VZCZCXRO9380
OO RUEHDE RUEHDIR
DE RUEHAD #1420/01 3530912
ZNR UUUUU ZZH
O 180912Z DEC 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1891
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 8082
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE

UNCLAS SECTION 01 OF 02 ABU DHABI 001420 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR NEA/ARP (BMASILKO) AND EEB 
 
E.O. 12958: N/A 
TAGS: EFIN ECON PTER PGOV AE
SUBJECT: NOVEMBER 2008 MENAFATF PLENARY 
 
ABU DHABI 00001420  001.2 OF 002 
 
 
INTRODUCTION AND SUMMARY 
------------------------ 
 
¶1. (SBU) The Middle East and North Africa Financial Action Task Force 
(MENAFATF) held a plenary session (MENAFATF VIII), working group 
meetings, and an FIU workshop from November 9-13, 2008 in Fujairah, 
United Arab Emirates (UAE).  Treasury Deputy Assistant Secretary for 
Terrorist Financing and Financial Crimes Daniel Glaser headed the 
U.S. interagency delegation.  The delegation included representatives 
from the Departments of the Treasury and State, and the Federal 
Bureau of Investigation. 
 
¶2. (SBU) During this Plenary, hosted by UAE as 2008 President, the 
MENAFATF discussed the work plan and budget for 2009; adopted one 
part of the Report of the Designated Non-Financial Business & 
Professions Committee; adopted the Mutual Evaluation Working Group 
Chairman's Report and the timeline of MENAFATF member countries' 
mutual evaluations and follow-up reports; approved Libya's 
application for MENAFATF membership and the World Customs 
Organization application for MENAFATF observership; and discussed 
upcoming conferences, training seminars and workshops to include an 
assessors training workshop, a MENAFATF private sector dialogue, a 
second ministerial-level meeting, a joint MENAFATF-FATF Plenary, and 
a variety of other member country proposals.  No mutual evaluation 
reports or follow-up reports were presented or discussed in this 
Plenary.  Mr. Abdul Rahman Al Baker, Executive Director of the 
Bahraini Financial Institutions Supervision Department at the Central 
Bank of Bahrain, will be President of the MENAFATF for 2009.  End 
Introduction and Summary. 
 
------------------- 
Miscellaneous Items 
-------------------- 
 
¶3. (SBU) Work Plan for 2009: The work plan for 2009 includes an annex 
indicating tasks that have been accomplished, are currently underway, 
and remain pending.  During discussion of the work plan, Lebanon 
emphasized the need to hold an assessors training as soon as 
possible.  It was agreed that a new strategy would be drafted for the 
next three years and that attention would be paid to holding an 
assessors training. 
 
¶4. (SBU) Budget for 2009: The budget was adopted, though several 
member countries expressed concern in the raising of member dues. 
MENAFATF Executive Secretary Adel al-Qulish presented on the reasons 
for increasing the budget.  For the years 2008-2009, the MENAFATF 
agreed to a 28 percent increase in the budget for Secretariat staff 
salary increases and inflation adjustment. 
 
¶5. (SBU) Report of the Designated Non-Financial Businesses & 
Professions (DNFPBs) Committee: The Plenary decided to publish the 
second part of the Report of the Working Group on DNFBPs entitled, 
"DNFBPs in relation to AML/CFT."  The first part of the report, which 
reflects an overview of each member country's controls regarding 
DNFBPs, was not adopted because only seven out of 17 member countries 
responded to the questionnaire.  The questionnaire will be 
redistributed for response and the first part of the report will be 
presented again in the May 2009 Plenary. 
 
¶6. (SBU) Report of the Politically Exposed Persons (PEPs) Committee: 
The Report of the Working Group on PEPs was not accepted by the 
Plenary.  Members felt the paper was not comprehensive and required a 
deeper examination of PEPs in the region and the manner in which 
governments and financial institutions address the issue.  The 
report, which has been in progress for two years, was postponed until 
the next Plenary. 
 
