VZCZCXYZ0003
RR RUEHWEB

DE RUEHMU #1431/01 1562055
ZNR UUUUU ZZH
R 052055Z JUN 07
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 0439
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEAHLC/HOMELAND SECURITY CENTER WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RHMCSUU/FBI WASHINGTON DC
RHEHNSC/NSC WASHINGTON DC

UNCLAS MANAGUA 001431 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, EB/ESC/TFS - LEAHY AND CANNON, 
S/CT HILL AND GALER 
 
E.O. 12958: N/A 
TAGS: PTER EFIN ETTC KTFN PREL NU
SUBJECT: NICARAGUA: FACING CHALLENGES IN ADDRESSING CASH 
COURIERS 
 
REF: STATE 16120 
 
¶1. (SBU) Summary:  On May 24, Econoff delivered reftel 
demarche on illicit cash couriers to representatives of the 
Nicaraguan inter-agency Anti-Terrorism Working Group 
(ATWG).  ATWG representatives responded that cash couriers 
are an issue of growing concern in Nicaragua, but current 
laws and the lack of a Financial Intelligence Unit make it 
difficult to prosecute this and other financial crimes 
effectively.  The ATWG believes, however, that several 
bills nearing approval by the National Assembly, including 
a new Penal Code, will address these limitations.  The ATWG 
is exploring funding sources for integrated training on 
financial crimes to take place in Nicaragua.  Nicaragua's 
highly politicized and corrupt judicial system will make 
enforcement of any new laws difficult, as politics 
determines judicial decisions.  Extensive training of 
investigators and judges will be essential.  End Summary. 
 
¶2. (SBU) On May 24, Econoff delivered reftel demarche on 
illicit cash couriers to representatives of the Nicaraguan 
ATWG.  Econoff left as an aide-memoire the non-paper, the 
text of the UN International Convention for the Suppression 
of the Financing of Terrorism, the nine Special 
Recommendations of the FATF-GAFI, and relevant talking 
points.  Full list of representatives at the meeting are in 
Paragraph 9. 
 
Cash Couriers are a problem not well addressed 
--------------------------------------------- - 
¶3. (SBU) In response to the demarche, ATWG representatives 
stated that cash couriers have become a growing concern in 
Nicaragua.  The Prosecutor General's office reported four 
large (over USD 1 million) seizures since October 2006. 
Because the cash seizures did not happen as part of drug 
seizures (although they were probably connected) the 
Attorney General's office can only prosecute under Law 42, 
which addresses customs contraband.  The short sentences 
proscribed for these crimes are ineffective for addressing 
this growing problem. 
 
¶4. (SBU) According to post's Regional Legal Advisor, the 
Prosecutor General's office unwillingness to consider money 
laundering charges in any case not tied directly to 
narcotics trafficking also hampers the police and Attorney 
General's efforts.  Nicaragua also lacks a Financial 
Intelligence Unit (the only country in the Americas without 
one), and regulations on how to transparently seize and 
process the assets of convicted criminals, including cash 
and bank accounts. 
 
The National Assembly Holds Potential Solutions 
--------------------------------------------- -- 
¶5. (SBU) The ATWG believes several bills nearing approval 
by the National Assembly will address current limitations 
for prosecuting financial crimes.  The new Penal Code, 
expected to be approved and implemented in August, now 
lists money laundering (to include cash smuggling) as a 
crime independent of narcotics trafficking, with sentences 
starting at five years.  With UN funding, the ATWG is 
supporting an anti-terrorism bill, expected to reach the 
full Assembly for consideration in June.  The ATWG is also 
pressuring the National Assembly to pass a long-stalled 
bill creating an independent and fully-funded Financial 
Analysis Unit (a FATF requirement by January 2008.)  The 
Chief of Police and Superintendent of Banks will lead this 
lobbying effort. 
 
Other Efforts and Needs 
----------------------- 
¶6. (SBU) The GON is preparing people to address financial 
crimes.  The National Police has a permanent training 
program for officers working on the borders and is actively 
sharing intelligence with other agencies.  The Prosecutor 
General's office is creating a special economic crimes unit 
to work in coordination with the National Police's Economic 
Crimes Office.  They are also drafting a bill to create a 
unit specialized in handling seized assets.  All of the 
agencies in the ATWG are hampered by a lack of money to 
attend training opportunities in the region.  This limits 
the number of people trained and the access to new 
information on changing crime patterns and investigation 
techniques. 
 
¶7. (SBU) The ATWG and its member agencies are interested in 
hosting training opportunities on the various aspects of 
financing terrorism and organized crime including 
investigation and prosecution techniques.  In September, 
the U.S. IRS will hold an introductory course on 
investigating and prosecuting money laundering, the first 
in a series of training modules already carried out in 
Panama. 
 
Comment 
------- 
¶8. (SBU) Nicaragua's highly politicized and corrupt 
judicial system makes enforcement of any laws in Nicaragua 
difficult.  Most of the members of the ATWG are serious 
about improving Nicaragua's ability to fight organized 
crime and terrorism.  At the moment, however, politics 
takes precedence over judicial decisions.  Extensive 
training for investigators and judges would help Nicaragua 
become an effective player in the world-wide efforts to 
stop terrorism and organized crime financing.  End comment. 
 
ATWG Representatives at the meeting 
----------------------------------- 
¶9. (U) - Ministry of Foreign Affairs (MFA) Director of 
Democratic Security Carlos Bana 
 
- MFA Deputy Director of Democratic Security Marazeli 
Rodriguez 
 
- MFA Deputy Director of the Americas Rene Morales 
 
- MFA U.S. Desk Officer Gregorio Torres 
 
- Executive Secretary of the Prosecutor General's Office 
Delia Rosales 
 
- Assistant Attorney General for Criminal Maters Amy Garcia 
Curtis 
 
- Superintendence of Banks Anti-money Laundering 
Coordinator Heynar Francisco Martinez 
 
- National Police Director of Economic Investigations 
Javier Obando Galeano 
 
- National Police Director of Customs Fidel Dominguez 
Alvarez 
TRIVELLI