VZCZCXYZ0000
RR RUEHWEB

DE RUEHRB #0179/01 0581054
ZNR UUUUU ZZH
R 271054Z FEB 08
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 8195
INFO RUEHAS/AMEMBASSY ALGIERS 4697
RUEHMD/AMEMBASSY MADRID 5922
RUEHFR/AMEMBASSY PARIS 4943
RUEHTU/AMEMBASSY TUNIS 9532
RUEHCL/AMCONSUL CASABLANCA 3917
RUEHBS/USEU BRUSSELS

UNCLAS RABAT 000179 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
TREASURY FOR KRISTEN HECHT, USEU FOR JUNDERWOOD, DHS FOR 
ICE/OIA MICHAEL FEINBERG 
 
E.O. 12958: N/A 
TAGS: EFIN PTER PGOV MO
SUBJECT: EU LAUNCHES AMBITIOUS AML/CTF PROJECT WITH MOROCCO 
 
REF: A. 07 RABAT 889 
     ¶B. 07 MADRID 1360 
 
Sensitive but Unclassified - entire text.  Not for internet 
distribution. 
 
¶1. (SBU) Summary: We met this week with Fernando Rosado, the 
resident advisor who is overseeing the newly launched EU 
twinning project in support of development of both Morocco's 
Financial Intelligence Unit (FIU) and its overall integrated 
anti-money laundering/counter terrorism finance regime.  The 
project, which was formally launched on February 15, includes 
a budget of 1.4 million Euros for 94 activities to be carried 
out over a two year period.  Rosado, who arrived here last 
October, noted that the project is four months behind 
schedule, but when fully operation will see a program a week 
over the two year period.  Rosado stressed that he intends to 
coordinate closely with all other actors in the AML/CTF 
field, and looked forward to cooperation with the USG to 
ensure that our efforts are "complementary."  End Summary. 
 
¶2. (SBU) An ambitious undertaking: Rosada, a Spanish civil 
servant who has also worked as an international consultant on 
AML/CTF issues, previously headed FATF/GAFI's South America 
task force.  He briefly reviewed the overall structure of the 
EU project in Morocco, characterizing it as a "very 
comprehensive" program that already incorporates a schedule 
for the 90-plus programs that will be undertaken over its two 
years life.  He described a complicated organizational 
schema, in which the Spanish Treasury is the lead 
implementing agency, with support from France's financial 
intelligence unit-- TracFin.  Target audiences, he said, have 
already been identified, though because Morocco has not yet 
passed the decree authorizing creation of its FIU, these 
programs have been delayed by several months, and the EU will 
soon face a choice between intensifying the tempo of the 
programs or extending the project for several months. 
 
¶3. (SBU) Rosado noted that several activities have actually 
been undertaken, even in advance of the decree's 
promulgation.  They include a compilation of Moroccan 
legislation relevant to the AML/CTF issue, two diagnostic 
visits-- one focused on the country's "repressive" regime and 
the other on its "preventive" regime, and the February 15 
seminar/conference to launch the project.  Rosado noted that 
at Moroccan request the February 15 event was very much an 
in-house one, as Morocco did  not wish to open it to other 
partners on the issue.  As the project advanced, however, he 
looked forward to regular consultation with the United States 
and others to ensure that our activities are not duplicative. 
 He noted that an updated assessment of Morocco's AML/CTF 
regime based on the diagnostic visits should be released in 
the next several weeks. 
 
¶4. (U) The EU project itself has five major pillars.  They 
include: 
 
--  Reinforcing public support and national coordination, 
though working groups, workshops, and public meetings. 
 
--  Providing technical assistance and help with the updating 
of relevant Moroccan legislation, through diagnostic visits, 
a joint committee to rewrite legislation as necessary, and 
judicial assistance as required. 
 
-- Aiding implementation of the Financial Intelligence Unit 
(FIU), through support for recruitment, elaboration of 
internal work rules, coordination with other agencies, help 
with procedures for international cooperation, support for 
installation of a computer system, working visits to Sepblac 
(Spain) and Tracfin (France), and train-the-trainer programs 
within the unit. 
 
-- Reinforcing Morocco's investigating structures-- through 
seminars on prcedures, study visits, workshops, and technical 
assistance as required. 
 
-- Helping banks and other institutions that are subject to 
AML/CTF requirements set up preventive systems to ensure 
their compliance, through seminar for supervisors, 
train-the-trainer and other training programs, and workshops. 
 
-- Carrying the message to non-financial activities and 
professions, to ensure they understand their obligations 
under the new legislation. 
 
¶5. (SBU) Rosado saw particular room for cooperation with the 
U.S.and other donors in the fourth and fifth areas, regarding 
training for police and other investigating groups, as well 
as with training for banks and other financial institutions. 
He noted that the EU project has little connection to 
Customs, and so our programs aimed at helping them combat 
bulk cash smuggling and other activities at the border are 
well-targeted.  Rosado opined that given Morocco's 
"continental-based" legal system, France and Spain are 
perhaps best placed to assist it on questions relating to 
legislation and the FIU itself.  Nonetheless, he also 
identified the possible need for support for Morocco in 
adapting the use of financial software to its needs.  Rosado 
noted that Spain has a state of the art software that its FIU 
utilizes, which it typically offers to partner countries for 
their own operations.  Whether Morocco will elect to use the 
system remains to be seen, but typically it requires not 
insubstantial modifications, for which there is currently no 
EU funding. 
 
¶6. (SBU) Comment: Rosado greeted us in the large, airy office 
he has been allocated in the Ministry of Finance.  His work 
has not been without its frustrations, however-- even after 
four months, he has yet to secure either a computer or cell 
phone.  As a result, he has been obliged to work from home or 
from local cyber-cafes.  He expressed hope that with the 
formal launch of the program, these problems will soon be 
remedied.  We intend to remain in close touch with Rosado as 
the program advances, to identify those areas where U.S. 
assistance can best complement EU efforts.  With a program a 
week, the EU agenda is an ambitious one, that will push up 
against Morocco's absorption capacity.  End Comment. 
 
 
***************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
***************************************** 
 
Riley