¶7. (SBU) Mutual Evaluation Working Group (MEWG) and MENAFATF Mutual 
Evaluation Timeline: The Plenary adopted the MEWG Chairman's report 
and the timeline or schedule for both member countries' MERs and 
follow-up reports.  The mutual evaluations of Jordan and Egypt and 
the follow-up assessments of Bahrain, Mauritania, and Syria will be 
presented at the May 2009 Plenary.  Lebanon, Saudi Arabia, and 
Algeria are scheduled to undergo a mutual evaluation prior to the 
next Plenary. 
 
¶8. (SBU) Technical Assistance & Typologies Working Group: The Plenary 
adopted the Working Group Chairman's Report and the TATWG's report 
entitled, "Guidance of Training Different Authorities in the field of 
AML/CFT," which guides member countries on AML/CFT outreach to 
appropriate governmental and private sector institutions.  During 
discussion of the reports, many members expressed their concern with 
the lack of qualified assessors for mutual evaluations.  The UAE, 
Lebanon, and Algeria offered to host assessor training workshops.  It 
was agreed that the MENAFATF would organize a workshop for mid-2009. 
 
¶9. (SBU) Proposal for the MENAFATF PSD: Lebanon proposed for the 
second time that the MENAFATF launch a private sector dialogue.  In 
 
ABU DHABI 00001420  002.2 OF 002 
 
 
the proposal, a working group would be established to reach out to 
the private sector and establish a dialogue attached to each or every 
other Plenary to discuss challenges in implementing AML/CFT controls. 
 The proposal would build on the current U.S.-Middle East and North 
Africa Private Sector Dialogue (U.S.-MENA PSD).  The majority of 
MENAFATF members agreed to the concept of formalizing a dialogue with 
the private sector.  However, several members were uncomfortable with 
a working group that would include private sector representatives and 
requested that the structure of such a dialogue be reexamined and 
redefined.  It was decided that the Secretariat would explore the 
FATF's private sector dialogue and propose a similar structure for 
discussion at the May 2009 Plenary. 
 
¶10. (SBU) Proposal for a Second Ministerial Meeting:  2008 MENAFATF 
President Abdulrahim al Awadi (the head of the UAE FIU) proposed a 
second ministerial meeting in order to brief key regional 
decision-makers on the MENAFATF's successes, challenges, and future 
developments.  The MENAFATF budget would be an issue of particular 
concern.  The majority of member countries were hesitant to approve 
the proposal because they did not feel the meeting was necessary. 
The President requested that members submit potential agenda items 
and the Secretariat would disseminate a draft agenda for discussion 
at the next Plenary. 
 
¶11. (SBU) Proposal for a Cooperative Fund for Training and Technical 
Assistance in the MENAFATF:  The Plenary adopted the proposal to 
establish a fund that would support MENAFATF training workshops and 
technical assistance for member countries. 
 
¶12. (SBU) Proposal to host a joint Plenary with the FATF in 2009: The 
member countries agreed to organize a joint Plenary with the FATF. 
The MENAFATF discussed the proposal with the FATF Secretariat in May 
2008 and the proposal was raised during the FATF Plenaries in June 
2008 and October 2008.  It was agreed that the Secretariat and new 
MENAFATF President would explore possible dates for a joint Plenary 
in 2009-2010. 
 
¶13. (SBU) Application of Libya for MENAFATF membership: The Plenary 
approved Libya's application for MENAFATF membership. 
 
¶14. (SBU) Application of the World Customs Organization (WCO) for 
MENAFATF observership: The Plenary approved the WCO's application for 
MENAFATF observership. 
 
¶15. (SBU) Application of Ukraine for MENAFATF observership: The 
Plenary denied Ukraine's application for MENAFATF observership. 
 
¶16. (SBU) The next MENAFATF Plenary meeting will be held the week of 
May 17-21, 2009 in Manama, Bahrain. 
 
OLSON