VZCZCXRO7088
RR RUEHLMC
DE RUEHMU #2621/01 3542129
ZNR UUUUU ZZH
R 202129Z DEC 07 ZDK
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 1848
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUEHBO/AMEMBASSY BOGOTA 1821
RHEHNSC/NSC WASHDC
RUEHLMC/MILLENNIUM CHALLENGE CORP WASHDC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAWJA/DEPT OF JUSTICE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC

UNCLAS SECTION 01 OF 02 MANAGUA 002621 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR WHA/CEN, WHA/EPSC, INL/LP, S/CT AND EEB/IFD 
BOGOTA FOR FGROENE 
GUATEMALA FOR NAS 
TREASURY FOR SARA GRAY AND FINCEN 
TREASURY PASS TO IRS-CI/NFULLER, AALDECOA, TMAHONEY 
JUSTICE FOR OIA, AFMLS, NDDS 
JUSTICE PASS TO OPDAT CDELUIGI 
USDOC FOR 4332/ITA/MAC/WH/MSIEGELMAN 
3134/ITA/USFCS/OIO/WH/MKESHISHIAN/BARTHUR 
 
E.O. 12958: N/A 
TAGS: EFIN PTER ECON PGOV SNAR NU
SUBJECT: Educating Nicaraguans on FIU Operations 
 
REF: MANAGUA 2351 (NOTAL) 
 
¶1. (SBU) Summary: On November 29, Embassy Managua held three 
separate seminars to educate members of the media, GON, and the 
private sector about the role and operation of a Financial 
Intelligence Unit (FIU) to dispel fears that the FIU would become 
another law enforcement tool which the GON could deploy against 
political enemies.  Our immediate objective was to explain the 
responsibilities of an FIU, how it operates, and how it interacts 
with the other FIUs.  Eighteen reporters from various media outlets 
attended the seminar for press and spent almost two hours asking 
questions.  Separate seminars for the GON and private sector 
representatives resulted in equally intense Q&A sessions.  The event 
helped us to get out clear and accurate information on FIU 
operations and the institution's role in Nicaragua's financial 
security.  Depending on the progress of the bill to create an FIU in 
the National Assembly, we may consider a follow-up event in February 
¶2008.  End Summary. 
 
Overview of the Seminars 
------------------------ 

¶2. (U) Since Embassy Managua's last public event highlighting the 
need for Nicaragua to have an FIU (Reftel), public debate has 
centered on a growing fear that an FIU would overturn banking 
secrecy laws and become another law enforcement tool the GON could 
deploy against political enemies.  Several Nicaraguan public figures 
have called the creation of an FIU the beginning of a "police 
state."  To allay fears and influence the public discourse of key 
Nicaraguan actors on the issue, on November 29 Embassy Managua held 
three separate seminars for public and private sector 
representatives and the press explaining the responsibilities of an 
FIU, how FIUs operate, and how FIUs interact with their 
international counterparts.  Separate events allowed participants to 
feel that they were among colleagues and therefore free to discuss 
their concerns. 
 
¶4. (U) Speakers at the event were Mauricio Pastora, Regional Advisor 
to Latin America in FINCEN; Willy Zapata, Guatemalan Superintendent 
of Banks and former president of Caribbean Financial Action Task 
Force (CFATF); Humberto Arbulu Neira, IMF Resident Representative; 
and Ricardo Velez, creator and former President of Guatemala's FIU 
and anti-money laundering consultant.  Experts on hand to respond to 
questions were Lourdes Galindo, Guatemala NAS Legal Advisor and one 
of the drafters of Guatemala's FIU law; Victor Urcuyo, Nicaraguan 
Superintendent of Banks; Ramon Tobar, Guatemalan FIU Director; and, 
Heynar Martinez, Anti-Money Laundering Director at Nicaragua's 
Superintendency of Banks. 
 
¶5. (U) Speakers focused on the role of an FIU in improving financial 
security in a country, clarifying what an FIU looked at and 
investigated, how it interacted with the international FIU 
community, and how it conducted operations within the confines of 
existing banking secrecy practices.  Velez' presentation went into 
extensive detail on the day-to-day operations of an FIU and its 
interaction with other FIUs around the world.  Zapata used 
colloquial stories to explain the costs to ordinary Nicaraguans of 
not having an FIU.  Post had provided the speakers with Nicaragua's 
current bill creating an FIU, as well as proposed amendments from 
the Superintendency of Banks, so they were able to show how the 
proposed Nicaraguan FIU met these international norms. 
 
The Media 
--------- 

¶6. (U) An essential part of educating the Nicaraguan public on the 
importance of an FIU is educating the media.  Managua PAS invited 
over 20 members from Nicaragua's broadcast and print media to a 
special session with the speakers.  Over 18 reporters attended, 
including four television crews.  The speakers delivered their 
presentations, answered questions and conducted extensive television 
interviews for almost two hours.  We also shared via e-mail Velez' 
power point presentation which laid out step-by-step how FIUs 
operate.  As a result of this effort, Nicaragua's two major 
newspapers issued three balanced and informative pieces that 
dispelled quite a few of the myths surrounding FIUs.  Television 
coverage included evening news spots on one cable and two national 
stations.  At least four radio stations with national coverage 
discussed the issue of FIUs in afternoon and evening news programs. 
 
The Government 
-------------- 

¶7. (SBU) A Supreme Court Justice headed thhcQQ5Nx~, National Anti-Drug 
Commission, and Director General for Taxes.  The Economic Counselor 
from the German Embassy, representing the G8 presidency, made a 
closing statement highlighting the high priority G8 countries give 
to Nicaragua having an FIU. 
 
¶8. (U) Questions from the floor focused on FIU operations and 
international standards.  Many of the guests continued to ask the 
speakers and experts questions during the coffee break and in the 
hallway while the next event was being set up.  We also shared via 
e-mail Velez' power point presentation to all who attended. 
 
The Private Sector 
------------------ 

¶9. (SBU) The Ambassador opened the meeting with the private sector 
which included representatives from the American Chamber of 
Commerce, the Chamber of Industry, and the Association of Private 
Banks.  During an extensive 90-minute question and answer period, 
attendees focused on protecting private financial information from 
political scrutiny, the responsibilities of banks, and how to 
guarantee FIU independence. 
 
Comment 
------- 

¶10. (SBU) The event allowed us to get out clear and accurate 
information on the role and operation of FIUs in Nicaragua.  We had 
wanted National Assembly Deputies and their staff to attend, but 
they were unable to because of a scheduling conflict.  The 
Superintendent of Banks believes they avoided the event because the 
FIU issue had become a political "hot potato."  Depending on the 
progress of the bill creating an FIU, currently in the National 
Assembly Economic Commission, Embassy Managua may want to invite Mr. 
Zapata and Mr. Velez to speak just to National Assembly Deputies in 
February 2008. 
 
¶11. (U) Post would like to extend a special thanks to NAS Guatemala 
for their help and support for this event. 
 
TRIVELLI