnel, but believe such assistance would most usefully be 
provided next year.  They added (and Embassy Madrid confirms) 
that Spain and France will take the lead in the EU in 
providing similar assistance, and that a convention to this 
effect will be signed in the near future.  End Summary. 
 
¶2. (U) Morocco's anti-money laundering legislation, which was 
passed in parliament's special session in early March, became 
official on May 3 with its publication in the Kingdom's 
"Bulletin Officiel."  The law (informal translation will 
follow via fax) fills in the key missing piece in Morocco's 
counter-terrorism finance legal framework, building on the 
overall law on terrorism which was passed in 2003.  It 
establishes a financial intelligence union (attached to the 
Prime Minister's office), provides new powers for freezing 
and seizing assets, and requires financial institutions to 
report suspicious transactions.  Penalties for money 
laundering range from 2 to 5 years imprisonment and 2,500 USD 
to 12,000 USD for individuals and 55,000 USD to 350,000 USD 
for institutions.  Financial institutions that fail to carry 
out their monitoring responsibilities under the law can be 
fined from 12,000 USD to 60,000. 
 
¶3. (SBU) Earlier in late April, in anticipation of the law's 
publication, Econoffs met with Ministry of Finance officials 
to learn their timeline for implementation of the law and to 
renew discussion of how the U.S. might best assist Morocco as 
it moves to set up its FIU.   Deputy Treasury Director Habib 
El Idrissi and Abdelaziz Khaoua, Head of the Credit 
Establishments Division of the Treasury Directorate told us 
that they were currently in the process of drafting 
implementing regulations for the law.  These will be 
submitted to the Council of Government and the Council of 
Ministers after the Secretary General of the government has 
organized a consultation around them, but as the "essential 
has already been discussed," El Idrissi predicted this would 
be accomplished within two months.  Thereafter, the FIU will 
be set up and made operational.  El Idrissi added that the 
Justice Ministry is organizing a "day of reflection" for 
stakeholders from across the government and private sector to 
inform them of the law's requirements and to explain how it 
will be implemented. 
 
¶4. (SBU) Reviewing the law's passage through Parliament, El 
Idrissi noted that while a number of non-substantive 
amendments were introduced the Chamber of Deputies, expected 
opposition did not emerge in the Chamber of Representatives. 
Instead that chamber approved the bill unchanged.  He 
suggested that the government had been successful in arguing 
that the FIU offered financial institutions and others an 
additional "protection," in that it would review suspicious 
cases before they were referred to the justice system, so 
that only cases which turned out to have "irregularities" 
would be sent to the judiciary. 
 
¶5. (SBU) Noting the intensive consultations that have 
occurred over the years, El Idrissi and Khaoua looked forward 
to further cooperation with the U.S. in setting up Morocco's 
FIU and in providing training for its agents.  They stressed, 
however, that such training would be most useful if it was 
provided in 2008, as they expect that the Financial 
Intelligence Unit will become operational at the turn of the 
year.  They noted that they have also received offers of 
assistance from the European Union, and in fact will soon 
sign a cooperation convention with France and Spain.  Under 
it, the two countries will provide training to personnel who 
will be assigned to the FIU (Embassy Madrid separately 
confirmed this information-- ref C).  They judged USG 
 
training, even if similar, would not be duplicative, but 
would provide valuable added perspective on U.S. experience 
in the area.  El Idrissi noted that Morocco intends that the 
FIU be "supple and not gigantic."  It will be constituted of 
a core group of personnel, and will pull in additional 
resources from concerned Ministries and institutions as is 
necessary. 
 
¶6. (SBU) Comment: Publication of the law marks a major step 
forward for Morocco counter-terrorism finance regime.  We are 
working with Legatt to organize a potential consultation 
visit in coming months to review training needs, even as 
 
Moroccan officials from the Central Bank and elsewhere 
continue to participate in relevant FDIC and other training 
opportunites.  We are also reaching out to counterparts at 
European missions to ensure that our bilateral assistance 
efforts are coordinated.  End Comment. 
 
 
****************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
****************************************** 
 
RILEY