UNCLAS ADDIS ABABA 001278
SIPDIS
SIPDIS
E.O. 12958: N/A
TAGS: PTER, KTFN, EFIN, ET
SUBJECT: ETHIOPIA: TREASURY AND GOE CLOSE TO SIGNING
ANTI-MONEY LAUNDERING AND COUNTERTERRORIST FINANCING
PROGRAM AGREEMENT
1. SUMMARY: Governor of Ethiopia's central bank Teklewold
Atnafu met with the Ambassador and representatives from the
Department of Treasury April 9 to conclude negotiations on
the terms of reference for a Treasury-staffed technical
assistance program to develop an anti-money laundering and
counterterrorist financing (AML/CFT) regime. Atnafu noted
that there was widespread governmental support for the
development of an effective AML/CFT regime and agreed that
the program should move forward, despite his reservation over
the duration of the program. END SUMMARY.
GOE REQUESTS AML/CFT ASSISTANCE
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3. At the GOE's request, the Department of Treasury's Office
of Technical Assistance conducted an assessment of Ethiopia's
AML/CFT regime in August 2006 and found that steps to develop
an effective program were underway, but still inadequate.
For instance, Treasury noted that penal code provisions to
criminalize money laundering and terrorism had been enacted,
but few other enforcement mechanisms were in place. The
Ministry of Finance and Economic Development, the Federal
Ethics and Anti-Corruption Commission, the Ministry of
Capacity Building, and the Ethiopian Federal Police
Commission, however, expressed interest in a program to
further develop Ethiopia's AML/CFT program and requested
training and other forms of capacity building to support
these efforts.
4. On an ad-hoc basis, Treasury subsequently conducted a
seminar on AML/CFT regime development for relevant government
stakeholders, served in an advisory capacity to NBE staff in
the preparation of the draft legislation, and facilitated a
legislative assessment by the Department of Justice of the
current draft legislation.
TREASURY SEEKS LONG-TERM ASSISTANCE PROGRAM
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5. At an April 9 meeting to discuss the terms of reference
for a long-term Treasury assistance program, National Bank of
Ethiopia Governor Teklewold Atnafu said he was satisfied with
the progress on AML/CFT legislation and thankful for
Treasury's assistance. Teklewold agreed with most provisions
in the terms of reference but had some reservations about the
necessity for a full-time, collocated Treasury advisor. He
suggested that Treasury offer assistance in the form of
three- to six-week consultation periods as needed. Teklewold
indicated he would sign a revised terms of reference after
Treasury revised the document to reflect his changes. (Note:
Treasury advisors intend to push for a longer term
commitment from the NBE and present the terms of reference
for the signature during their trip to Addis Ababa in May.
End Note.)
6. Treasury's workplan for the AML/CFT program includes
participation by two NBE staff members at an AML training
program hosted by the U.S. Comptroller of the Currency in
Washington, D.C. in May 2007, reaching out to the commercial
banking sector, and coordinating its technical assistance
with the larger donor community involved in AML/CFT efforts,
including the United Nations Office on Drugs and Crime Global
Program against money laundering and other USG offices. As a
related initiative, Treasury will be sponsoring training in
August 2007 with the Federal Ethics and Anti-Corruption
Commission targeted at financial investigative techniques in
money laundering cases where corruption offenses serve as the
predicate offense.
COMMENT
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7. Treasury representatives were not pleased with the
Governor's decision to back away from a full-time resident
advisor, but will focus on reaching an agreement and signing
the terms of reference so that it can move forward with the
larger program of technical assistance. Post will push back
later at a higher level for a full-time advisor from the
Department of Treasury.
YAMAMOTO