VZCZCXRO6958
RR RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHTA #1762/01 1780857
ZNR UUUUU ZZH
R 270857Z JUN 07
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 9923
INFO RUEHAST/USOFFICE ALMATY
RUCNCLS/SOUTH AND CENTRAL ASIA COLLECTIVE
RUEATRS/DEPT OF TREASURY WASH DC//IET//

UNCLAS SECTION 01 OF 02 ASTANA 001762 
 
SIPDIS 
 
STATE FOR INL/AAE (ALTON), INL/C, SCA/CEN (O'MARA) 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: SNAR PREL PGOV KCOR KCRM KZ
SUBJECT: KAZAKHSTAN: ANTI-MONEY LAUNDERING AND COUNTER-NARCOTICS 
ASSISTANCE DONOR COORDINATION MEETING 
 
ASTANA 00001762  001.2 OF 002 
 
 
¶1. Summary:  On June 18, the Embassy of the United Kingdom in Astana 
hosted a coordination meeting on anti-money laundering, adding an 
hour for discussing counter-narcotics assistance.  Representatives 
of the World Bank, OSCE, UNODC, BOMCA/CADAP, and the Embassies of 
France and Germany provided briefings on the recent Eurasia Group 
Plenary Session and bilateral assistance programs.  Representatives 
of the Procurator General's Office provided information on recent 
anti-money laundering developments.  The officers expressing strong 
belief that Kazakhstan's financial intelligence unit will be 
established soon after the passage of the basic anti-money 
laundering law later this year and it will be placed under the 
authority of the Procurator General's Office.  End summary. 
 
------------------------------ 
EURASIA GROUP PLENARY IN SOCHI 
------------------------------ 
 
¶2.  Cari Votava, Senior Financial Specialist of the World Bank, 
reported about the Sixth Eurasia Group Plenary Meeting held in 
Sochi, Russia on June 11-15, highlighting that the EAG evaluation of 
Kazakhstan was postponed until November 2009, after expected passage 
of the basic AML law and establishment of the FIU. 
 
¶3.  Votava said that one of the central issues at the Plenary 
Meeting was the evaluation report on Kyrgyzstan prepared by the EAG 
Mandate Working Group on Mutual Evaluations and Legal Issues.  She 
noted that Kyrgyzstan successfully passed the evaluation.  The 
mutual evaluation of China is currently in process and the next 
countries to be evaluated are Tajikistan and Russia.  EAG member 
states Belarus, China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan 
and Uzbekistan attended the plenary.  (Note: The U.S. has observer 
status at the Eurasian Group.  End note.) 
 
--------------------------------------------- -------- 
AML LAW - FIU in KAZAKHSTAN? LATER RATHER THAN SOONER 
--------------------------------------------- -------- 
 
¶4.  Andrey Kravchenko, Head of the Department of Legal Oversight of 
State Agencies of the Procurator General's Office (PGO), reported 
that the PGO had submitted a request to Prime Minister Masimov to 
facilitate the establishment of the Financial Intelligence Unit 
(FIU), but the request was tabled pending passage of the AML law. 
 
¶5.  Notwithstanding the tabled motion, Kravchenko pointed out that 
at a recent meeting in the Presidential Administration, heads of law 
enforcement agencies, representatives of the central bank, and the 
regulators of the financial markets responded positively to the 
Procurator General's written proposal to establish the FIU under the 
Procuracy.  He said that during the week of June 25 the Procuracy 
will draft the text of a Presidential decree on establishment of the 
FIU.  The Procurator's Office expects to establish FIU very soon 
after passing the AML law which is expected in late 2007 or early 
¶2008. 
 
 
---------------------------------------- 
PREPPING PRIVATE BUSINESS ON AML AND FIU 
---------------------------------------- 
 
¶6. Kravchenko further reported that on March 30 officers of the PGO 
met with business representatives at the Forum of Entrepreneurs and 
addressed many of private sector concerns related to enactment of 
the AML law and establishment of FIU under Procurator's Office.  He 
pointed that as soon as the Mazhilis (lower house of parliament) 
begins consideration of the draft AML law, interagency consultations 
by state agencies for private sector representatives will begin as 
well. 
 
¶7.  Regarding technical assistance, recently the PGO in cooperation 
with World Bank began conducting one day anti-money laundering 
seminars for officers from different law enforcement agencies.  The 
next seminar will take place on July 5.  (Note: Within its ongoing 
AML program, INL will sponsor additional training for future FIU 
analysts and investigators.  End note.)  With the assistance of the 
World Bank, several Kazakhstani law enforcement officers took 
courses in Syracuse, Italy on international experience in combating 
money laundering. 
 
----------------- 
COUNTER-NARCOTICS 
----------------- 
 
¶8. Tofik Murshudlu, UNODC Coordinator, provided a status report on 
the establishment of the Central Asia Regional Information 
Coordination Center (CARICC) in Almaty.  To date, the presidents of 
five participating countries have signed the agreement on CARICC 
establishment.  As soon as the presidents of Russia and Turkmenistan 
sign the agreement the document will be sent for ratification to the 
 
ASTANA 00001762  002.2 OF 002 
 
 
parliaments of the signatory countries.  To avoid for a long delay 
while parliaments take action, UNODC proposes to launch a pilot 
phase of CARICC.  Murshudlu assured participants that there is 
sufficient legal basis to start some functions of CARICC during the 
pilot phase.  One benefit of the pilot project is that several 
ongoing counter-narcotics operations in Central Asia could be 
continued more easily from a central location and coordinated more 
effectively across national borders.  Furthermore, the pilot phase 
would permit "test driving" the CARICC operational system (technical 
and managerial), allowing for modification before the official 
opening.  Murshudlu called for financial support and active 
participation of key CARICC partners to ensure the proper launch of 
the center. 
 
¶9. Catherine Inglehearn, British DCM, described the projects on 
transparency of budgets that the UK Embassy is implementing in 
Kazakhstan.  She also mentioned that the UK and GOK have signed a 
memorandum of understanding on mutual assistance and exchange of 
intelligence information on money laundering crimes. 
 
¶10. Jean Frangois of the Embassy of France reported that he has 
invited French experts to conduct a drug intelligence seminar in 
Kyrgyzstan in September 2007.  In October 2007 he plans to provide 
training on financial terrorism for officers of the National 
Security Committee (KNB).  He is also working on developing training 
on detecting forgery of identification documents.  All training is 
to be provided at the academies of the MVD and KNB.  He is also 
arranging a visit of eight Kazakhstani KNB officers to France to 
meet counterparts and study experience of combating financial 
crimes.  Francois underlined that KNB has a budget to contribute to 
all joint events. 
 
¶11. Comment:  In the eyes of the PGO, the thrice delayed AML law now 
appears to be gathering momentum.  The PGO looks forward to the 
election of the new Mazhilis (lower house of parliament) in August 
2007 and support from Presidential Administration to facilitate the 
adoption of the AML law.  According to the current information, 
analysis of the law is to conclude on November 11, 2007 and 
consideration of the law in the Mazhilis is expected soon after. 
End comment. 
 
ORDWAY